Enterprise resource planning (ERP) system is the backbone of all organisations, and accounting software is the cornerstone of ERP. ERP for accounting creates a single source of financial data accessible across departments and multiple business units. It integrates finance and accounting, inventory management, project management, customer relationship management, human resources, etc. ERP software, such as TallyPrime, also helps an organisation achieve greater visibility into its finances, enabling them to make better decisions that drive business growth.
Key Benefits of ERP for Accounting and Financial Management
1. Improves Workflow
The first key benefit of ERP software is improved workflow. By improving how you manage tasks, do calculations (particularly asset tracking), and other business functions, ERP systems for accounting can help streamline your internal processes. In particular, they can enable teams within companies to work together more effectively.
This is very useful for small businesses and large enterprises when integrating accounting functions into new systems or moving from one system to another (such as between ERP systems).
Smaller businesses, for example, might need workflow improvements to streamline collaboration between the team. Here, a single Tally accounting system can be useful. Larger enterprises can also benefit from improved workflow, not just for routine tasks but for special projects or projects with unique requirements.
2. Enforces Best Practices
New and existing ERP software customers are rapidly discovering the benefits of increased efficiency and productivity through integrated financial management and accounting system. The “best practices” approach in Tally software implementation has many advantages over traditional accounting systems, including:
- Rapid, cost-effective implementation
- Greater user satisfaction
- Improved operational efficiency
- Increased profitability
Tally.ERP 9 (TallyPrime) software is the platform that offers all these benefits and more. Plus, Tally can be customised to suit individual business needs.
3. Facilitates Better Financial Management
The software solution Tally is the top ERP accounting software in the global market, which provides a complete solution to address all financial management needs. This program is easy to use and navigate. The software includes a user interface that offers multiple views about the company. It also has an integrated list of reports, charts, and dashboards with powerful filters for you to make decisions quickly. These features provide different perspectives about your company’s financial performance and allow you to identify trends on specific metrics.
The Tally accounting system is an ideal accounting & financial management system for managing companies’ assets, liabilities, income, and expenses. In Tally accounting systems, the entity processes transactions through a centralised record-keeping system. The central ledger represents the company’s credit and debit accounts, the assets and liabilities of a company. This central ledger often called the “Tally book”, is used to record transactions internally and externally.
Read: How to Access TallyPrime Remotely and Essential Features to Protect Your Data
4. Improves Business Performance
As more and more companies adopt Enterprise Resource Planning (ERP) software, the market for this type of system is beginning to gain momentum. ERP system is a business management software that integrates all functional areas of an organisation into a singular system. This is a complicated process that involves a change in culture, data sharing, and more. The key to success is getting the software to its end-users. ERP software helps businesses by automating many of their routine business tasks to focus on higher value-added activities.
ERP for accounting also helps with forecasting and planning by connecting the different departments in an organisation. ERP systems are responsible for the internal processing of data and help bring it together in a way that helps each department make better decisions.
Businesses can use ERP systems to provide insights into how an organisation’s decisions affect its customers and employees, providing information often referred to as ‘360-degree feedback’.
This enables an organisation to manage business operations smoothly, integrating all the functional business areas, business processes, and key performance indicators for operations, finance, logistics, human resources, customer relationship management, and more. ERP systems are thriving in business today and are used by many companies, from start-ups to global giants.
Read: Comparison Between Tally.ERP 9 and TallyPrime
5. Lowers Costs
Accounting and finance departments have a vital role in the ongoing development of a company. These departments are responsible for recording, reporting, and analysing financial information, ensuring that the company’s financial & accounting policies are followed, and the company complies with relevant regulations.
- The finance department is responsible for ensuring the company’s financial assets and liabilities are appropriately monitored, accurately recorded and correctly managed.
- They are also responsible for ensuring that all accounting, tax, and reporting rules are followed in accordance with the set guidelines.
- They may also be in charge of monitoring the company’s internal controls. This can be an incredibly complex and time-consuming task, particularly for smaller businesses where there may not be a dedicated finance manager.
Thankfully, specific ERP accounting solutions such as Tally.ERP software (Auditor’s Edition) exists that can help these departments work more efficiently and help reduce costs for organisations.
Internal Audit is verifying and inspecting the company’s compliance with laws, policies, procedures, and standards. Internal auditors may be employed by the company or an external auditor hired by a third party to review an independent audit on behalf of their client. All ERP systems are designed to ensure compliance with internal control guidelines and help to prevent fraud.
ERP accounting and financial management systems are integral to running a successful business. They help you track your company’s expenses, income, and other strategic areas. With all these processes coming together, ERP facilitates decision-making by optimising the workflow. Moreover, ERP also helps create and maintain critical documents such as sales contracts, purchase agreements, purchase invoices, etc. It ensures that all legal requirements are met by maintaining the requisite documents. Plus, it offers real-time, seamless access from multiple devices, giving users a clearer insight into their business operations.
Get in touch with us to know how TallyPrime can help you streamline your business accounting and finance.