Learn how ERP accounting software beats standalone software for your operations, integrating workflows that streamline finances and boost efficiency.
Accounting functions are usually the first processes automated when establishing a business. Modern accounting software is indispensable for businesses seeking to easily track and execute financial operations.
Similarly, enterprise resource planning (ERP) software is essential for businesses seeking to streamline and unite operations into one, central platform. By integrating front-office activities with back-office processes, ERP software drives efficiencies that are both practical and powerful.
ERP accounting software goes beyond basic functionality, offering an all-in-one solution that combines real-time financial data with operational insights. This integration enhances workflows, boosts accuracy and empowers better decision-making across the board.
This article explores how ERP accounting software enables organizations to eliminate work silos and foster better collaboration to achieve optimal business outcomes.
Contents
What is ERP accounting software?
How does ERP accounting software work?
Benefits of using ERP accounting software
Features to look for in ERP accounting software
ERP accounting software is an essential component of an ERP system. It manages an organization’s financial processes, including:
ERP accounting software integrates with other ERP applications, such as inventory control, supplier management and shop floor operations. These integrations ensure financial data flows seamlessly across departments, allowing a business to eliminate duplicate efforts and ensure data consistency across the organization.
ERP accounting software creates efficiencies by automating accounting processes and connecting them to other enterprise activities, such as sales and purchasing.
Outside of automating and connecting disparate accounting process, some of the best features of ERP accounting software involves integration with other ERP applications, including:
Inventory management – Inventory data is electronically supplied to accounting functions, so that all assets are properly accounted for, whether they are purchased items, work in process or manufactured assets. Automated inventory management helps businesses make more impactful decisions regarding demand planning and financial forecasting.
Purchasing – Purchasing applications communicate with ERP accounting software to manage purchase orders, invoices and payments, automatically tracking expenses and ensuring compliance with budgeting rules. This provides increased traceability that includes transaction timelines and a complete audit trail.
Sales – ERP accounting software integrates with system sales functions, enabling efficiencies such as the ability to digitally convert a sales quote into a sales order. Invoices can also be processed electronically, improving cash flow and automatically applying cash receipts and credit memos to invoices. Businesses can easily track accounts receivable and sales income.
Manufacturing – ERP accounting applications connect with production modules to track the financial impact of manufacturing activities, such as materials use, labor costs and overhead. This provides more accurate product costing, improving pricing strategies and profitability analyses.
Supplier Management – In addition to seamlessly managing purchase orders and supplier invoices, ERP accounting software enables users to track supplier pricing and performance, maintaining a database of supplier metrics to analyze performance and more easily identify cost-saving opportunities.
Reporting and Analytics – As a single-source of truth, data from all ERP modules is aggregated into ERP accounting software to produce consolidated financial reports and ensure regulatory compliance, streamlining the audit process, improving transparency and reducing the risk of noncompliance.
Stand-alone accounting software provides an electronic platform for financial management and is a great starting point for smaller businesses seeking the efficiencies of digital spreadsheets and invoicing. But growing businesses should keep in mind that independent accounting software requires manual intervention to update financials for important business functions, such as inventory.
Most stand-alone accounting systems can’t handle lot-based or serialized inventory, including associated costing functions. This requires monthly journal entries to ensure that inventory is properly accounted for, including your cost of goods sold. This manual intervention means that a business’ financials are never available in real time. It also means that they must be interpreted without the benefit of integration to other enterprise functions, such as purchasing, job management and sales.
ERP systems provide that scope in one centralized platform, performing accounting tasks and also providing the ability to automate and integrate data and processes across the enterprise. This creates numerous efficiencies and boosts accuracy.
What’s more, modern ERP accounting software is often delivered via the cloud, giving users access to real-time information at any time, from anywhere and on any type of device with an internet connection. Cloud-based ERP systems tend to be more economical, since the provider hosts and maintains the system, shouldering that financial and human resource burden for a business.
Many businesses have already embraced accounting software for the many efficiencies it offers. The integration of accounting functions with other business processes, as seen in ERP software, go above and beyond the features of standalone accounting software.
Implementing ERP accounting software offers efficiencies that not only make work easier, but that also improve your business’ profit outlook. From simple electronic notifications to mobile accessibility, utilizing ERP accounting software offers numerous advantages, including:
The integration of accounting with other modules eliminates the need for redundant data entry, saving time and resources.
Centralized data and streamlined systems allows for better collaboration across departments and office locations. Real-time data helps ensure everyone is working with the most current information, improving accuracy and outcomes.
By automating data entry and reducing manual processes, ERP accounting software minimizes errors, ensuring accurate financial records.
With up-to-date data, businesses can generate real-time reports, enabling more informed decision-making and quick responses to financial challenges.
ERP accounting systems support adherence to industry-specific regulations and relevant tax laws, reducing the risk of noncompliance.
With centralized financial data and automated reporting, auditing becomes more straightforward and transparent.
Every organization must evaluate its current and projected operational requirements to determine what ERP platform is best suited to their needs. Outside of basic ERP software applications, other significant features to look for in ERP software include:
To make the most of ERP accounting software, organizations should be sure it integrates seamlessly with other ERP modules, with the ability to dynamically populate data across applications. This provides a centralized platform that operates with the most relevant data, ensuring all departments are working with the most current information, while fostering agility during changing business conditions.
Scalable ERP accounting software allows businesses to integrate functions at a pace that makes sense for their unique needs, offering additional functions pertinent to a growing business, such as advanced reporting or material requirements planning (MRP).
A clean and intuitive interface supports ease of use, reducing the learning curve for your team and improving user adoption. This often includes easy-to-understand dashboards that allow users to track status at a glance and simple implementation, as well as conveniences such as electronic notifications and approval processes.
Today’s cloud-based ERP platforms make software implementation and updates easier than ever. It also saves your company from having to employ personnel to maintain the system. Out-of-the-box ERP systems that offer pre-built modules and features are ready to deploy as soon as the user is ready. Look for out-of-the-box solutions that match your needs from the start, as customization is usually limited.
The support provided by an ERP software provider is integral to the continued success of its use. Whether it’s in-person or internet-based consultations, a library of templates and documentation or how-to videos, look for the kind of ERP software provider that offers support that fits your needs. Any provider worthy of your business will offer support for its product throughout its use, from implementation to everyday use.
ERP systems provide a single source of truth for all operations, giving employees and management real-time information about key business processes. This comprehensive view enables management to make informed decisions faster. With advanced reporting and analytics, businesses can easily identify trends, predict potential challenges and make proactive adjustments to improve performance.
There are many pricing models used by ERP software providers. Make sure your business’ needs are covered by the core applications provided and be aware of which applications are add-ons and at what cost. An out-of-the-box solution can provide robust applications while saving money for your organization.
QT9 ERP accounting software is a comprehensive system that can work for any size company, in any industry. QT9 ERP improves efficiency and accuracy through integrated data and automated operations, all without breaking the bank.
QT9 ERP provides more than 17 modules as part of its standard offering, as well as easy access to data and analytics to help businesses make the best decisions for moving forward. With QT9 ERP you get:
QT9 ERP also offers electronic batch record (eBR) and device history record (DHR) applications to address the needs of life sciences companies. Our ERP system lets you configure processes to best meet your needs and is highly scalable, so you can implement at your own pace.
Whether you are a growing business transitioning from standalone accounting software or an established enterprise seeking to optimize processes, ERP accounting software offers scalable solutions tailored to your needs. With features like cloud-based accessibility, advanced reporting and seamless integration, ERP systems, like QT9 ERP, empower businesses to navigate challenges, ensure compliance and achieve long-term success.
Reach out today for more information about QT9 ERP.
Enterprise resource planning (ERP) software can create efficiencies that help small businesses eliminate unconnected software applications.
ERP software enables life sciences companies to ditch siloed operating systems in favor of one system that centrally manages all business processes.
Your guide to finding the best enterprise resource planning (ERP) software. Learn about the key features and benefits of the best ERP systems.