How ERP Accounting Software Helps Organizations Achieve Profitability?

Modern ERP solution has various features that can help organizations achieve profitability and smoothly handle all operations. Modern organizations need a consolidated solution for handling their business activities, especially accounting functions without any errors. ERP Accounting Software is the latest business solution that helps companies handle their accounting operations effectively. The accounting feature in ERP software simplifies accounting processes like controlling budgets, managing cash, reporting, VAT management, and so on. Below you can see different features of erp accounting software: 

 

Latest Features of ERP Accounting Software: 

 

The features of ERP accounting software vary according to different companies’ needs, some of the main features are discussed below: 

 

General Accounting: 

 

This module enables you to oversee general ledger accounts, input accounting transactions, modify financial statements, monitor cash flow, and produce financial reports. 

Accounts Receivable:  

 

This enables you to have authority over accounts, monitor invoices and payments, handle unpaid amounts, and create payment reminders. 

Accounts Payable: 

 

This enables the management of supplier accounts, tracking of invoices and payments, handling of outstanding amounts, and transmission of payment orders. 

Cash Management: 

 

This feature encompasses the monitoring of firm cash flows, administration of bank accounts, generation of cash forecasts, and management of foreign exchange transactions. 

Budget Control: 

 

This enables the management of firm budgets, monitoring of expenditures and income, generation of budget analysis reports, and informed decision-making based on the findings. 

Fixed Asset Management: 

 

This functionality involves the management of firm assets, including tracking their value, managing depreciation, and generating reports for fixed asset analysis.

 
VAT Management: 

 

This feature encompasses the ability to effectively handle the company’s VAT responsibilities, including the generation of tax returns and verification of their adherence to regulatory requirements. 

Cost Report Management: 

This involves overseeing employee expense reports, monitoring costs, and generating reimbursement reports.

 

Audit and Control Management:

 

This feature enables the monitoring of audits and financial controls in an efficient way. It helps the generation of compliance reports, and the implementation of corrective measures if required. 

Analysis and Reporting:

 

This functionality allows users to create reports, analyse financial information, monitor key performance indicators (KPIs), and make well-informed decisions. Those decisions are based on the current situation of the company’s accounts. 

 

Benefits of Using ERP Accounting Software for Organizations: 

 

Furthermore, Accounting feature in ERP systems provides a lot of benefits to companies for handling their accounting systems efficiently. Here are some important benefits of ERP accounting software:

 

Centralisation of Data: 

ERP solution consolidates all of the financial capabilities of a firm into a single location, simplifying their management and processing.

Automation of Processes: 

These software types offer solutions that automate operations such as logging entries, verifying customer and supplier bills, tracking work-in-progress and payments, and more. They minimise errors and repetitive procedures and save time on projects with minimal value-added. 

Enhanced Efficiency: 

An Enterprise Resource Planning (ERP) system enhances team productivity by minimising manual duties and errors, enabling them to focus on more valuable and strategic activities. 

Live Monitoring: 

This provides a live display of the company’s financial data, enabling careful monitoring of the company’s financial status and prompt response if needed. 

Enhanced Decision-making: 

By possessing a thorough and precise understanding of financial instruments, individuals in positions of authority can make well-informed choices regarding financial strategy, investment, risk management, and other related matters. 

Adherence and Compliance: 

ERP accounting systems have features that facilitate adherence to existing accounting and tax regulations, simplifying the fulfillment of legal responsibilities. 

Enhanced Communication: 

They enable communication across various teams within the organisation, offering a unified, worldwide perspective on financial information.

 

Where does an ERP Accounting Software stand in comparison to Traditional Accounting Software? 

Traditional software for accounting is a type of information technology solution that is aimed to assist businesses in effectively managing their figures and costs. It does this by automating accounting services such as the recording of journal entries, the administration of invoices, expense accounting, and other similar tasks. Typically, accounting solution is developed for SMEs, and they can be utilised on their own.

On the contrary, the accounting feature in ERP solution is a more complex system that manages all parts of a company’s operations, including financial aspects in a better way. ERP accounting solutions consists of several different functional modules that can communicate with one another. These modules include finance, purchasing, sales, inventory, sales, and production, among others. This ensures that all of the company’s data is under centralised control. Generally speaking, these solutions are intended for medium-sized or big businesses.  You can adopt these solutions to match the particular requirements of a given organisational structure. You may, for instance, go with an ERP that is hosted on your servers or one that is connected to the cloud.

In a nutshell, the primary distinction between traditional accounting software and accounting ERP is focused on the functional coverage of the software. Accounting software is mainly concerned with accounting operations, but enterprise resource planning software encompasses all corporate processes.

 

Conclusion:

 

In conclusion, the selection of an ERP accounting software is contingent upon the specific requirements and preferences of your firm. It is crucial to thoroughly assess each alternative and contemplate its long-term implications on your organisation.

Moreover, the accounting program allows you to handle cost-accounting entries, with built-in management of cost breakdowns based on third-party or product categories. Access real-time accounting reports with ease by just clicking on some options. Those options include general ledger, balance, remittance slip, journals, VAT, and more.
The scheduling of accounting periods can be customised by the organisation, as well as the management of journals and charts of accounts. Furthermore, you can tailor tax positions according to specific transactions, in addition to the automatic tax control feature.

CherryBerry ERP can help you integrate the right ERP software with your accounting system. Our advanced collecting functionality allows you to automate the sort of reminder you want to send to your customer. It is done by defining reminder rules based on customer type. Additionally, you have the option to choose a specific timeframe for surpassing the designated payment due date.