Distribution companies face challenges brought by large amounts of transactions, vendors, and customers, and the effects these have on their operations and their integrations with suppliers and retailers. To ensure efficiency, accountability, and profitability, it’s crucial to keep your books organized.
This is where distribution ERP software with robust accounting features becomes useful. Accounting software can help you get a better handle on your finances, improve your bookkeeping systems, and help with tax compliance–all without you having to break the bank!
Why You Need Accounting Software for Distribution
Accounting software isn’t just good to have; it’s a necessity for distribution companies that deal with big volumes of data, people, and contracts. Here are some reasons why you should have accounting software for distribution:
Reduced Human Error
Spreadsheet errors, incorrect inputs, and other human mistakes are some of the most common causes of financial mishaps. Accounting software can reduce these blunders by automating processes. So, you don’t have to see instances involving price changes causing pricing errors because someone forgot to update all the systems, for example.
Improved Cost Control
Accounting software gives you a better view of the numbers involved in running your distribution operation. With better tracking, you can get more organized, which will help you understand your costs and margins better.
Better Compliance Reporting
A distribution firm’s finances are closely tied to taxes. Accounting software often includes programs for calculating taxes, preparing forms, and even filing your due diligence to the relevant authorities on your behalf. You also get reporting features to ensure that you remain compliant throughout your bookkeeping activities.
What is ERP Software?
An enterprise resource planning (ERP) software is a system that integrates all aspects of a business into one platform, working as a hub for all data and workflows. It helps companies keep track of all their systems which, in turn, improves operations and decision-making.
How Can ERP Software Help With Accounting?
Because ERP software deals with all parts of a company, it often includes features that are designed to handle accounting, on top of enjoying things like the benefits of an inventory management system. An ERP solution from Navigator Business Solutions can help you streamline your financial information and processes, enhancing accuracy and accountability.
Here are some ways ERP software can help your distribution company’s accounting:
Real-Time Financial Tracking
ERP software delivers real-time information that can give you a 360-degree understanding of your company’s financial health. Your staff doesn’t have to work on tedious bookkeeping tasks nor do you have to wait until reports come in before you can make important business decisions. Additionally, you can be sure that all data is accurate, as the machine inputs every number that’s on there.
Process Automation
One of the best ways ERP software can help with accounting is through automation. Many finance-related tasks are repetitive; the system can do a much more efficient job at these types of to-do’s, which allows you to refocus your talent and resources on more pressing jobs.
Insight Generation
The business intelligence features of ERP software will allow you to access powerful financial insights that you can use to track your day-to-day profits and margins and to improve any related accounting activities. You can get data in charts, graphs, and more for easy assessment, and you can set and monitor key performance indicators (KPIs) for better goal management.
Cross-Department Collaboration
Your accounting department needs to collaborate with other parts of your company to ensure complete and accurate financial inputs. Because ERP software is integrated into your entire business, collaboration becomes more streamlined.
Reporting and Compliance
ERP software can help you generate standard financial documents, such as income statements and balance sheets, as well as other reports like projections and accounts receivable reports. All outputs can be customized based on the entity that needs them.
Most ERP software with finance capabilities also includes compliance features that will help you stay above your tax and banking responsibilities.
Distribution ERP Software from Navigator Business Solutions
Transform your distribution business with distribution ERP software from Navigator Business Solutions, a leading provider of ERP systems to companies across all industries. Using a leading SAP cloud-based solution, we can guide your company through a successful digital revamp that doesn’t just upgrade your financial systems, but your entire operation as a whole. Get in touch with the experts at Navigator Business Solutions today to learn more!
