What is an ERP for Accounting and Why Do I Need It?
Before you can understand what ERP for accounting is all about, you must first understand what an ERP solution is and what it does.
ERP is an acronym for enterprise resource planning. As the name suggests, an ERP is a solution that helps organizations manage their resources. Resources include people, processes, or technology.
As a single, unified business management tool, an ERP solution connects every department, from financials, accounting, and sales to marketing and CRM. It acts as a system of record, compiling data from across the enterprise into a central location. The data is then accessible by every team member based on their role-based permissions. Because the data is in one place, it’s easy and efficient to track, report, and analyze critical business metrics.
Regardless of industry, companies use ERP solutions to become a connected business. Simply put, a connected business is one that has eliminated information siloes between itself, its different departments, and its third-party applications. By resting on a unified ERP platform, employees can communicate—and receive—accurate data in real-time, which allows for effective collaboration. According to G2, 88% of organizations “consider their ERP implementation helped them to succeed.”
It’s important to keep in mind that not all ERP systems are created equal. Some may be better suited for specific tasks or actions, while others may not allow customizations for specialty operations, such as accounting. This is where an accounting ERP system should be considered when an accounting organization or team is seeking a new ERP solution.