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5 Benefits of ERP for Accounting and Financial Management
/in Blog, ERP Software /by lindsayMany businesses have separate systems for accounting and Enterprise Resource Planning (ERP). Depending on its size, a company may not even have ERP. Or, as is common, they acquired these applications at different times and implemented each for its primary purpose: an accounting package for the books and financial management, and ERP for operations management. This separation is not longer necessary, nor even a good idea. In fact, there are at least five benefits to using an ERP solution’s accounting functionality.
The Value of Integration
We will outline some of the reasons it’s wise to use ERP for accounting. At a high level, though, most of these benefits relate to one core issue, which is integration. Accounting systems require data inputs from a variety of sources. These include manufacturing management, warehouse management, logistics, billing, HR and so forth. ERP-based accounting automatically integrates these multiple data sources.
5 Benefits of ERP-Based Accounting
Having worked with many clients on ERP and accounting software implementations, we have found the following benefits arise from using accounting in an ERP suite:
1. Richly detailed financial reports
Standalone accounting packages offer basic financial reports like income statements, balance sheets and so forth. In contrast, ERP offers many more varied types of reports. Examples include cash flow projections based on inventory management and order statuses and accounts receivable aging overlaid with customer order pipeline. These reports give you more than just financial data. They help you manage your business more effectively.
2. More automation
Automation helps with productivity. By having ERP and accounting linked, it’s easier to automate workflows that cross between the two systems. When you use ERP for accounting, many accounting and financial tasks can be completely automated. For instance, you can streamline accounts receivable and accounts payable management and cash management. Automation also lets you track financial transactions more quickly.
3. Freedom from duplicate data entry
Having separate systems usually means manual re-inputting of data from one to the other. Integrating ERP and accounting removes this tedious process of data entry by hand. ERP makes data entry fast and consistent.
4. Not so many errors
Manual data entry is notoriously prone to error. These include transposed digits and incorrect client names, etc. These can cause calculation mistakes, which then take time to unwind. You can also see who did what, for each transaction, in case you need to track down someone who made a mistake.
5. A higher degree of control
Using ERP for accounting gives you more control over your business. You can see the bottom-line impact of events and decisions in real time.
Financial Management With Acumatica Cloud ERP
We have experience setting up customers on ERP-based accounting. For a going concern, this means migrating off of a legacy standalone accounting package. It’s a process. There doesn’t have to be a lot of complexity or challenge, but it does take focus and some effort. We provide the expertise. If you want to learn how we can help you run your business better by taking advantage of accounting in ERP, let’s talk.
Acumatica Cloud ERP delivers, providing adaptable, feature rich, and integrated enterprise resource planning software that streamlines your processes and facilitates your decisions. The core of your ERP, Acumatica delivers powerful business finance software – simple enough for small shops and comprehensive enough for complex multi-nationals – that can support your needs today and in the future.
Additional ERP Resources
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Improving Collaboration with Microsoft Teams
/in Blog, Microsoft Teams /by lindsayThe drive for better ways to collaborate in corporate life never stops. As organizations grow more geographically spread out, virtualized and matrixed, workers need to be able to work together with as few obstacles to productivity as possible. A team with members on different continents might convene to complete a task. How will they get their work done efficiently? This is partly a matter of culture. People have to want to collaborate. But, assuming the desire is present, effective collaboration is mostly about having the right software.
Collaboration Tools: An Ongoing Story of Evolution
The history of online collaboration tooling parallels the development of networked computers. At first, the mere ability to send an electronic mail (email!) message from on PC to another was nothing short of a revolution. From there, the industry has produced a long series of increasingly advanced collaboration products.
Early on, teams collaborated using a variety of solutions at the time – chat in one app, web meetings in another, document repositories in a third place and so forth. Now, with Microsoft Teams, we have one collaboration solution that unifies the most common functions required to enable people to get things done productively.
The Collaboration Advantages of Microsoft Teams
Microsoft Teams represents a significant advance in a long line of Microsoft collaboration tools. It combines chat, voice and video calling, online meetings and integration with productivity applications like Word and Excel. As a native component of the Microsoft Office 365 ecosystem, Teams offers an intuitive, natural fit with the way people work today.
A typical collaborative use case for Teams might look like this: Bob video calls Sally in Teams to discuss a document they’re both assigned to write. To resolve an issue in the writing, Bob pulls up the document in Teams. With Sally and Bob both able to see the document, they can collaboratively edit it in real time. In the process, they realize they have questions for Joe and Betty. Through Teams, they can see Joe and Betty’s presence. They then kick off a web meeting where all four of them can talk about the document.
Teams adds a powerful search capability to collaborative mix. This helps solve a problem that has vexed the collaborative process for years: the difficulty finding the most recent and relevant material. Teams enables search for content, tools, contacts and conversation threads. The search feature connects with SharePoint, OneNote and Planner. Team members can instantly find what they’re looking for. Documents shared in Microsoft Teams are automatically saved to the cloud. Team members are always working from the latest version without the need to search for it.
Users of Teams have the ability to tailor workspaces with any specialized content or apps they need. For instance, a Team user could add a tab for a Word document or Power BI dashboard. He or she could also add Jira or Trello if those are required to keep people working together productively.
On the back end, Teams gives IT managers sophisticated security and configuration controls. This is a sometimes-neglected aspect of the collaboration story. A collaboration tool must be easy to administer. It has to be subject to security policies.
Interested in Microsoft Teams? Achieve Ultimate Collaboration in Just 2-3 Weeks
Get a head start with the Teams Quick Start Program from CCS Technology. We can get you up and running on the Microsoft Teams platform in 2-3 weeks so you can transform productivity and translate into more effective meetings, greater revenues, and profits. Click here to learn more.
5 Reasons Distributors Need ERP Software
/in Blog, Distribution Industry, ERP Software /by lindsayIf you’re a distributor, what business are you really in? On a day-to-day level, your business sources product from suppliers, stores it until it’s sold, and then transports it to customers. In its essence, though, a distributor is in the money management business. You’re taking cash and turning it into inventory. Tick tock – the longer it sits there, the less of a return you’re earning on that cash. Any operational or customer relationship issues that further stretch out the payment for a sale is lowering your return on capital even more. If you borrow to finance a distribution business, you’ll understand this problem deeply.
Software has long assisted distributors in making their businesses run right. Today, though, modern enterprise resource planning (ERP) solutions give you new ways to cut costs and shorten that all-important cash cycle. Here are five reasons you need ERP software if you’re in the distribution business:
1. Be able to improve customer satisfaction and cut costs at the same time
A modern ERP suite allows you to be efficient in the management of distribution processes. You get real time visibility into available inventory and inventory costs, inventory in transit and reorder quantities. This visibility translates into low operating costs and clear, productive communications with customers. You can cut down on misunderstandings and delays that negatively affect customer satisfaction.
2. Reduce order times
Automated sales order processing, which is available in ERP solutions, eliminates delays in order fulfillment and shipping. The suite usually also enables you to set up rules to handle credit, returns, drop shipments and so forth across multiple warehouses.
3. Run an efficient warehouse
The more efficiently your warehouse(s) run, the more profitable your distribution business will be. A Warehouse Management System (WMS), which comes with many modern ERP suites, lets you streamline your distribution processes. The system covers workflows across receiving and inventory management as well as the operation of tools like barcode scanners and mobile devices.
4. Stay on top of your supply chain
ERP enables you to ensure a steady supply of goods to distribute. It accomplishes this by automating and optimizing purchasing processes, purchase order management and supply chain management.
5. Know your true costs
A modern ERP suite gives you the ability to determine profitability by warehouse as well as by product line or business unit. Reporting and data visualization tools help you spot cost overages and other drags on profitability that may elude standard financial reports.
Control Your Inventory and Increase Customer Satisfaction with Cloud ERP Built for Distribution
Those are just five big reasons distributors can benefit from modern ERP. You can also push up your profitability—through a better cash cycle as well as more efficient operations—by means of advanced inventory software, requisition management and advanced financial reporting tools.
Distribution is all about logistics. Without the right tools, distribution companies simply can’t compete. We have considerable experience in the distribution vertical, equipping clients with industry-specific tools, like Acumatica, that ensure a smooth process, top-notch security, and consistent reliability.
Acumatica Distribution Edition delivers, giving your business control over their supply chain and logistics activities, including warehouse management, inventory management, and order management. Built in the cloud and customized for your needs, Acumatica helps companies improve customer satisfaction, reduce order times, and control costs across the entire supply and distribution chain.
Click here to learn more or request a demo.
Check out these other articles for more ways to improve your distribution business:
How ERP Software Can Promote a Sustainable Supply Chain
Benefits of Inventory Management Software for Your Distribution Company
ERP for Distribution Companies