6 Benefits of Using ERP Software correctly

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The need for a company to compete globally is ever increasing, with this the demand for accurate accessible data is on the rise. Businesses are now relying on Enterprise Resource Planning (ERP) systems more than ever to enable them to have the ability to access their company’s data effortlessly; this is now a software application that has become priceless to many small, medium and global organizations around the world. ERP software allows users to manage large quantities of data on the internet, providing access to files around the globe, regardless of user’s destinations.

The need for ERP systems in different industries has grown over the past decade with more and more industries now defendant of the software, the software is now used as a single and multi-department tool in online sales, accounting, customer relations and manufacturing. The software is only as good as the user using it, but a good system is not just great for a business; it can be great for their customers also. Take a look at the benefits of using Enterprise Resource Planning software correctly:

1)Promotions 

A great way to attract your audience to your product or website is to undertake some promotional activity. Not many business utilise the promotional aspects of ERP’s as they feel that it is more suited to important tasks such as inventory managements and payroll, however the use of an ERP system can be beneficial to many departments such sales/marketing department. The system holds all your customers data enabling you to manage loyal customers and potential customers promotions easily. The software provides you with a platform to guarantee you remind your customers that you exist and you have goods they desire/need. Whether you use direct mailing or email marketing, you can have the customer information readily available to let them know about any future promotions or press releases.

2) Data Organization 

The failure to organize data can cause someone a major headache if you staff are reliant on that unorganized data, it can distract users from their current work as they have to spend time smoothing out that bumpy data. Unlike traditional methods of data management ERP allows users to have all of your businesses invoices or tax information in one place, making it easy for multiple users to check, manipulate and cross reference vital information and data. All businesses are reliant on their accountants or accountancy departments to keep all the books in order and have all your invoices stored correctly at your fingertips to make the hassles of invoicing disappear.

3) Payroll 

An essential and vital role of a business, usually undertaken by the HR or in smaller businesses he accountants department. Having an effective Enterprise Resource Planning system in place enables your responsible department to streamline with the different documentation that they work with every day, making payroll and other HR related tasks easier and stress free. ERP systems can also help with any 401k options, benefits and diversity within your business.

4) Supply Chain

Keeping track of customer orders is vital, especially when you are operating online, nationally or internationally. The supply chains in many businesses are complicated and without daily organization they can become inefficient and unmanageable, leading to lost business and unsatisfied customers. Knowing when a special order needs to be sent or when goods need to re-ordered are just a few essential activities that need to be managed to keep your business running smoothly. If you don’t know when you’re receiving your deliveries, how much stock costs or you are failing to send out shipments you don’t have an affective system in place. Multidepartment ERP systems need to be effectively used and managed to ensure your supply chain is running efficiently, having someone who is competent with the system is highly advisable.

5) Inventory

You may find that not many employees like to do inventory, but it’s a necessary requirement for many business. If the process is not carried out correctly your business can suffer dramatically, knowing what you have in your store/warehouse and what you need will keep you and your employees happy. The ERP’s system can provide your business with reports if you require data of specific products or if you need to order new stock, this can cut down on the time it takes to gather inventory information by hand.

6) Accuracy

The need for accurate information in accounts management and inventory management is essential, without accurate data your business will be left to estimate inventory or invoices, potentially leaving your business to suffer. The ERP software gives businesses the potential to project sales and data aids when you are looking to expand your business or look into your products or services. If you have different departments dealing with money, an ERP system can combine all of the departments so everybody is on the same page.

ERP software for the Accounting Department

All companies across the world are constantly striving to minimize overheads and non-vital extra expenses. At first a company will look at the overall practices of the business to see if there are any more efficient ways to perform certain tasks in order to save on time and costs. When these businesses take a look at their internal information processes, they can see that there are more efficient ways to handle information flow throughout the whole company that can accomplish their goals.

One software system that enables a company to integrate all departments’ data allowing a smooth flow of information between them is Enterprise Resource Planning (ERP); an integrated system that runs in real-time and flows with consistency throughout each module. Facets of the ERP system include: data services, finance / accounting, HR, customer relationship management, supply chain and manufacturing.

For the accounting department alone, ERP has countless benefits. The ability to support budgeting, consolidation, cash management, general ledger, fixed assets and accounts payable / receivable to mention a few. Many accounting software’s can achieve these types of functions, but with the integration of ERP, this data and the system is able to look to similar systems throughout the company – a feature that other accounting software’s are unable to do. When a different department accesses the accounting software, they will find a similarity in layout to their own and find it much easier to navigate. This familiarity makes the system far more efficient and time effective.

The accounting department can really benefit from an integrated system such as this as now they can access information such as invoices, costing, purchasing and payroll data in an instant. This makes it easier for them to perform their monthly, quarterly and annual tasks because they no longer have to wait for the information to be provided to them by other departments.

This new way of accessing data eliminates the requirement to print and deliver the information that then usually would need to be re-entered, risking errors and costly mistakes.

It is essential that for a fully informed accounts department, the business must have good ERP software implemented. Good ERP providers will be able to provide customer service support to the accounting department in order that the IT department can easily manage. As many of the ERP systems are implemented company wide, it is important the ERP provider can work with the accounting department as well as with the IT department ensuring all needs and functionality are easily met.

An efficiently working accounts department can have many tasks such as inventory audits eliminated as the ERP system can provide information and answers at the click of a button. No longer is there the need for costly and time consuming tasks such as inventory, transaction processing or employee pay. This enables the department to be far more efficient whilst saving the company money.

A business looking for a way to keep all departments working together and fully informed should look to implementing ERP. A good ERP provider with an excellent reputation can guarantee improved efficiency and cost savings. The peace of mind that the business needs knowing that this is all being handled in an efficient and cost effective way is priceless.

Rashed Khan hold an MSc in Software Engineering and enjoys guest posting on business/technology related topics.