Question

How does the use of an ERP (enterprise resource planning) with financial and managerial accounting systems contribute to a company’s success?

answer in 200 words

Answer 1

Enterprise Resource Planning (ERP) is meant for overall business planning of the organization including manufacturing, human resources management, inventory, accounting, financial services etc. Enterprise Resource Planning (ERP) is a commonly used tool associated with business process re-engineering. The role of business process re‐engineering in implementing enterprise resource planning (ERP) is very importance.

The use of an ERP (enterprise resource planning) with financial and managerial accounting systems contribute to a company’s success by the efficient financial management which includes evaluation and panning, various investment and financial decisions, working capital management and financial risk management. It helps the organizations in their financial management by integrated software and information systems where each segment of business coordinates with each other for smooth functioning of the business. Therefore are many setting available in ERP system which helps the companies to customize the system as per their requirements for example a company can select the type of inventory accounting like first in first out (FIFO) or last in first out (LIFO) and this process helps in better inventory management and related activities of an organization. Therefore all the departments of an organization are benefited from ERP system to work in coordination for common goal of benefiting the organization.