Published on: November 08, 2016
We all know that cash flow can make or break a business. A strong cash flow will allow your business to prosper, but a cash flow shortage can stop growth in its tracks. You can improve your cash flow by effectively using the resources offered within your ERP system. If you aren’t sure what that means or where to start, we are going to make it easy and tell you about it.
What Is an ERP System?
ERP is short for enterprise resource planning. Enterprise resource planning (ERP) is business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources. ERP systems such as Acumatica, Sage 300, and Sage 100 ERP are great choices when it comes to implementing an ERP system into your business.
Are you doing the same thing over and over again in your software and expecting to get a different result? Join us for our webinar, Getting ERP Perspective, and learn how to get the results you want out of your ERP system. Register here.
Cash Flow Problems? Your ERP Can Help with That
The key to understanding how an ERP system can help with cash flow problems is to think about what it does best: automate and integrate. It can automate routine tasks such as billing and invoicing—and integrate with systems such as accounting and finance—to run reports on unpaid invoices, past due invoices, cash flow, and much more.
Your ERP system can help you improve your cash flow in the following ways:
- Report late purchase orders: Orders may not be shipping out of your warehouse because only partial orders arrived. With late purchase order reports, you can see at a glance what you may be missing to fulfill orders. You can then follow up, improving both cash flow and customer service.
- Run purchasing and planning reports: Purchasing and planning reports can help you plan your inventory more effectively. Businesses often have most of their capital tied up in inventory purchases, and any excess inventory merely takes up space and bogs down money that could be spent elsewhere. Purchasing and planning reports can help you decide what to restock and when to order it. It helps you plan more efficiently and effectively for the future to keep stock levels sufficient, without creating overages.
- Streamline workflows: Improving efficiencies can save you time and money. Remember that an ERP system automates as well as integrates. What processes are you doing manually now that can be easily automated in the ERP system? Many of these processes, once automated, can save considerable time, thus freeing up personnel for other tasks.
- Follow up on past-due invoices: Another benefit to an integrated system is that you can easily see which invoices are past due. Following up on open invoices can add cash back into the cash flow and close out some past due accounts. It is easy to see these open invoices on an ERP system.
- Know your cash flow: ERP systems provide you with accurate, real-time reports. These reports can help you keep a close eye on your cash flow. Many companies now struggle to understand their cash flow simply because they lack data on specific transactions, patterns, and more. With easy-to-run reports, you can quickly review your current cash flow situations. More importantly, you can get to know your cash flow and how it fluctuates on a daily, weekly, or quarterly basis. It’s the start of regaining control over your cash flow.
An ERP that’s Right for Your Business
Acumatica is a complete and adaptable cloud based integrated accounting, CRM and business management suite, offering the deep functionality finance executives need to automate and streamline financials and project accounting. Ideal for small and midsized businesses, Acumatica Cloud ERP’s browser-based software offers many choices in deployment, licensing, integration, and customization – making it easy and affordable to implement.
Sage 100 has helped small businesses streamline business processes for years. This modular ERP helps businesses to enhance workflows, manage finances and increase productivity.
Sage 300 is an ERP system that is available both on-premises and in the Cloud. With a full 360-degree view of your business and a variety of modules designed to work with your accounting solution, Sage 300 can help you achieve your business goals.
To learn more download our free whitepaper Tips for Maximizing the Return on your ERP Investment.
Mindover Software offers enterprise resource planning systems that can help you improve cash flow and grow your business. Contact us to learn more about our ERP solutions, like Acumatica Cloud ERP, Sage 100 and Sage 300.