Does your organization still rely on excel for managing critical financial processes, accounting, and other reporting activities? Are you experiencing financial irregularities and difficulties in keeping track of accounts payables (AP) and receivables (AR)? Are cash flow blockages putting your business at risk? Then it’s time to get an ERP System for Finance Management up and running!! Download the below whitepaper to know more.
A successful business cannot scale up on spreadsheets. As each department in a business manages excel sheets individually, updating them is not only time-consuming, but also fails to give you accurate information and this might put your company in a financial bind. Furthermore, manual data input techniques are prone to discrepancies and errors leading to compliance issues. This is where ERP (Enterprise Resource Planning) software can help. Finance Management is at the heart of ERP systems, which bring together a range of business operations, all under a single system. ERP enables seamless data transfer across business functions in real-time through a central database accessed by all departments and allows you to make sound decisions and increase productivity. In this blog, we discuss the need for an ERP for financial management, the modules in financial management ERP systems and the 8 best ERP systems for financial management.
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What makes an ERP a superior financial management solution to a typical accounting system?
There is a prevalent misconception that ERP and accounting software do the same things. However, finance and accounting software is only a subset of an ERP system. It’s critical to recognize important differences between them:
1. Traditional accounting systems such as Tally and QuickBooks address only the basic financial activities like managing accounts payable and receivables, invoicing, financial reporting, etc whereas an ERP is capable of handling accounts, inventory and supply chain management, warehouse management, and CRM within a company.
2. Accounting software, in comparison to ERP, has fewer industry-specific requirements. One of the reasons 64 % of businesses want to deploy ERP within the next three years is because of this.
3. Accounting software can maintain a database of a company’s financial information and generate reports based on that, but it lacks the robust central database system for all business data which an ERP can provide.
4. A comprehensive ERP system enables you to be compliant with accounting standards like GAAP (Generally Accepted Accounting Principles), IFRS (International Finance Reporting Standards), etc. Whereas, many accounting software packages do not meet GAAP or IFRS compliance criteria.
What is an ERP Finance Module?
An ERP finance module enables an organization to effortlessly manage the accounts and finance-related activities in a unified manner. It is capable of processing transactions such as reporting expenses and invoices in addition to keeping normal account information. Organizations can have better control over expenses and cash flow using ERP financial modules.
Key features of the ERP finance module
The ERP finance module handles the organization’s primary accounts and finance management activities such as maintaining General Ledger (GL) and balance sheets, generating Accounts Payable (AP) and Accounts Receivables (AR), tax management, payroll management, budgeting and forecasting, risk monitoring, reporting and many more.
Top ERP solutions for financial management
Which ERP is ideal for your organization depends on your business needs and preferences, but to make the process of choosing the best ERP for financial management easier, you can look at these top ERP alternatives available in the market today. We’ve structured the list alphabetically below.
The Financial Management suite from Acumatica is comprehensive and includes a whole suite of accounting tools for tracking your company’s financial health, operations, and creating financial statements. It also provides features for managing conventional financial processes like (GL/AP/AR), and tools for reporting, budgeting, analysis, and planning. The software has been recognized as a ‘leader’ in IDC Marketspace’s 2020 vendor evaluation for global SaaS and cloud-enabled midmarket finance and accounting solutions and ‘Visionary’ in Gartner’s Magic Quadrant for Cloud Core Financial Management Suites for Midsize-large enterprises.
Epicor ERP system’s financial management solutions range from simple accounting to complex analytics and are designed to help you streamline your financial business processes while increasing visibility and control. Other than the traditional accounting features its financial management suite provides capabilities to manage inter-company transaction processing, compliance management, lockbox functionalities, credit and collection management, forecasting, planning, and many more. Epicor also supports a multi-company setup that helps with intercompany transactions and financial consolidation at a group level. The software has been shortlisted by the Constellation Enterprise Cloud Finance report and has also been categorized as ‘visionary’ in Gartner’s 2021 Magic Quadrant for Cloud ERP for Product-Centric Enterprises.
The IFS financial module provides you with a comprehensive picture of your company’s finances from various perspectives, allowing you to gain greater control at all levels of your organization and meet regulatory and compliance requirements. The software offers several features to optimize financial processes like cash flow management, accounts payable, business planning, accounts receivable, invoicing, fixed asset management, general ledger and consolidation. IFS software has been named as a leader in 2021, IDC MarketScape Report.
SunSystems by Infor is a financial management software that gives you immediate access to all finance and accounting data, thereby allowing you to make quick, informed decisions. It can easily integrate with other IFS platforms and includes a spectrum of capabilities for managing project financial control, maintaining operational performance, performing strategic forecasting and end-to-end accounting support. It has been positioned as a Niche Player in the Magic Quadrant for Cloud Core Financial Management.
Many of the functionalities are divided into two modules Dynamics 365 for Finance & Operations and Dynamics 365 Business Central. Both are perfect for companies that need financial management skills and wish to combine their back-end and front-end activities in one place. Some of the top features include fixed asset accounting, complex GL capabilities, purchase and account payable/ receivable, financial analytics and reporting, project costing, and business unit focus. The software has been categorized as ‘Visionary’ in Magic Quadrant for Cloud Core Financial Management Suites for Midsize, Large and Global Enterprises.
Oracle NetSuite is categorized as a ‘Leader’ in both the Magic quadrant and IDC Marketscape reports. Other than the basic finance & accounting features it offers several other financial capabilities like revenue recognition, financial planning & reporting, global account management and consolidation, GRC(Government risk & compliance), and seamless integration with other modules.
7. Sage Intact
Categorized as a ‘Leader’ in the G2 Non-profit accounting grid and ‘Visionary’ in for Cloud Core Financial Management Suites for Midsize, Large and Global Enterprise report, Sage Intact is a robust software targeting small and lower midsize enterprises. Its cloud-based financial management solution is designed for companies seeking enterprise-level solutions for everyday operations. The strength of Sage Intacct is its comprehensive accounting capabilities, which can automate processes, maintain GL and balance sheets, financial reporting, inventories, tax management, compliances, and many more.
The Constellation positions SAP as a ‘Leader’ for Enterprise Cloud Finance and Gartner as a ‘Niche player’. It’s Financial Planning and Analysis (FP&A) software provides features like treasury management, GRC and cybersecurity, accounts receivable, billing, revenue management, accounting and financial closure, and financial planning and analysis. Such capabilities can assist customers in making better business decisions, maximizing performance, and navigating unforeseen economic trends.
Accounting software is used by a majority of businesses but the importance of an ERP in financial management cannot be understated. It provides a 360-degree perspective of an organization’s financial operations, allowing users to assess its financial status, track expenditures, calculate revenues and maintain control over all financial back-office processes.
The ERP industry is dominated by a dozen of suppliers who offer a variety of capabilities for managing finance and accounting activities for organizations of all kinds, from small businesses to major corporations. The vendors mentioned in this blog are the most popular ones, but you can always choose the right ERP software for financial management by analyzing your business requirements and aligning the features offered by the vendor with your business objectives.
If you’re still undecided on which ERP financial software to use, then feel free to contact us. Our experts can help you.
New implementation? Upgrading your existing system? Evaluating ERP Vendors? we got you covered. Download our Whitepaper on Choosing Your ERP System in 2022 below to know more!