Traditionally, the financial control and management within a business and the processes that have to be in place gave rise to a confusing picture that could only be interpreted by finance professionals such as auditors and accountants. Finance amounted to a disparate set of figures that needed to be offset or reconciled with each other equalling a costly use of employee time.
However, the outlook for financial control has changed thanks to Cloud Finance ‘Enterprise Resource Planning’ or ERP, as it’s known for short. ERP now offers automated solutions that use many of the modern software platforms available to bring together aspects of financial management and business process into one unified system through the Cloud. This can transform the way accounting is done by automating traditional manual tasks and streamlining financial management.
Essentially, what this means is that rather than rely on hardware or the installation and constant updates of software, interactions can be pulled directly from the Cloud. Cloud finance ERP’s automated solutions bring with them a wide range of tools and features to improve the efficiency of a business and also provide insights in a real-time setting so that the process of decision-making is better-informed. For these reasons, Cloud finance ERP can support the role of the systems accountant in many different ways.
With the integration of different departments such as procurement, sales, and inventory management into one platform, it becomes easier to automate transactions such as invoicing, payments and reconciliation. This makes it possible for accountants to keep track of their finances from a central location and reduces errors caused by manual input.
Streamlined procurement and finance operations, as well as enhanced data accuracy and reduced costs, improve the efficiency of accounting. And what’s more, streamlined workflow processes with minimised manual input mean better-managed resources across departments which must mean maximised productivity and therefore an increase in ROI!
Cloud Finance ERP enables wider financial management for businesses with the ability to make informed decisions based on current information instead of relying on outdated data. As soon as there are any changes or updates made within the system, all users can access the latest information without delay. This enhances accuracy in decision-making while reducing time spent reconciling as well as improving accuracy and efficiency in financial reporting.
The best news for anyone working as a systems accountant within the business is that ERP solutions provide real-time data that allow you to track expenses, monitor budgets, and identify areas for cost savings. The accounts payable system and accounts receivable systems can be integrated along with bank reconciliation and General Ledger and any fixed asset in depreciation that occurs. The need for manual financial reconciliations is removed and this smooth transition means that the systems accountant has a much less stressful job trying to make sure that cash flow is accounted for and that costs are set.
It is therefore not too difficult to see how this would facilitate budgetary and planning decisions, helping to manage and maintain set budgets and also predict new forecasts for what will be required over the coming years. Accurate financial projections enable finance teams to draw up their central plans and spending on the business’s outgoings. This robust reporting system can provide the analytics that will enable users to be able to create accurate financial reports and dashboards for those that need them. All stakeholders would then be able to visualise the spending and also see where the trends in the market are and what performance is required over what is already occurring. Executives could access accurate data instantly, when they need it most, and valuable insights into everything from inventory levels to cash flow.
The advantages don’t stop there. The Cloud system brings with it automated connectivity that allows your system to link with others so that transactions are quicker. This means that it talks to suppliers and even to e-commerce providers so that you can see where your financial spending is best placed. This now means that we are looking at a situation whereby you have multi-company and multi-currency support and the ability to switch to Yen, Dollars or the Euro, facilitating trading abroad as an essential part of business operations.
From an employee perspective, it also makes the addition of payroll (and the payment of it) a lot easier to compute and factor into any growth. The employee data can be stored safely on the Cloud and it can also allocate benefits that need to be placed should an employee choose to use them.
There is also a huge scope for using Cloud Finance ERPs for project management with the ability to make fiscal plans, along with the tracking of the costs of a project as well. Business leaders can allocate resources required for a project and maintain the progress that is being made without necessarily having to speak to an accountant. The cloud will provide an automation of the workflow that is required.
Potentially, the most important improvement that Cloud ERP can offer is that regulators such as HMRC and other government bodies can easily scrutinise the processes and financial position of a company without needing to organise visits and inspections. A business can be sure that it is remaining compliant with all the regulations that it needs to adhere to.
Cloud Finance ERP systems provide a cost-effective collaborative system that enables great accessibility for all stakeholders whilst bringing a real sense of completion and real-time data to support an organisation. For systems accountants, what’s there not to like?
