Startup

How financials could work as a backbone system for your company?

by Mina Haleem 21 Jun 22 3 minutes

Organizations are trying to make better decisions through data analysis and tracking all the business assets, income assortment to check public consumption. The financial module is the core of many ERP “Enterprise Resource planning” software systems.

ERP Enterprise Resource Planning. Planning to manage the organization to be able to use resources efficiently and for maximum benefit. management concept icons on virtual screen.

Financial Management system

A financial management system (FMS) is software used by organizations to manage their assets, income and expenses. Also, access to current financial data and the ability to bring different data sources together for multi-dimensional reporting and analytics.

Typically, the software component of an ERP system (finance module) helps businesses to oversee the essential accounting and financial issues. It keeps track of essential accounting capacities, including the general ledger and balance sheet, as well as overseeing financial issues such as asset management, accounts payable, accounts receivable, cash management, etc. As a result, accounting and finance are guaranteed to be accurate, help you in meeting financial requirements, and permit you to deliver enormous financial reports.

The most important financial reports generated by the financial module in an ERP solutions:

  1. Trial Balance
  2. Trading A/c
  3. Profit & Loss A/c
  4. Balance Sheet
  5. Debtor’s Balance
  6. Creditors Balance
  7. Cash/Bank Fund position

Features of Finance module  

  • General ledger: collecting all financial transactions in business. Such as income, costs, capital value, and assets. That helps to have appropriate financial data to analyze and report in real-time.
  • Accounts payable: help you track and control the current invoices and the incoming invoices.
  • Accounts Receivable: it allows you to automate processes and track the transactions between you and your customers.
  • Asset management: manage fixed assets, including depreciation, compliance requirements, disposal, fixed asset valuations, and taxation.
  • Risk management: evaluating and managing the predictable risks in the financial department. Risk management can also manage some risks such as security, legal liability, compliance, and reputational threats.
  • Reporting: The most important feature that enhances your work and avoids risks, the company can create accurate plans, make data-driven decisions. Because you can see your revenue clearly.

Financial Module Benefits:

Detailed financial reports: The financial system requires data from various sources, including manufacturing, billing, etc. that data can automatically generate many different financial reports that enhance your decision making.

Accuracy: Manual data entry is predisposed to error. ERP systems can track someone who made a mistake so you can easily identify it.

Improves productivity: automating all financial processes and mimicking the manual work. ERP system helps you save time and cost.

Helps in forecasting: reporting and analytical systems help organizations plan and forecast its revenue.

Consolidation and centralization: ERP systems facilitate your work and integrate all systems together. Therefore, your business can get all the financial data in one place.

A higher degree of control: tracking all the processes with a single synchronized system. You can also see the bottom-line impact of events and decisions in real-time.

The finance module is a part of SAP Business ByDesign and S4/Hana cloud ERP systems that covers all the features to streamline all your business finance activities.

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