How ERP systems help you manage accounting

Companies that work by order - and therefore have to monitor multiple projects - can benefit greatly from the use of  ERP systems , especially as regards  accounting management .

ERP is an acronym that stands for Enterprise Resource Planning . These are high-level software, which optimize the management of all processes involving sales, purchase requests, accounting and so on. We can say that ERPs are a sort of  IT Software  through which the entire information, operational and organizational flow of a company passes.

The effectiveness of ERP systems is confirmed every day more. For a company,  the increase in profitability  also passes through the efficiency of managing the complex business organization and all the dynamics that dominate it.

It is precisely for this complexity that a noteworthy IT support can constitute a significant added value. Let's just think about how much it can help in reducing waste ,  costs  and  hitches  that a company can face. The ERP software guarantees a  constant flow of information  and a  perfecting of the general coordination  of all the business areas, among which we find accounting at the forefront.

How do ERPs facilitate accounting management?

The relevant aspects to consider are manifold. First of all, they allow you to have a clear and concise overview of the  margins of the various orders , which correspond to revenues minus costs. Through an ERP, orders are  associated with skills , regardless of what the individual invoices and receipts are. If normally the invoices respond to contractual logics that do not align with the costs and revenues relating to the skills of a given period, with ERP systems it is possible to remedy this problem.

Secondly, they give the possibility to  identify and isolate the impact of the indirect costs  of each order in relation to the different projects. In addition to the margins of each job, in addition, the ERPs also provide the  company margins for each competence , taking specific monthly payments as the reference point. The software, in fact, offers valuable support in determining the monthly skills of a rental contract, whether it has been invoiced or not. But it does not end there: it also helps to understand what are the  competences relating to the invoices of the suppliers  still to be received, the holiday accruals, TFR, thirteenth and fourteenth of all the human resources employed within the company, and, finally, the value of depreciation  and  inventories  at the end of the month.

Since it gives precise indications on the  costs and direct revenues  on an accrual basis in relation to a specific period, the software also allows to know  the incidence of indirect contract costs  on the various projects. This is possible thanks to the special tipping drivers; among these we find, for example, the  value of production , the costs of the hours worked by the staff for each job, the costs of the direct hours of the machines, always on job order. The ERP systems then provide a single management system, which greatly facilitates the navigation process  from summary to analytical data. Like? Thanks to the easy access to the complete documentation, which is one of the major strengths of these software.

The software allows you to have the status of the company active and passive cycle fully under control  . The advantage in this sense derives from an automation that  minimizes the margin of error . It should also be stressed that ERP systems allow constant monitoring of all events that enjoy economic importance for the company.

If accounting management is often disconnected from the company system, the ERP Software solutions in UAE, on the other hand, integrates it within the system itself. The  punctual registration  allows to promptly detect any errors relating to transactions; thanks to the automated system, the  writing of accounts  is done both on the total invoice and on the amount of expenses. As a result, the analytical and tax accounting are managed in an integrated way, thanks to the registrations that are made during the company's operations. With this method, implementation costs are  reduced and the application performance  of ERP software is improved .

Last relevant, but not least important, factor is  time saving . In fact, once the configuration of an ERP system is finished , automatic writes start  , which no longer involve user intervention. And therefore the company resources dedicated to the management of accounting can focus on  more strategic activities , increasing the productivity of the company.

Read also: Are you looking for Auditors in UAE

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Created on Jul 10th 2021 04:02. Viewed 174 times.

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