Steady growth is what companies will always aim for; attaining higher sales figures to bring in more money allows a company to hire more people and accomplish their initiatives faster. But as more departments are being created and more employees are being brought in, productivity and margins can suffer without a solid foundation.
The accounting department is one area that gets hit harder than the rest. Keeping up with payroll, tax procedures and financial reports can be a snowball of disorganization and stress if the right team and work structure isn't assembled. Businesses finding themselves in this situation won't be saved by simply hiring more accountants. In such cases, employing the use of ERPs or enterprise resource planning solutions is not only a novel idea, but also a sensible one.
But how exactly will it improve your company?
1.) The Accounting Department Become Agile
Paper invoices and sales orders are a relic of the past. Digitizing these processes ensure that you only have to enter information once before they are immediately copied and shared to the different departments. Cloud ERP finance solutions allow accounting to gather financial data from the other departments, enabling them to consolidate the essential information much quicker. Every sale made by the sales team or any order of raw materials made by production is immediately noted by the accounting department, allowing the company's finances to be kept up-to-date with much less cross checking and chances for miscommunication.
2.) There is No Need to Build and Maintain IT Infrastructure
One particular advantage of cloud ERP finance software is that you don't need to purchase hardware and hire additional IT specialists to keep it running. The software instead runs off the ERP vendor's servers, which are, in turn, kept well-maintained and up-to-date by their own IT specialists and engineers. Being able to enjoy seamless cloud architecture without having to clean up any messes takes an enormous burden off a company's shoulders, allowing them to focus on other aspects of their business closely.
3.) Integration Between Accounting and Other Departments
Every company will have a number of departments tasked to handle different aspects of the business. As the company scales up, these departments might employ the use of software to facilitate or even automate the completion of necessary tasks. As the company grows, it might employ an increasing number of software to handle even more tasks. Accounting might use a number of programs to handle thing like payroll, or payables and receivables. The other departments are also making use of their own software; the production team, for example, might use something to keep track of inventory and to know when they need to purchase more materials. These programs might do pretty well at the job it was built for but one important question you need to ask is, "How will each department's respective program work together in harmony?"
The accounting department will need to know the purchases made by production to keep better track of finances, and getting such information may not be easy if different systems are being used. With ERPs, the work of multiple programs can be consolidated under one system, allowing various departments and managers to coordinate and work together. Companies that have built their software on the cloud, and in conjunction with other top applications, such as Kenandy's ERP finance solutions with the Salesforce App Cloud, take it a step further by using a near-ubiquitous business application in tandem with its enterprise resource planning.
ERP finance solutions will keep your growing company from losing steam, and ensure you're not mismanaging your finances in the process. Automate different accountings tasks and effectively collect data from all corners of your organization. In this day and age, there's no excuse for having silos in your organization. Growing well means growing steady.