ERP Software

ERP Accounting Software

Enterprise Resource Planning (ERP) systems, including the accounting portion, are essential for large businesses and becoming increasingly popular in the small and mid-size business areas.  When a company decides to implement an ERP system, they will almost certainly install the ERP accounting software module. Because of the benefits of having the accounting software integrated with the ERP system, it is difficult to think of a scenario where a different accounting method would be used if a company has an ERP system.

Having an ERP accounting system implementation decreases the complexity of an accountant’s work and increases his or her productivity. These multifaceted accounting software modules will make an accountant’s job easier by supplying built in functions and reports that can be run and accessed at a touch of a button.  These functions would follow the practices in the American accounting system, GAAP (Generally Accepted Accounting Principles), the European accounting system, IFRS (International Financial Reporting Standards) or the accepted standards in the company’s respective location. No longer should accountants have to use many manual steps to perform accounting functions. An accountant will typically just have to select a date range, select a data set and run the report or accounting transaction. The results will be returned almost instantly. Additionally, the ERP accounting software may introduce new methods and transactions to the accountant, because the software has been modified and perfected by many people over the years. Depending on the ERP system implemented, there also may be industry specific modules that would benefit the accounting department.

The ERP system database will contain all business transactions that the company has engaged in throughout the year. Having the compiled data already input into the system saves an accountant a tremendous amount of time. Since all business transactions are entered and recorded throughout the year, very little manual entry should be required from the accountant. The transactions will be recorded in the associated General Ledgers (GLs) and mapped to the relevant financial statements, without much effort on the accountant’s part. The accountant would still have to verify the numbers, but the job is much easier and less time consuming. Because these operations are automated, the likelihood for human error is decreased.

In short, ERP accounting software can be extremely beneficial to a company’s accountants and in turn to the company. The accountants are more productive, thus providing greater value to the company. Also, the ERP system can help to introduce new procedures that the accountant may not be familiar with.

Written by :

Amy Cruz