Accounting is one of the most critical functions of any business and choosing the right software to manage it can be a daunting task. Enterprise Resource Planning (ERP) software is an integrated system that enables organizations to manage business processes and automate various functions.
ERP systems like SAP S/4 HANA Cloud can support different areas of an organization, including finance, supply chain, human resources, sales, and customer service. With so many options available in the market, it can be overwhelming to evaluate and compare different ERP systems that claim to meet your accounting needs. A poorly chosen ERP can result in lost productivity, inefficiencies, and inaccurate financial reporting.
ERP's capacity to consolidate data is one of its primary benefits for your operations. ERP can be used by a business to store all of its financial information in a central database that can be accessed by all of its departments and users. This helps eliminate data silos, cut down on data duplication, and improve the accuracy and consistency of financial data.
Look for ERP software with several features and functions that allow accounting data to be managed centrally. Users should be able to enter, save, and track financial transactions like invoices, purchase orders, and receipts. It must also handle accounts payable and receivable, make financial reports, and keep track of cash flow.
Your ERP system should enable users to configure workflows and approval processes for financial transactions. This ensures that all transactions are correctly authorized and recorded and that any discrepancies or errors are recognized and remedied as soon as possible.
Data Security and Regulatory Compliance
ERP systems often include built-in controls for compliance with financial regulations, such as segregation of duties, two-factor authentication, and access controls. These controls help to prevent fraud and ensure the accuracy and integrity of financial data.
Lots of data, including private data like banking and private health information, are stored in ERP systems, so you must ensure your provider handles data responsibly and complies with rules and regulations in your jurisdiction, such as the Health Insurance Portability and Accountability Act (HIPAA) and The General Data Protection Regulation (GDPR).
If your business has operations in countries requiring in-country platform hosting, following international data hosting and privacy rules is essential. It is crucial to meet local regulations applying to data residency. Read the service level agreement (SLA) and other terms and conditions thoroughly, and find out if the vendor has the necessary backup infrastructure in place in the event of a disaster.
ERP systems should integrate well with the company's technology ecosystem. Your ERP must connect supply chain management (SCM), customer relationship management (CRM), and human resources management (HRM) to provide a complete picture of an organization's activities and financial health. It should assist accounting teams in understanding how business operations affect financial performance and help leaders make more informed decisions.
Total Cost of Ownership (TCO)
When selecting the best accounting ERP, the Total Cost of Ownership (TCO) is a crucial factor to consider. The total cost of ownership includes hardware, operating system, supporting software, installation, training, repairs, maintenance, updates, and technical support.
Start with a strategy that takes into account every factor that affects the TCO. This covers the project's implementation strategy, business requirements, and time and financial requirements. It is also imperative to assess hidden costs, such as those related to cloud computing fees or maintaining an outdated ERP system.
Innovations and Future-Readiness
You want to work with a vendor driven to innovate in a constantly shifting environment consistently and who shares your values. ERP providers should have a modern and flexible technology stack that can integrate with emerging technologies like AI, machine learning, and cloud computing.
Ask your provider about their technology roadmap and how they plan to incorporate new technologies into their software–many vendors are launching product features for cloud-based ERPs at a faster rate. Look for vendors that honor requests for enhancements and provide adequate support for the user community. Additionally, ask your provider about their ability to customize their software and how they can accommodate your changing requirements.
Selecting the right ERP system for accounting requires careful consideration of many factors. To learn more, visit our website–Navigator Business Solutions has expertise in ERP for tax consulting businesses and Professional Servicesfinancial institutions, as well as ERP for wholesale distributors and manufacturing companies.