ERP Solutions for Finance and Accounting: An Overview
For the continuous growth of the business, a change is vital. Every business faces changes. It could be a technological change, team change, economic change or any growth-related change. Change in business is necessary for innovation, addressing risks and searching opportunities. If your business process or system is not designed to accommodate such kind of change, then you may lose strategic focus and business opportunities. One of the most positive changes in an organization is adopting the right ERP solutions, especially when it comes to financing and accounting. So, for the change in the right direction, it is necessary to choose the right ERP solutions for finance and accounting.
Are your employees tired of spending hours on updating spreadsheets? Is your business lacking strategic value? Are you tired of facing the limitations of your inflexible system? If yes, then maybe it’s time for a new finance and accounting solution. Choose ERP solutions that provide instant access to financial data.
However, implementing or upgrading to new solutions can be challenging for business. Don’t worry, we are here to guide you. Read our blog further to know the strategies for choosing the right ERP solutions for finance and accounting.
Steps to choose the Right ERP Solutions for Finance and Accounting
1.) Examine a Change
It is the foremost step in the journey of choosing the right ERP for finance and accounting solutions. There are a plethora of red flags that signal issues with the current systems but some are worth noticing and need immediate attention.
Listed below are some of the issues. If you are dealing with any of them, then it’s time to evaluate or choose a new ERP solution for finance and accounting.
- Increased use of spreadsheets with limited functionality
- Shortage of real-time access to financial data
- Limited visibility to manage cash and budget accurately
- Minimized ability to offer strategic vision
- Reduced user satisfaction and productivity
- Limited integration between systems
2.) Define Functional Requirements
Once you get comfortable with the idea of change, then it’s time to figure out your functional requirements. Make sure whichever ERP solution you choose for accounting and finance it should have the ability to fulfill the needs and requirements of your organization.
No doubt you will do an in-depth analysis and real-time insights, but below we have listed the core processes of accounting and finance that your ERP system should manage.
- Fund accounting
- Finance and management reporting
- Revenue management
- Period close
- Project management
Some other capabilities to look for:
- Multiple entries and real-time consolidation of data
- Real-time regulatory and compliance reports
- Multiple operating dimensions for transactions
- Multiple ledgers to process transactions
- Custom dashboards and self-service reports
3.) Define Technical and Operational Requirements
Now, it’s time for you to choose whether you want to go for an on-premise or cloud-based solution. This totally depends on the demands of your business.
Choosing a cloud-based solution will be a better option. The reason being ‘it reduces IT costs, enhances productivity and minimizes the technology risks.’ With the cloud, you also have the flexibility to easily integrate with leading software solutions to address your business needs.
4.) Time to Evaluate
By this time, you will be familiar with all the key requirements. Now, you need to access which product/solution will be the right fit for your business.
Here are some tips for your evaluation process:
- Create an RFP (Request for Proposal) and include unique business requirements in it.
- Prioritize the necessary capabilities
- Check references
- Look into cloud vendor’s business practices and infrastructure
5.) Identify ROI Opportunities
Now, it’s time to identify the ROI (Return on Investment). Mostly cloud-based solutions for financial and accounting systems achieve 75% to 300% annual ROI.
Let’s Wrap it Up!
Evaluating, choosing and implementing ERP solutions for finance and accounting is a necessary decision for your business. It will make things in the future easier and if the choice goes wrong, it may even harm your business. Therefore, choose wisely and enjoy the long term benefits.