Why Accounting Module in ERP System is Important for Organisations?

Automating tasks can greatly enhance the operation of your firm, particularly accounting procedures that need a significant level of precision. To do this, organisations consistently depend on an Enterprise Resource Planning (ERP) system. It provides your organisation with immediate access to up-to-date information from any given place. This indicates that the company’s database is promptly updated when changes occur. The Accounting Module in ERP System is a software application that gathers data and generates reports on various accounting activities of an organisation, including receivables, cash flows, payables, and more. It equips an organisation with the essential resources to handle financial matters efficiently.

The ERP Accounting Module is well-suited for overseeing the company’s financial operations, with the added benefit of interacting with other modules or units seamlessly. There will be no errors in computations and a high level of openness will be maintained. Organisations will have access to view their revenue and expenditures. The management team utilises this information to enhance financial decision-making and strategies for initiatives.

Key characteristics of accounting module in ERP system

Client database

 

In this feature of accounting module in ERP system, all the data about clients is saved. Organisations have the ability to grant their staff authorisation to view sensitive information pertaining to clients, including credentials, financial transactions, and balance sheets. This is utilised to enhance the quality of client service.

Accounting system

 

It alleviates company’s personnel from a substantial amount of paperwork. Papers will be transformed into digital reports and spreadsheets that can be easily accessed by company’s personnel.

Asset management

 

This tool is designed to facilitate the management of your assets. Companies can oversee the assets during their entire life cycle and manage them accordingly.

 

Financial analytics

 

This feature provides real-time monitoring of receivables, payables, and other financial data via the dashboard. The user interface (UI) is intuitive, user-friendly and comprehensible.

 

Forecasting

 

The accounting module provides accurate projections by analysing the current condition of your business and utilising reports.

 

Interoperability with diverse systems

 

The financial module must possess the capability to seamlessly exchange data with other applications or modules.

Subsystems of Accounting Module in ERP System

General ledger

The general ledger serves as the central component, providing comprehensive data management and seamless connectivity with other divisions inside your organisation. It serves as a centralised repository for accounting information required to enhance decision-making. The comprehensive facts on your financial situation may be accessed at this location. You have the capability to establish the Chart of Accounts utilised by your firm.

Outstanding debts owed to a company

This subsystem manages the financial transactions with clients that utilise the products or services provided by your organisation. It collects financial receivables and carries out responsibilities such as monitoring bills for clients who have outstanding payments. This tool also enables your organisation to categorise accounts. It offers a credit management system that operates in real-time. Company’s reports will include comprehensive research as well as statements from clients that have outstanding payments owed to your organisation. This system will also send you notifications regarding outstanding invoices.

Accounts payable

This subsystem manages the input that your organisation receives in the form of products or services. It provides your organisation with the capability to promptly register, monitor, and approve incoming bills. The invoice approval form is user-friendly. Invoices can be automatically produced as required. Additionally, it has the capability to automatically align receipts with invoices.

Management of assets

Fixed assets management is a primary financial activity. This part maintains the assets ledger, which contains information pertaining to asset transactions. Asset management involves monitoring and documenting the whole lifespan of your assets. It oversees the investment and sale of fixed assets, calculates the cost of depreciation, and conducts revaluation.

Financial management of cash

Here you can find all the information pertaining to the financial flows of your business. It systematically handles and examines all financial and banking activities related to invoice payments. The cash management subsystem examines financial activities within a defined time frame and offers information on the origin of revenue and allocation of money to manage liquidity. It is crucial for your organisation to fulfil its payment responsibilities.

Advantages of utilising the Accounting Module in ERP System

 

• Reduces operational expenses by minimising superfluous expenditures, hence lowering the overall cost of running your organisation.
• The accounting module allows users to add or delete functionalities. Consequently, you will have an ERP system that is tailored to the unique needs of your firm.
• This accounting module provides comprehensive oversight of your company’s financial operations, therefore guaranteeing efficiency and client contentment.
• You have the ability to oversee and control your accounting activities from any geographical location.
• The different divisions within your organisation will have the opportunity to collaborate with the finance department in order to enhance the quality of decision-making.

Conclusion

 

The accounting department is a crucial component of every organisation. Exercising effective management of this department is crucial for your company’s success in this period of intense competition. Utilising a proficient ERP system is the most effective method for managing it. ERP systems have seen substantial developments throughout time as vendors exploit the newest technical innovations and broaden the capabilities of this technology. Despite these changes, one aspect has remained consistent: to maintain competitiveness, organisations require an ERP module capable of overseeing and controlling all financial activities while providing performance reports. The Accounting Module in ERP System is the central element of every contemporary ERP solution.