How can an ERP system streamline your financial department

Author: Bit Software
Date: 26- 01- 2011

One of the challenges that an ERP system should respond positively is related to the transfer of accounting department specific operational activities from the operating field to the analysis of financial indicators and workflow control. Thus, in order to ensure a high quality of accounting information generated by those responsible for inputting data into the system, it is absolutely imperative that the initial configuration parameters to be extremely flexible, combined, of course, with the specific restrictions for each operational role and the existence of some powerful tools for analysis and testing.
When it comes to flexibility of initial setup parameters, we refer to both, defining accounting plan and specific accounting items (articles, partners, banks, cash registers, VAT, customs duties, assets, personnel, etc.) and defining formulas to automatically generating specific accounting notes for each operation. And because most of the operators who enter data into the system does not have specialized concepts, ERP system must provide very simple and clear definitions of the connection points between the operational and accounting.
For any business that wants to grow, a healthy and steady growth, real-time insight into financial and accounting situation is vital. And a well-configured ERP system can ensure the analysis of partial results at any time, so that corrective transactions can be carried out when necessary.
In terms of accounting personnel, the biggest problem is the accounting month closing checks which are performed on the types of operations and workstations. Often it is found an error, after completion of verification and closure period, and most of the questions that arise in such situations are related to the possibility or impossibility of recurrences in one month off. The answer to these questions is yes, meaning that a complete ERP system allow the reopening of a closed period, but it should be noted that this is not recommended, since it is possibile that a user enter accidentally an operational document into the system, that will unwanted reflected into accounts balance. What is important to know about an ERP is that much of the month closing specific checks are automated, with the possibility of adding new checks when they are needed or requested by the client. A certificate account may be grouped at the type of transaction, document or detailed document, the balance may be issued on each workstation, and accounting transactions in foreign currency is disclosed in reports.
An important component of the finance department is pursuing a cash-flow accounting, for this reason any ERP system containing a treasury module. This module verifies any specific operation, from banking and household operations to endorsement checks.
For those reasons, the implementation of an ERP solutions in companies who really want to perform is a necessity and, at the same time, a means to streamline and control of one of the key departments: financial department.