This blog post highlights effective ways to improve business compliance through ERP implementation.
You could be scratching your head and wondering what an ERP (Enterprise Resource Planning) program is all in compliance with different departments. Let us take an example of an accounting department which is a common department in all enterprises. There's quite a lot of things. It is one of the best ways to facilitate compliance, as it increases your data 's visibility, security and traceability.
Despite the fact that an ERP can not guarantee compliance, it is an invaluable asset for any company trying to achieve consistent compliance. Accounting guidelines are revised periodically to provide new enforcement rules for increasingly prevalent billing systems such as subscription billing, or complex lease management. With all these shifts, it becomes harder to check all of the boxes.
That's where an ERP comes in, reducing the amount of time the staff has to spend on activities that can be easily automated and allowing you to handle all the moving parts that end up affecting adherence by increasing productivity across the various processes in the business.
Compliance relies heavily on the ability to manage business processes visibly and transparently. One of the biggest difficulties facing companies is the accurate reporting and recognition of revenues. The growth in complex billing systems – such as milestone or usage-based billing – has only contributed to the complexities of accurate and consistent reporting.
Traditionally, this type of data could be tracked in a complicated spreadsheet network, often reliant on a small specialized team to put in long hours of manual and boring data entry (which we know can be riddled with errors because of its monotonous nature). Not only is this labour-intensive, but attempting to collect the data required to prove compliance can be daunting. These things can be simply managed by an ERP system.
Automating repetitive tasks with an ERP program not only eliminates mistakes but also frees up the staff, so they have time to triple all criteria for compliance. Compliance can be hard to prove because there are data collection and management mistakes. Often, manual data entry can lead to the kinds of errors that can trigger problems down the road.
The industry-specific ERP provides all that you need to streamline procedures and set common guidelines for how documents are processed and maintained by providing you the means. You have more control over your information, and within a single system, you can maintain historicals. Cutting down the risk of error and making the data more secure.
The ERP can eliminate even the most complicated billing processes as touched on briefly above. When you're running a variable payment model — such as usage-based, tiered, user-based, or hybrid — you can use an ERP program with built-in tools to promote compliance. Automating your processes and streamlining your data is fast and efficient for businesses that have very specific requirements
The ERP helps you to easily and effectively carry out assessments without having to try to find the right data. It not only improves the life of the accounting team during pressurized periods of the year (like the tax season), but also allows them peace of mind because they can rely on the quality and precision of the data they use. There's nothing worse than having to waste precious time and resources re-entering data which an ERP should have handled automatically and accurately.
The bigger the business gets, and the more assets you control, the more difficult enforcement will become. An ERP can add consistency across multiple entities or organizations to the records, and facilitate compliance with more accessible data. Investing in an ERP that is designed to scale as the company expands would be important to fast-growing companies that want to make sure they can easily stay up to date with the data.
Perhaps a company with a system developed for your business has collaborated with hundreds of businesses with similar needs. There will be a number of commonalities between businesses when it comes to implementation, and more so among those in the same sector. Invest the little extra to ensure that your solutions are designed to meet your industry 's demands and ensure that your accounts are in sync.
We also see businesses that have attempted to use complex workarounds for solutions that are not known to be successful in their industry. Do your homework to find an ERP that knows the business or has industry-specific add-ons to recognize the nuances you need to make clear and transparent.
We are an ERP development company that provides enterprise-grade solutions to overcome complex business challenges. Our ERP software development services enable organizations to enhance their productivity by efficiently managing their mission-critical business processes. Looking for technical assistance? Drop us a line at [email protected]