6 Key Features of ERP Financial Management Systems

 Are you in search of a high professional accounting and finance team to improve your overall business operations?


And an Enterprise Resource Planning (ERP) system can play this major role in various organizations to streamline the business accounting needs. The system is equipped with all the necessary features that provide a better view of all the departments, which further helps in making faster and accurate decisions on the road to business success. 





Thus, adopting an ERP Financial System will automate the essential functions and provide detailed data insights on the various sources, including - general ledger (GL), accounts payable, accounts receivable, payroll and financial reporting. It means the system will keep an eye on financial data and show enhancement in cost efficiency. These modern systems are well-featured with various other specifications like - inventory, order and supply chain management, procurement, production, distribution and fulfilment.


With financial management solutions, you can lessen the impact of economic disruption while maintaining business continuity. It helps businesses in tracking daily financial operations and generating quarterly and annual financial statements. 


What features are added to an ERP financial management system?


Let’s have a look at the following guide to determine the answer.


Table of Content



What is ERP Finance?

Features of ERP Financial Management Software

Ledger Management

Profit Tracking

Fixed Asset Management

Reporting

Multi-Currency Management

Tax Management

Wrapping Up!

What is ERP Finance?


An ERP finance system is a module that collects all financial data of the company to generate annual or monthly reports. It automatically creates financial documentation and presents it in a fully understandable manner. Its various functions like accounts payable, accounts receivable, general ledger, budgeting and more - all are responsible for making this system over the edge. 


Thanks to modern solutions and equipment, each enterprise can move to a new level of functioning. Financial management software is actively used in the business environment. It is unique software designed to manage the resources and work processes of the company. They are indispensable for organizing the work of such enterprises, whose activities are associated with complex production, the release of a large assortment of products, a large volume of warehouse operations, and a branched structure of business processes.

Features of ERP Financial Management Software


As discussed above, the ERP financial management system allows you to maintain a general ledger, manage settlements with debtors and creditors, perform fixed asset accounting, manage cash, plan financial activities, maintain financial reporting and accounting, etc. The use of ERP systems significantly improves the quality of organization management. They simplify control over the flow of work between departments, reduce the costs associated with duplication of information and tasks, decrease the losses arising from the work of different management systems.


The following features of ERP Financial Management Software:

  • Ledger Management


Ledger management is one of the essential features of ERP financial software. Under the assistance of this fundamental feature, an administrator will get a thorough record regarding various transactions. Whether these transactions are related to inventory management or any other module, it'll directly make the entries into the general ledger. Doesn't matter - where you are. You can remotely handle and observe the entries in this single system. You can even track the assets, liabilities, capital accounts, income and expenses. Getting well-managed financial data in one place can help in filing tax returns, which keep your business on the top. The system is capable enough in identifying the odd transactions and even notify regarding any instances.

  • Profit Tracking


The main purpose of every ERP financial management module is to earn profit. And this is the profit tracking system of ERP that will keep an eye on  - how the business is using its financial resources, plus its overall health. Monitoring profits means determining the number of sales and profits are coming from which part. Additionally, the tracker will evaluate how much a business is benefiting from your efforts. Hence, thinking about financial management software will make the first move towards success.

  • Fixed Asset Management

This phase of the ERP finance system handles and monitors various substantial assets of the companies, including computers, office space, manufacturing machines etc. It will make calculations according to the tax implications and requirements. As a result, the module provides better visibility in compliance with expenses, maintenance, and utilization. Keeping an eye on your assets protects you from paying taxes on items and maintaining the records on every purchase or replacement of the item. 

  • Reporting

It's a crucial part of every organization to maintain various financial data. This is where the reporting feature of ERP software helps in offering real-time data regarding transactions and other finances. This analytical module helps you make data-driven predictions and decisions regarding the company's investments. The reporting and analytics phase of an ERP system will show some areas where improvements are necessary. Additionally, the dashboard also mentions data of - expected sales, generated sales, expenses and many other financial elements. It'll also show the data in a graph, which allows you to quickly understand your financial health.

  • Multi-Currency Management

If your business has subsidiaries in various regions of the world, the ERP system equipped with a multi-currency management system provides the capability of handling the financial data in various currencies. It automates the method of both purchasing and trading in international currencies. This further allows you to make the transactions complete whether you're handling your business in foreign currency.

  • Tax Management

Tax management solution provides tax audit and tax reporting purposes. With these taxation settings, you will get a consistent collection of sales and VAT taxes. This module can accomplish the tiresome task by managing sales tax jurisdictions of ship-to addresses. Otherwise, it will use prebuilt tax intelligence to process sales activities in agreement with decent regulations. The capabilities of your tax management depend on which system you purchase and the needs of your organization. Hence, it's a greater way to avoid spending time on other important tasks.

Wrapping Up!


There are a large number of ERP system offerings on the market. Suppliers offer both ready-made solutions and custom development. Depending on the implementation technology, ERP systems can be based on "cloud" services, object-oriented architecture or "client-server" applications. The Sage 300 ERP Software is considered as one of the best ERP financial systems. But the choice of a system depends on the business requirements and budget constraints.
Location: Singapore

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