This is the second part of a series of blog posts on automating and streamlining routines between finance and ERP. In this blog post, we look at the core functions of financial management as an integral part of an ERP system, and the benefits it brings to routine work.
In the first part of the blog post series we looked at the issue from the perspective of integrating financial management systems into an ERP system using the IPa by Pinja integration platform.
The main task of an ERP system is to provide the tools to manage and develop the company’s activities. When choosing the right ERP solution for your business, it is often essential that the system includes the key functionalities of financial management. The financial monitoring of contracts and projects is closely linked to the business, and is part of the practical daily management. Seamless cooperation between production and financial management frees up a significant amount of time from management to the development of the competitiveness of the company.
In ERP systems, financial management usually refers to creating and sending sales bills, monitoring payments, recording and processing purchase bills, and monitoring project budgets and financial reporting, which is increasingly performed with BI tools. Integrating financial management into an ERP solution makes practical management more accurate, real-time, and efficient.
In Pinja’s Total ERP solution, financial management is an integral part of the ERP package. Therefore, it helps to improve both project management and financial management, as well as speeding up decision-making and reducing billing errors.
When financial management is a part of an ERP system, you can achieve benefits such as:
Since the key task of an ERP system is to optimize the business rather than accounting, it is not necessary to include accounting in the ERP. Modern accounting systems follow industry practices, and are easy to integrate, and have their own loyal users in accounting firms. The Total ERP solution has ready-made integrations with the most common accounting software. The integration allows bill and payment information to be transferred in real time between the ERP financial management tools and the accounting solution.
In many industries, the overall solution also includes work carried out by subcontractors. In the construction sector, for example, deliveries often include installation work performed by subcontractors. Pinja’s Total ERP solution allows the company’s subcontractors to use the system with their own subcontractor accounts.
When the employee signs off the work in the system, the bill for the work is authorized. Any specifications and documents containing additional information are also included in the bill, making it easier to check the rows of the bill, and to process and approve the bill in the recipient’s system. In delivering the work, the subcontractor can also create an invoice for their own work within the system to the company responsible for the delivery by updating the planned entity with realized and checked information.
When the person performing the work signs if off and provides additional information, the number of errors is reduced, and bills are not returned due to incomplete information.
A flexible ERP system adapts to your business processes and financial management models – not the other way around. A comprehensive ERP offers both flexibility and efficiency in the interplay between financial management and production. When choosing an ERP system, it’s a good idea to ensure that it offers functionalities that significantly streamline financial management.
Pinja’s Total ERP solution
Blog: Competitive advantage through integration of financial management with ERP systems
Blog: What are the benefits of effective order and contract management?