Question

discuss some of the basic features of an enterprise resource planning. How do these features distinguished an ERP from and integrated accounting software program.

Answer 1

Discuss some of the basic features of an enterprise resource planning.

1. Efficiency

Business processes like accounting, sales, marketing, production, and inventory are integrated in one ERP platform. It’s easier to collect and access data across the organization, streamlining cross-departmental workflows. Likewise, ERP automates day-to-day tasks like entering data or generating reports. Repetitive processes are eliminated, freeing teams to focus on their core deliverables. For instance, marketing can run a daily web traffic report without bugging tech; or, accounting can instantly access the week’s sales stats without chasing the sales director. ERP also provides managers and key stakeholders with quick look-ups. Dashboards allow decision-makers to glance at key performance indicators across the organization. If they want to investigate more, managers can drill down to details in a few clicks.

2. Collaboration

ERP breaks down walls between departments. Data silos are integrated and a process superhighway links local workstations together. This setup allows teams that used to operate in a vacuum to easily collaborate with other teams inside the ERP platform. Moreover, SaaS ERP further extends collaboration between remote teams and headquarters through the internet. Offshore business units are now within earshot of their mother unit. A culture of collaboration drives innovation and team play and, in general, makes businesses more competitive.

3. Data Security

ERP solutions have firewalls and restriction controls to guard against data breach. Having a single data warehouse means access points are tightly monitored and security is concentrated. Likewise, user permission rules give the admin the flexibility to lock in sensitive data without limiting user access to other information. Administrators can also quickly deactivate the access of terminated employees and grant permission to new ones. ERP solutions also display user activities, so you can easily spot unauthorized actions or suspicious activity patterns in the system.

4. Industry Regulations

Many ERP solutions feature built-in regulatory process standards and compliance reporting to help businesses meet myriad business requirements. ERP solutions subscribe to reporting protocols for aspects like financial accounting, product regulations and data security.

5. Accurate Forecasts

The only worse thing about the lack of a forecast is a wrong one. Forecasts shape strategies; thus, it’s crucial organizations get the real picture. Using a centralized database, ERP lends to a company’s disparate business solutions a standardized process, ultimately, enhancing data integrity. ERP reporting tools use advanced filters and analytics to sift data for inconsistencies. Features of ERP software like deduplication also ensures data is updated and duplicate-free. With data integrity intact, managers can generate reports with realistic forecasts. Similarly, estimates are within a sensible range of outcomes. Moreover, advanced ERP solutions with business intelligence tools use machine learning and predictive algorithm that allow users to dig deep into big data. Companies with complex data sources can leverage ERP for hidden insights and gain a competitive edge.

6. Operational Flexibility

ERP gives you a means to increase operational flexibility. For one, it helps you integrate existing apps to your system or export your ERP data to other business apps for a more streamlined workflow. Secondly, most of these give you the option to add more modules as your business grows so that you no longer need to replace your system with a new software. Lastly, ERP gives you mobility as it can often be accessed on any device so long as it is connected to the internet.

How do these features distinguished an ERP from and integrated accounting software program.

The difference between these two software's lies in the company’s needs. The ERP system can be used by every division of the company and every employee can have access to use it. While accounting software is generally only used by the accounting or finance division, and its users are usually only accountants. Before deciding which software should be selected, the company needs to know its needs first. If the company only requires automation for accounting, then using accounting software alone is enough. However, if the company wants to automate every operational activity and connect one division with another, then the ERP system is the right choice. Companies also need to consider the cost. ERP systems that provide complete solutions for various departments, including accounting, are certainly more expensive than accounting software's which only handle a single division. If the company is already confident about which software should be selected, the next step to take is to choose the right software solution provider and decide whether to use a conventional system or Cloud-based system (applicable for both ERP and accounting software's).