Strategic financial planning and analysis plays a vital role in budget allocation and maintaining business continuity for any organisation. Using ERP systems helps in accurate financial report generation and can seamlessly synchronize billing.
A cloud-based system like https://www.netsuite.com.au/portal/au/products/erp/financial-management.shtml offers data analytics tools that provide a detailed insight into finances. It helps in efficient decision-making for streamlined business processes.
Benefits of cloud-based ERP systems
According to recent reports, the global cloud-based ERP systems software market value will reach around $ 40.5 billion by 2025. It is expected to increase at a CAGR of 13.6 per cent during 2019- 2025. Online data management systems use such web-based software to store and analyse information.
A cloud-based data management solution for financial services gathers money-related data and helps in report generation. It helps to streamline, simplify, and automate financial business processes in the organisation. Here are few benefits of using web-based financial management solutions:
Financial Transparency
An online financial management system will have a user-friendly, interactive data analytics dashboard. It provides centralised and transparent access to cash flow within the organisation.
Improved Business Performance and Agility
ERP systems help with automated financial consolidation, offering real-time report generation. The agile system supports multiple management hierarchies with accurate information.
Automated Data Planning and Budgeting
Cloud-based ERP systems come with powerful predictive analytics tools that help in forecasting expenditure and allocates the budget accordingly.
Easier Integration Facility
A web-based finance module can be easily integrated with an organisation’s existing data management systems. It can include CRM, order management, and inventory control. It helps in streaming complex business procedures.
Added Security, Flexibility, and Scalability
Cloud-based ERP systems are highly flexible to changing business needs in large-scale companies. They deliver high-volume scalability for intra-company accounting and revenue generation. An online financial database is built within state-of-the-art data centres. The global revenue model is a monitored high-level security system, with a real-time financial monitoring system.
Accounts Regulatory
A cloud-based data management system finance comes with a Governance, Risk, and Compliance (GRC) solution. It governs the internal audit process in compliance with international IT and security standards. Also, the system provides an effective enterprise and financial risk management system to avoid unnecessary expenditure.
Automated Billing System
Integrated with a customer relationship management system, cloud-based finance ERP systems help in automated payment and billing systems and makes revenue management a more effortless and error-free process.
Synchronizing the billing process
A billing management system can be integrated with cloud-based sales and financial ERP systems. It helps in flexible scheduling of billing according to the items lined up for sales. Here’s how synchronising an automated billing process in a web-based ERP suite helps organisations effectively.
Generation of a Unified Billing Outline
An IT solution provider helps in generating a unified billing design. It helps organisations build a robust billing and revenue management system following industry-specific compliance and regulatory standards.
Automated Subscription Billing System
An agile cloud-based ERP solution simplifies complex business procedures across multiple customer touch-points. It allows for easy creation and maintenance of revenue-based billing processes regularly for customers. It is called an automated subscription billing system. The system also handles customer contract changes, billing cycles, renewals, and subscription extensions efficiently.
Consolidated Invoicing System
A robust web-based ERP financial suite will improve customer satisfaction by providing a clear and accurate invoice. It offers customised pricing models with comprehensive discounting features for individual customers. This value-based, advanced subscription billing model reduces overhead costs of manual invoice generation. It ensures an error-free and secured billing system.
Integration with Revenue Recognition Module
A revenue recognition management system helps schedule sales transactions under accounting standards like ASC 605, 606 and IFRS 15. You can integrate the billing process with the revenue recognition module by selecting a web-based data management system. It helps forecast future billing schedules for loyal customers.
Comprehensive User Data Management
An ERP system on the cloud captures, streamlines, and combines user data related to pricing and charging. It displays the graphical workflow of transactions within the system. Also, it gives agents a simplified and transparent view of financial customer data.
Organisations can use intuitive APIs to manage customer-specific allowances. They can offer a personalised credit management system for payments and receivables for high-volume transactions.
Scope of ERP systems
ERP systems are structured on several levels. An ERP system therefore consists of several modules, all of which access standardized master and transaction data. A homogeneous IT system based on a uniform database can therefore be set up with an ERP solution .
The range of ERP modules ranges from small software packages to specific industry solutions to extensive, individually adaptable software applications. ERP modules are used to optimally adapt the software to the individual needs of the company in order to provide a tailor-made solution.
Some examples of ERP modules are purchasing, sales and marketing, finance and accounting, controlling, production, materials management, human resources, service and support, and warehouse management and logistics.
Introduction of an ERP system
Important factors for the introduction of an ERP software are the selection of the right ERP system, good project preparation, a dedicated project team and a systematic software introduction. The use of an ERP system must be checked at all levels – from management to the user, as in an entrepreneurial project. The process is divided into several phases.
Special skills are required in each phase:
- Preliminary investigation: definition of the project management rules, examination of these rules and definition of the functional requirements. This phase requires functional and technical skills. Often consultants are used who work closely with the employees from the respective specialist departments
- Development / adjustments: Creation of an overview of the relevant adjustments
- Preparation and execution of tests (integration tests, process tests)
- User training and preparation for the changeover
- Change from the old to the new system and check the correct data transfer
Final Thoughts
Deploying a cloud-based ERP system for handling financial data in your organisation can drive sales with easy order generation. Improved billing capabilities can simplify customer management systems. Automated financial reports can help analyse and manage the flow of money within different departments.
