Benefits of Using ERP for Accounting

The popularity of ERP (Enterprise Resource Planning) software stems from its numerous benefits, which shall be revealed in this blog, especially with regard to the advantages that are conferred by it on the field of accounting.

What is an ERP?

Managing any business regardless of its size or its field, is a challenging task and organizations are always looking for solutions to simplify and make it more efficient. Enterprise Resource Planning software have been successful in providing tailor-made business management solutions to businesses of various sizes and from diverse industries. An ERP tool serves the purpose of integrating, automating, streamlining and managing the core business processes of an organization to ensure increased efficiency and a substantial amount of reduction in human errors. It collects, stores, interprets and manages data related to a wide range of business activities with the aid of a customized suite of integrated applications.

Every ERP solution provides certain benefits which are common to all industries. These benefits are accelerating response times, integrating databases and providing real-time data with regard to daily operations, streamlining as well as simplifying workflows which are lengthy along with monitoring and managing daily operations, enhancing productivity and operational efficiency, facilitating business data analysis so that informed decisions can be taken and meeting customer expectations. Moreover, it does away with data transfer that is chaotic along with security gaps and the probability of encountering human errors. These benefits are accomplished by an ERP tool by integrating various work processes into one system that can be accessed through a unified interface to save time and operational as well as administrative costs. Certain terms that are often associated with the best ERP solutions are the “Best ERP Accounting Software in India” and abroad, the “Best GST Accounting Software”, the “Best Customer Relationship Management Software in India” and globally.

An organization’s various departments use an ERP solution, which has a common and open database that is flexible enough to support all the applications. The administrative department, purchase, production, human resource, inventory, sales, customer relationship management as well as the accounts department are some of the departments of every organization that have consistently benefitted by using ERP solutions. In the following section the benefits that are provided by an ERP tool to an accounts department in particular, will be discussed in detail.

Advantages of ERP-based Accounting

Accounting and financial services are provided by a company’s accounting department. There are numerous benefits that an ERP solution provides to an organization’s accounting department. One of its main benefits is that it integrates and manages all the accounting related requirements. It improves cost accounting making it possible to define budget accurately as well as allocate properly the costs that have to do with labor, transportation, raw material etc. An ERP tool manages client’s payment schedules, automates reminders, tracks revenue and aids in credit management throughout a business.

ERP solutions produce and provide various types of detailed financial reports which help in managing a business more efficiently. Some of these reports are those that are about cash flow projections, which are based on inventory management and the status of orders. An ERP tool is known to provide automation that enhances productivity. Easy to use payment systems that are automated ensure that billing, payments as well as revenue management become simple and easy. Its increased tracking capabilities aid in tracking investments, profit, budgeting, invoices and much more. It reduces human errors significantly as well as the need to maintain paper files and eliminates duplicate data entry resulting in a data entry process that is fast as well as consistent. An Enterprise Resource Planning software ensures that there is round the clock access to accounting data. Moreover, financial data can be kept confidential by it by enabling access to it that is selective. ERP has become an indispensable part of the accounting departments of the modern business world by ensuring that data integration is seamless along with providing a plethora of advantages.

Source: https://www.linguee.in/blog/2021/03/10/benefits-of-using-erp-for-accounting/

The Benefits of Cloud ERP Software

Enterprise Resource Planning

Before delving into Cloud ERP, it is important to understand what an ERP software is. It is known to all that managing a business involves many intricacies. An Enterprise Resource Planning (ERP) software provides a perfectly designed business management solution to companies of every size and from various industries. The core business processes of an organization are integrated and managed by an ERP tool by collecting, managing, storing and interpreting data that is from a wide range of business activities. An ERP tool uses a customized suite of integrated applications for automating and streamlining the whole process, which results in an increase in efficiency and reduction in human errors. An ERP software is used by the various departments of a company, such as the accounts, administrative, purchase, production, human resource, inventory, sales, customer relationship management, to name a few.

An ERP tool proves to be a boon to an organization in many ways, such as, streamlining and simplifying workflows that are lengthy, monitoring and managing daily operations, increasing operational efficiency as well as productivity, accelerating response times with the aid of an integrated database, providing daily operations’ real-time data, facilitating business data analysis to make informed decisions. It is also useful in eliminating chaotic data transfer, security gaps and the scope for human errors. This is made possible by integrating separate work processes into one system that is accessible via a unified interface. This type of software, which serves the additional purpose of meeting customer expectations, not only saves time buts also saves operational and administrative costs.

An ERP software is an integrated system that operates in (or near) real time. This is common to all the ERP software packages, along with certain other characteristics. These characteristics include a modular design with a consistent look and feel across modules, along with deployment options that include on-premises, cloud hosted or SaaS. Every ERP tool has a common and open database that is flexible and supports all the applications.

There are many ERP software that have earned the reputation of being the “Best Enterprise Resource Planning Software”. One such ERP software that deserves to be mentioned is Linguee, which is renowned as not only the Best Enterprise Resource Planning Software but also as the Best ERP Accounting Software in India and as the Best Free GST Billing Software in India because it gives its users an edge over their competitors by the virtue of being designed to perfection with regard to meeting the requirements of industries from diverse fields.

Cloud ERP

A Cloud ERP denotes an enterprise resource planning (ERP) system that functions on the cloud platform of a vendor. This enables organizations to access it over the Internet. It is hosted by an ERP vendor and is made available to businesses as a service. It provides at least the same but usually better functionality when compared with its on premise counterparts. What differentiates a Cloud ERP from an on-premises ERP is not only the physical location of the ERP software but also certain characteristics that provide many advantages to a cloud ERP software’s users. Every cloud ERP software exists on a server in a data center that belongs to a particular ERP vendor. The user accesses it over an active Internet connection. In the cloud ERP setting, the ERP software and its data is managed centrally by the vendor.

A cloud ERP tool proves to be especially beneficial to small and medium-sized businesses as the benefits of an ERP can be reaped at a reasonable price without incurring a substantial expenditure that is related to hardware and software. Moreover, the updates are taken care of automatically by the ERP vendor.

Advantages of Cloud ERP

Data can be accessed remotely with the aid of cloud technology eliminating the need for complex technical configuration. Cloud technology offers the benefit of being more scalable when it comes to storing large volumes of data. Faster implementation is another advantage that is provided by cloud ERP systems. In the event that an organization either lacks or cannot afford the necessary resources and infrastructure that is needed, which cloud vendors have, cloud ERP provides an ideal solution by allowing such organizations to outsource the needed cloud technology. This helps organizations to focus on their core competencies. Moreover, the initial cost related to cloud technology is low. Cloud vendors provide ERP solutions that are reasonably priced and are usually customized as per the client’s budget.

Since cloud technology is easier to use than its on premise counterpart, there is less resistance on the part of the employees to use it. Some organizational cultures are such that there is more acceptance for cloud ERPs than an on premise one. Last but not the least is the security aspect. Cloud ERP vendors specialize in providing extremely secure hosting environments which is an important advantage.

Conclusion

An Enterprise Resource Planning (ERP) software is an automated solution meant to improve operational efficiency and productivity of an organization. Opting for a cloud ERP software has many advantages, such as making the service available and accessible at any time from any place with a device that has an active Internet connection. With many other benefits, cloud ERP software have made managing complex business activities easier, effective and time-saving.

Source: https://www.linguee.in/blog/2021/02/16/the-benefits-of-cloud-erp-software/

How Much Does It Cost to Implement an ERP System?

We are living in a digital age and everything is becoming advanced with time. Considering this, individuals or even big/small organizations cannot see their future without shaking hands with technology.

When we talk about businesses, implementing an ERP system has become a must to smoothen up the processes and improve ROI. Here, in this post, we are going to discuss what should be your budget to implement an ERP system in your organization. The cost of enterprise resource planning (ERP) will depend upon various factors including the size & type of your organization, its location, the type of system you want, and much more. We will talk about this in detail, but before we move ahead let us have a brief look at what ERP is.

What is ERP?

Abbreviated for enterprise resource planning, ERP is referred to the systems and software used to streamline industrial processes and simplify the activities to ensure effective monitoring and generate more revenue.

ERP software can automate most of the individual activities in your organization including customer relationship management, financial management, supply chain, and HR. Besides this, implementing an ERP system will also help you bring all these individual activities together and communicate effectively. Thus, you need to have a reliable ERP system to see your business grow.

How Much Does It Cost to Implement an ERP System?

Now, the real question here is how much you need to invest to implement an effective ERP system in your organization? If we talk about the average cost of ERP implementation, then small businesses will be required to pay around $10,000 to $1,50,000 annually whereas, this cost can rise to $7,50,000 for medium-sized organizations and more than $10 million for large businesses. The actual cost will be determined by various other industrial factors other than its size including the level of customization and on-premises deployment or cloud ERP.

Before we wind it up, here are two important ERP system pricing models that’ll help you effectively decide what actually will fit into your budget and needs.

Pricing Models of ERP System

Perpetual Licensing

Perpetual licensing is required for on-premises deployment. This means businesses want to host ERP software on their own servers. Thus, they are required to pay a one-time fee to get a perpetual license. Here’s a catch with this, the fee a company is required to pay will depend upon the number of users of the ERP software and the customizations you’ve asked for. It is seen that a perpetual license generally doesn’t require any maintenance or upgrade cost.

Subscription Plans

This is a better option for companies with a low budget as, with this option, companies can subscribe for monthly or annual plans. One point to be noticed here is that the ERP software will be hosted on a third-party server. This pricing model is also known as Software-as-a-Service (SaaS).

Conclusion

We hope that now you would have got a better idea of the basic cost required for ERP implementation along with the factors that control it. So, if you are low in budget, it is advised to choose the subscription plan because hosting the software on your own server is accompanied by infrastructure and training costs as well. While on the other hand, if budget is not an issue, then you must go for perpetual licensing.

Make your decision wisely and enjoy the benefits provided by the ERP system.

The Benefits of a Manufacturing ERP Software

What is an ERP software?

Enterprise Resource Planning (ERP) software is an effective solution for organizations of every size and belonging to a diverse range of industries, which helps to simplify the complex tasks related to business management. This business management software has been specifically designed to ensure the integration and management of the core business processes that exist in an organization. This integrated system has a common database and operates in real time. It provides support for all applications, along with that it offers a common user interface across applications. The most common ERP systems, based on their deployment options, are- cloud ERP, hybrid ERP and on-premise ERP.

An ERP software is an effective tool that serves the purpose of collecting, storing, managing and interpreting data that belongs to a diverse pool of business activities. This is made possible with the aid of a suite of integrated applications that are a part of the ERP software. The ERP tool automates and streamlines all the processes of a business and aids in enhancing efficiency and overall productivity while eliminating the possibility of human errors in handling data.

An ERP software consists of a customized suite of integrated applications that serves the various departments of an organization, such as the administrative department, accounts, inventory, purchase, human resource, production, sales, customer relationship management, to name a few. Based on these functions, an ERP software can be termed as the “Best Inventory Management Software System 2020” or as a “Customer Relationship Management Software India” or even as a “Free GST Billing Software in India”.

What is a manufacturing ERP software?

A manufacturing ERP software is that Enterprise Resource Planning software which serves the purpose of planning, managing as well as delivering relevant functionalities that support and aid in enhancing the efficiency and productivity of industries that are in the manufacturing business. Manufacturing ERP systems are flexible enough to support as well as be integrated into any of the business processes that are specific to the manufacturing industry. This provides an all-encompassing business processes’ management platform for the companies that are involved in the manufacturing business. It aids in efficiently managing and improving the way the resources of a manufacturing enterprise are utilized, which eventually leads to an increase in the overall productivity and competence of the businesses that are involved in manufacturing.

What are the benefits of a manufacturing ERP software?

Manufacturing ERP software aids manufacturing companies with regard to sharing crucial data related to production. This ERP tool makes sure that this data not only gets shared with the internal employees but also with external entities, such as suppliers, distributors and vendors. It results in improved communication as well as enhanced coordination of business activities within a company as well as with outside vendors, distributors and suppliers.

Another benefit is that all the information can be consolidated into a single system. This ensures that no duplicate data entry exists as well as ensures the ease of access across all departments with regard to organizational/business information. It lets those accessing the tool, remain aware of up to date information regarding daily operations in the manufacturing realm as well as the latest inventory and supply chain related data. The inventory can be checked, materials can be ordered and future demand can be predicted using a single dashboard.

It aids in production by enabling the manufacturers to streamline that process. It provides updated information that helps in keeping up with shop floor changes. It ensures quality management and schedules maintenance operations. These are a few of the many ways in which a manufacturing ERP proves to be beneficial in the production department. It prevents disruptions and unnecessary delays in not only the production function but in every business process that uses it.

A manufacturing ERP software can be of great help in increasing a company’s efficiency, as can be witnessed once again, but this time because of the role that it plays in the materials department. The functions of a material department, such as shipping, requisitions and purchase can be controlled by those that use the ERP tool. Since this software enables its users to keep track of the inventory, the raw materials needed for production can be replenished on time.

Being a configurable software, it offers the flexibility to not only cater to the specific needs of the manufacturing industry but also offers an adaptive solution to the constantly changing demands and needs of a thriving enterprise. Moreover, it provides a competitive edge by providing innumerable benefits to the business that uses it, in the highly competitive field of manufacturing. Additionally, such a software decreases an enterprise’s operational and administrative costs and makes available an accurate source of real-time data to manage operations efficiently and take informed decisions swiftly.

When is an enterprise ready for a manufacturing ERP software?

Manufacturing businesses of any size can benefit from such an ERP. It becomes a necessity for any enterprise in the manufacturing field to implement an ERP solution when the business processes that already exist are no longer able to function efficiently or when these become incapable of supporting the growth of the business. Another important reason for investing in an ERP solution is the lack of adequate security measures to eliminate risks.

There are many ERP software available in the market. Some of these are known as the “Best Inventory Management Software System 2020” or as an efficient “Customer Relationship Management Software India” or even as a beneficial “Free GST Billing Software in India”. A manufacturing Enterprise Resource Planning (ERP) software is the most effective technological solution for the manufacturing industry. It ensures an automated, integrated, streamlined and efficient business process management. A manufacturing ERP is designed to meet its industry-specific requirements, standards and regulations and takes into account manufacturing industry’s best practices to ensure overall efficiency and enhanced productivity for businesses in this competitive industry.

Source:https://www.linguee.in/blog/2021/01/14/the-benefits-of-a-manufacturing-erp-software/

Important Facts to Consider when Choosing an ERP Software

The advent of Enterprise Resource planning software came as a boon for businesses of every size and industry. It simplified the complex arena of business management.ERP is a type of business management software that has been specifically designed to integrate and manage the core business processes of an organization. It serves as a tool to collect, store, manage and interpret data from a diverse range of business activities. This is achieved by using a suite of integrated applications, which are part and parcel of the ERP software, and aid in automating and streamlining the whole process. This increases efficiency and at the same time eliminates human errors by automating the entire process. ERP consists of a customized suite of integrated applications that cater to the various departments of an organization like the administrative department, accounts, purchase, production, human resource, inventory, sales, customer relationship management, to name a few. An ERP system is an integrated system which has a common database. It operates in real time and provides support for all applications as well as a common user interface across applications. The most common types of ERP systems, based on deployment options, are- cloud ERP, hybrid ERP and on-premise ERP.

The process of choosing the best enterprise resource planning software is challenging as well as crucial. This choice would impact for a substantially long period of time the way the organization conducts its business. Since all the departments of an organization use the same ERP software, it impacts every function of that organization. Moreover, it is a significant investment. Hence, it becomes extremely important to zero in on the right ERP solution. As per the statistics, approximately seventy five percent of ERP solutions fail to achieve their goal. This data points at a staggering number. Organizations make certain common mistakes that mislead them into selecting an ERP software package that is an inappropriate solution to meet their needs. These mistakes have been mentioned in this blog so that this information can come in handy while choosing the most suitable ERP software.

The first and foremost mistake that organizations make, is to opt for an ERP package based solely on the reputation of the ERP software provider company and not considering their own specific and unique business requirements that need to be addressed by the ERP tool. A notable name in the ERP software market will definitely provide a very effective ERP solution, but it might not necessarily cater to every specific need of a certain organization. Some organizations might need extensive customization in order for their business needs to be met by an ERP tool. This is why the choice of an ERP software should depend on one’s organization’s operational needs rather than be based merely on the reputability of the ERP package provider. An ERP software should be chosen after evaluating one’s business goals and ensuring that it enhances productivity and helps to achieve those goals.

Another common mistake is to think that all ERP solutions are essentially the same. Every ERP package is different in terms of its features and the benefits that it offers. Even if these differences are subtle, these make a huge difference in the long run. That is why it is essential to find the right ERP solution that caters best to the specific organizational needs of a company.

Last but not the least, it is extremely crucial to involve key stakeholders. Before any organization decides to opt for a particular ERP solution, a team should be assembled that should consist of employees from all those departments that are supposed to use the ERP software. It is important to consider their inputs as they know better than others those requirements of their departments that they are expecting to be met by the ERP software. Moreover, proper training needs to be given to the employees regarding how to use the software. A lack of it is found to be one of the prime reasons why most ERP projects are not successful.

These are few of the main reasons why a vast majority of ERP software solutions fail to produce any fruitful result. Hence, it is important to keep these factors in mind when one is deciding to choose an ERP software package that will meet one’s organizational needs and serve its purpose of enhancing productivity and streamlining as well as automating business processes. Since an ERP software connects every functional aspect of a business, it is of utmost importance to choose the right solution. If the right ERP software system is chosen after considering the exact requirements of an organization, then it will ensure better operational performance of the company and aid in planning, budgeting, predicting and accurately recording and reporting all business data.

ERP software is meant to improve business performance and the right ERP software can bolster a company’s operational efficiency, performance and in turn revenue generation which makes it crucial to take an informed decision when selecting an ERP tool for one’s organizational requirements.

Source: https://www.linguee.in/blog/2020/12/29/important-facts-consider-choosing-erp-software/