In this article, you will understand what a financial ERP is and why it is important for medium and large companies. Don’t miss it!
What is a financial ERP?
The financial ERP (enterprise resource planning) is an integrated management system that helps in the administration of the financial resources of your business. The tool deals with all entries and exits, allowing managers to understand how money moves in the cash register.
It is a very efficient way to identify bottlenecks, opportunities to maximize profit and excessive expenses. Thus, the company can make the necessary changes to achieve better results.
In addition, the financial ERP allows you to have an overview of how the flow of resources in the company works. All expenses are presented in its interface and the system can be used by any organization.
As a consequence of this level of evaluation, managers will have more basis to make important financial and budgetary decisions, in an agile and correct way. This process also directly contributes for the entire team to understand the company’s financial situation.
Therefore, this level of knowledge is fundamental for the company to assess the measures that will be adopted, such as the need to cut back on expenses or investments. After all, the goal is to achieve a sustainable and profitable operation.
What is it for?
Now you know that the financial ERF is intended to assist in the management of the company. To this end, the system integrates all financial data , in addition to other operations that influence internal processes.
After all, a complete tool is made up of several modules and allows control of the entire tax and accounting part. In this way, the entire operation of the company is recorded in a database. And, as a consequence, this organization allows making more correct strategic decisions.
How does a financial ERP work?
After understanding what the tool is, it is worth knowing that the financial ERP has several functionalities and automates a series of tasks, facilitating the management of the business. In practice, it organizes cash flow, generates reports, controls accounts and concentrates customer and supplier records.
Financial management , for example, involves planning, organizing and defining the best use of resources for the business, requiring the organization of cash flow. Furthermore, as the information is integrated into the system, it is possible to generate reports in less time and with more relevant data.
It is this potential to integrate the sectors that allows the financial ERP to provide in-depth information on the company’s conditions. Thus, managers can use financial indicators to make decisions related to the business.
Regarding accounts payable and receivable, the lack of organization can cause them to get lost, especially in medium and large companies. In these cases, the financial ERP helps to balance the process, as it allows locating, storing and analyzing financial data with greater agility and security.
For example, you can have easy access to accounts payable and receivable, budgets and forecasts. There is also a way to automate some processes, such as billing customers registered in the system.
Another important point is the fact that the settlement of debts can be registered automatically. With this, the company speeds up the closing of accounts in less time and avoids errors in the processes.
The financial ERP also allows you to catalog customers and suppliers, allowing you to identify active contracts. It is also possible to centralize the management of certificates, contracts, documents and other information.
Why can your company benefit from this system?
After knowing what financial ERP is and how it works, it’s worth knowing the benefits it can bring to your company. Check out the main advantages of having this system:
Ensuring information security
Having an ERP that stores information in the cloud is a great way to increase data security. The storage directory is encrypted and can only be accessed by authorized persons, providing greater protection.
As you have seen, financial ERP allows you to understand how resources are being spent — an essential factor in reducing costs. In this way, the company can operate more efficiently.
With the system, it is possible to carefully analyze the fixed and variable expenses of each department. Afterwards, the financial sector can understand how they influence the costs of services and the profit margin of the business.
Another interesting point is that ERP brings more productivity and efficiency. As a result, the company can reduce expenses by reducing errors and rework.
Monitor transactions in real time
In order to carry out good financial planning, the company needs to have a history of all transactions carried out. Gathering this information using a single system allows you to have a global scenario of the business and make a more effective financial forecast for the coming months.
Thus, a financial ERP associated with a management system allows monitoring in real time financial and bank reconciliation, cash flow control and other processes in the financial sector. The manager can then closely analyze what is happening in the company.
Keep your tax obligations up to date
There are several tax requirements that companies must comply with. In this regard, careless actions can result in serious problems. For example, there are risks that they generate fines, assessments and sanctions. Here, financial ERP can be a great ally to avoid these problems.
With this tool, the company is able to carry out several tax demands in a simple and automatic way. Among them are:
- issuance and management of invoices;
- asset control;
- Tax SPED (Public Digital Bookkeeping System);
- tax bookkeeping;
- between others.
Now you know what financial ERP is and what it is for. When evaluating the adoption of the tool, remember that it is possible to integrate the system with a management platform to automate processes and make your company’s routine even easier.