ERP finance: what do you need to know as a finance manager?
As a CFO, you have an obligation to be able to guarantee the accuracy of your company’s financial information. You typically need to integrate data from multiple business applications and from different departments, such as purchasing or inventory management. This heterogeneity does not make your job any easier. An ERP finance system provides integrated management of all the company’s financial data flows in real time. Management control is therefore greatly facilitated, even if the integration of ERP finance software into the information system often requires a rethink of existing processes.
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The implications of integrating an ERP finance system
In order for an ERP finance system to be effective in business operations, it must be based on real data flow models. Internal processes must therefore be known, described, modeled… and often reviewed.
Indeed, the audit (essential before any integration of an ERP system) can highlight opportunities for improvement and optimization of processes. It is therefore an opportunity for companies that want to make the necessary transformations for their growth.
The administrative and financial director must be aware of the impacts that the arrival of an ERP finance system can generate in the company. The time required to deploy the solution must be allowed for, as it affects all business processes, in all areas and activities. A budget is also required, as the use of the software by employees and accountants will undoubtedly require training. It will take some time after the implementation of the ERP system for the company to reap the full benefits.
The choice of the solution
Choosing among the many management software packages is not easy. The financial manager will have to define the exact needs of the company in order to compare them with the functionalities offered by the management tools. There is little chance of finding a product that exactly matches your needs.
Depending on the size of the company, its commercial management, its budget and its activity, choices are essential to obtain a productivity gain. A small organization can find a simple solution that covers 90% of its needs and can be parameterized to take into account the remaining 10%. A large company, on the other hand, will have to take into account different processes and will have to opt for a more complex and complete solution. Specific developments will have to be made in many cases.
A small organization working mainly at the local level may be better off investing in hardware and software to host the solution on its premises, provided it has a sufficient team to maintain the management tools. Cloud hosting will be more suitable for a large group or multinational company, whose needs may change and differ from one country to another.
Integration of the ERP solution
ERP integration requires special skills. If a team has the skills in-house or talent found through human resources, they can take on the job. However, the intervention of a specialized external service provider has the advantage of offering sufficient hindsight with regard to the processes to be modeled and, thus, to identify more easily the possible desirable optimizations.
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DAF AND DSI: HOW TO SUCCEED IN YOUR ERP FINANCE PROJECT?
Also read in our " ERP Finance project " file:
- What are the key challenges facing finance managers today?
- What are the key regulatory issues for CFOs in 2019?
- Digital transformation of the finance function : where do you stand?
- Digitization of the finance function: what should we expect in the future?
- What changes does dematerialisation bring to the finance function?
- Finance management: what technological tools are available to CFOs?
- ERP software definition: what is an ERP?
- What is the use of an ERP solution for the finance function?
- ERP finance: what do you need to know as a finance manager?
- CFO: what are the advantages of an ERP for the finance function?
- Finance software: which ERP to choose for your company?
- Postmodern ERP: the right choice for your company?
- Should you consider a Postmodern ERP solution?
- The challenges of a post modern ERP
- Post-modern ERP: the checklist
- Help in choosing ERP finance: why use a firm?