How An ERP System Strengthens Financial Management
Manufacturing operations benefit from ERP software in a multitude of ways. Production efficiency, data management and regulatory compliance are just a few areas that get an automatic boost when tech solutions are at play. But here’s one that deserves a special explanation: Financial Management. Financial Management is a broad term that encompasses all financial activities within an organization — from planning, directing and controlling finances that are actual cash flow or invested funds. The day-to-day management includes hands-on fiscal duties as well as reporting, analyzing and calculating risk management. And here is an overview of How an ERP System Strengthens Financial Management.
MANAGE YOUR MONEY: STREAMLINED FINANCIAL PROCESSES
No matter the industry, manufacturers have money coming in and going out. And it’s more than just purchasing and sales, because money is also moving in the form of payroll, taxes, insurance, dividends and infrastructure reinvestment. So when an ERP system is the centralized platform on which all departments are connected, your CFO’s job is streamlined. Budgeting, planning, forecasting, payroll, AR/AP and tax management are all connected and synced in real-time. No more paper chasing and reconciling multiple sources when an ERP system syncs your finances into a single source of truth.
TIME IS MONEY: SYSTEM-WIDE INTEGRATION
And speaking of connecting all departments, an ERP system allows for all departments to be connected too. Because an ERP platform connects all your operational functions, your team can enjoy increased efficiency and accuracy. Data that is auto generated and synced across departments allows for operation-wide transparency, and it saves time and hassle that used to be spent on data entry, double checking and error correction. Not only does this optimize payroll expenses, but it also expands your operational growth opportunities. If your team members are getting more efficient in their day-to-day tasks, then there’s unlimited potential for adding new processes or tackling new roles to elevate the operation. Time is money, and an ERP system gives you more opportunities for both.
POISED FOR GROWTH: REAL-TIME MANAGEMENT EQUALS REAL-TIME DECISION MAKING
Because most business decisions are based on profitability, finances have to be clear and accessible for decision makers. Having financial management integrated into your ERP platform ensures that accurate financial information is right at your fingertips right when you need it. Budgeting, forecasting and resource allocation are informed through a whole-system lens, and operational decisions become more proactive and less reactive. This integrated financial management style is great no matter what stage of development you find yourself in — whether you’re cost cutting in a market downturn or you’re scaling up in a timely growth spurt. And best of all, when your finances are integrated into a dynamic ERP system, scalability is built-in. A best-in-class ERP partner is constantly customizing to market trends, agency regulations and tech innovations, so as your business grows, your ERP platform is built to grow with you.
A trusted ERP system strengthens your operation at every level — on your production line, in your administrative offices, and most importantly, in your financial ledgers. By streamlining all aspects of your business, your people, your product and your bottom line will reap the rewards.
Want to dig into more financial strategies? Check out our recent blog, Financial Solutions for Manufacturing Operations.
