ERP Business Software Overcomes Five Financial Reporting Challenges
ERP business software offers business process management and integrates many vital areas of your company, including accounting, finance, operations, and much more. It provides a powerful tool for business growth. ERP software’s potential to improve efficiencies becomes apparent quickly after implementation. But one area in which it shines is overcoming financial reporting challenges.
Common Reporting Challenges
Each company faces unique challenges, but several are very common:
- Raw data: Many companies have raw data and must import it into a spreadsheet program to make any sense or use out of it. It takes time to create charts, graphs, and other data visualizations. Data must also be pulled from multiple departments or computers, a complex task that takes additional time.
- Mistakes: Mistakes during import result in incorrect assumptions made from bad data. It can be a nightmare to untangle such mistakes, especially if you are far along in your work, making the raw data into useful reports and graphs. Errors can also be costly. Research shows that 90% of spreadsheets contain errors that affect their results. A cut and paste error cost one company $24
- Access: If access is limited to finance and accounting personnel, managers from other departments may call or email for reports daily or weekly. Considerable work hours are spent running reports for other people. Last-minute requests interrupt everyday work and push other projects behind deadline.
- Security: If data security isn’t top of mind in your company, it should be. The average data breach costs companies $4 million to fix. The most common cause of data breaches isn’t a black-clad hacker sitting alone in a basement room surrounded by computers. Instead, simple things often leave the proverbial virtual barn door open, so that thieves can get in and steal the horse, or in this case, your data. Failing to update website plugins, inadequate staff training, and other problems all make your company’s data vulnerable to theft.
- Time: A commonality among these challenges is time: time wasted, time spent on tasks other than finance and accounting. Many accountants are frustrated with the amount of time they feel they waste on unproductive tasks.
ERP Business Software – Overcoming Challenges
ERP business software provides an efficient way of managing data within an organization. ERP software offers much more than accounting tasks. It integrates data from operations, supply chain information, warehouse systems, and much more to provide a comprehensive look at a company’s health, whether from an inventory or an accounts receivable perspective.
Overcoming the five common challenges listed above is no problem for ERP business software. For instance:
- Raw data: Raw data flow from multiple systems throughout the company into the ERP business software. It then chooses from among this plethora of data to prepare reports and dashboards showcasing what you need to know. You don’t need to sort through data anymore or call multiple departments for their uploads.
- Mistakes: ERP business software calculates data for you. Transposed digits, mistakes, and formula errors become a thing of the past. Vast amounts of data can be calculated automatically without human intervention, which significantly lessens or eliminates mistakes.
- Access: Most ERP business systems can be set up so that access can be granted on a person- or role-based instance. Some companies choose to allow all personnel to download and review reports. Managers no longer pester the accounting department for reports because the self-service ERP system enables them to run their reports on an as-needed basis.
- Security: ERP systems run on cloud-based servers have security built into the software. Automatic updates by the software manufacturers close known gaps that allow hackers in to steal data. An ERP system will not stop human mistakes, such as people falling for phishing scams, but it can reduce security exposure within the software itself.
- Time: Time savings includes simplified reports, customized dashboards, self-service portals, and automated data imports.
ERP business software does indeed offer much more than a robust accounting package. As you can see from the list above, it offers many benefits above and beyond accounting features that enhance productivity and fuel growth. Whether you choose Acumatica or Sage ERP software, you’ll find that once you’ve used an ERP system, you’ll wonder how you ever lived without it.
For more information about ERP business software or to schedule a consultation, please contact Mindover Software, 512-990-3994.