3 Ways to Improve Your Financial Management and Analysis with an ERP System
ERP Systems can help your business in many ways, and some are more obvious than others. When people typically think of ERP, streamlining processes and refining supply chain management comes to mind first. These benefits are indeed great, but ERP systems have other beneficial capabilities too. The advantages we’ll discuss today are three ways that ERP systems can help you simplify and improve your financial management and analysis.
- Helps You Analyze Cash Flow, Cost Analysis, and Profit Tracking: Your company’s cash flow and liquidity determine what your company can and can’t do, and how fast you can grow. An ERP system helps you better manage your inventory and automates processes like reordering. Simplifying your processes enables you to keep costs down by reducing the amount of cash you have tied up in excess stock, and it allows you to use your consolidated data at any time to monitor your financial position. You can also analyze this data to help determine your return on investment (ROI) on any purchase, examine where your profits are coming from, and see where you spend money. By effectively using your ERP system’s tools, you can make changes when necessary to help increase your revenues.
- Provides a Comprehensive Look at Asset Management: It is a lot of work to manage all of your company’s fixed assets and also develop your investments strategies too. Your fixed assets including everything from your buildings, equipment, machinery, office supplies, etc. Having an ERP system in place allows better visibility of your asset management, provides you with tools to analyze what purchasing decisions make sense, and can help you avoid wasting your money on unnecessary capital expenditures. Also, with an ERP system, you can easily track your assets, access comprehensive reporting on their valuation, and better decide when it is time to replace or stop using them.
- Creates Useful Financial Statements and Reporting: ERP systems can provide you with information about every area of your business (financial reporting, sales, budgeting, billing, etc.). By collecting and consolidating operational and production data, you can create analytical reports and get real-time insight into all of your business activities instantly. Having the ability to analyze this information enables you to create a more efficient business model for your company, and it can also help to give you a competitive advantage because you can react and respond quickly to any unexpected changes.
Using an ERP system can help provide you with a comprehensive view on how your business is doing from an expense, income, and profit standpoint at any given time on demand. Once you can see and understand the complete picture of your company, you can make better and more informed financial decisions. At Virtutem, we specialize in ERP system implementation, and we can help you integrate and streamline your processes to transform your entire organization. If you have any questions or are interested in more information on how an ERP system can increase your organization’s efficiencies, please contact us today.
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