Regardless of the size of a company or the industry it operates in, it processes a vast amount of data related to financial reporting on a daily basis. Integrating ERP platforms helps to standardize these processes, and makes them easy and convenient. Established procedures and document templates ensure uniform and consistent reporting.
By deployment of an ERP, companies can optimize their finances, reduce staff and cut costs. Which results in improvement of transparency and quality of reporting and assurance of compliance with regulatory requirements.
Principles and Percs of ERP for financial reporting
The software offers a number of advantages over traditional financial accounting methods:
- Operational efficiency. Budgeting in ERP avoids the need to wait for periodic reports from different departments. The platform provides real time data. This responsiveness enables faster decision-making and dynamic budget planning.
- Single data entry. Information is entered once, streamlining the processes. Avoid duplicating by manually entering data from different departments into the financial plan. This eliminates errors and saves time, increasing overall productivity.
- Data security. Ensures strong security of financial data. Advanced security measures protect crucial information from both loss and unauthorized access.
- Advanced financial modeling. Provides extensive financial modeling capabilities. Plan and forecast budgets based on a wide range of external and internal factors. This flexibility helps you develop precise and comprehensive financial strategies for different scenarios.
- Dynamic online reporting. Statements are available in real-time, without special generation. Users can customize and adjust reports to meet their specific demands. Get instant access to up-to-date data.
Types of financial reporting and new management horizons with ERP
ERP streamlines most of the routine processes associated with financial reporting. The platform’s tools include automated form completion, key metric calculation and summary report generation. Automation reduces the risk of human error and speeds up data processing. ERP helps to solve a wide range of financial reporting tasks.
External reporting
- Financial reporting: preparation of annual and semiannual reports, including the balance sheet, the profit and loss account, the statement of changes in equity and the cash flow statement.
- Consolidation reporting: for large enterprises with subsidiaries and branches, consolidation of the financial statements of all divisions is required.
- Tax reporting: filing tax returns and paying taxes on time.
- Regulatory reporting: Generally accepted accounting principles (GAAP) compliance, including disclosure requirements imposed by governmental and industry authorities.
Internal reporting
- Management reporting: providing management with regular operational and analytical information for decision making.
- Plans and budgets: developing and monitoring annual and short-term plans and budgets.
- Deviation analysis: assessing deviations from planned results and applying corrective measures.
- Forecasting and modeling: building models to forecast future financial results and business scenarios.
Budgeting
- Annual budgets: plan income and expenditure for the coming year.
- Quarterly and monthly budgets: breaking down the annual budget into shorter periods.
- Target budgeting: setting targets and KPIs for different company divisions.
Loan and deposit accounting
- Debt monitoring: keeping records of customers debts and collecting debts on time.
- Maintaining deposit accounts: accounting for funds received and transferred to deposit accounts.
Payments to suppliers
- Payment of bills: monitoring the timely payment of bills from suppliers and subcontractors.
- Purchasing expenses: accounting and control of expenses for the purchase of goods and services.
Key conclusions
ERP platforms provide accurate financial planning, detailed financial analysis of the company’s activities and timely control over financial and business operations. The system provides an intuitive interface for creating bespoke budget forms and financial reports. All these advantages make ERP an indispensable tool for modern companies. The platform helps to increase the efficiency of financial operations, improve the transparency of reporting and comply with regulatory and market requirements.
