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Why ERP Is So Valuable for Accounting Teams

Learn how ERP for accounting has industry specific needs and challenges. Find out what these are and how ERP can help your accounting team.
Why ERP Is So Valuable for Accounting Teams

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.

What is An Accounting ERP System?

An accounting ERP solution is a solution that can be customized to meet the needs of accounting teams and companies. Accounting, and all that it entails (e.g., accounts payable/receivable, payroll, taxes, audits, compliance, reconciliations, etc.), is essential to the success of any organization. Attempting to manage accounting processes with disconnected systems and a lack of data is difficult at best and impossible at worst.

With an ERP for accounting, your accounting team can streamline processes, configure workflows, and analyze performance based on your specific needs. It can also increase overall efficiencies by consistently applying procedures across all areas of the business, improve compliance with automatic updates, and ensure security by putting it into the hands of the ERP vendor (more on that in a moment).

"The APIs were great within Acumatica…really liked the ability to do multithreading with them. Then the efficiency of the system overall and using the objects allowed us to do some pretty interesting stuff with it. But if you are developing a framework in which you have resellers who need to be reaching into this functionality. Acumatica Developers have been very good that we've gone, hey we really need this to be open. Boom, next version, we can now override and reach into that process."
Joshua Van Hoesen, Lead Software Engineer
Accounting System Integrators

Is Your Accounting Team Ready for ERP?

If you’re not sure your accounting team is ready for accounting ERP software, then answer the following questions. A “yes” to any or all of the questions suggests that you are, in fact, ready.

  1. Do you want to access business-wide data from one system?
  2. Do you want to eliminate spreadsheets and manual processes?
  3. Do you want to improve efficiency?
  4. Do you want to improve your customer service and engagement?
  5. Do you want flexible, real-time reporting?
  6. Do you want to improve decision making?

Additionally, if you’re suffering from accounting bottlenecks (e.g., slow review, month-end, and regulation implementation processes), then it’s time to research your accounting ERP options.

Which ERP Systems are Best for Accounting?

Many ERP systems are designed to manage accounting procedures. It’s up to you and your team to do your due diligence. Based on your specific needs, evaluate each ERP solution’s features, benefits, and capabilities. Don’t forget to evaluate the ERP vendors themselves. Having a trustworthy partner during and after an implementation is essential for a successful ERP implementation.

To help jumpstart your evaluation process, here are a few features the right accounting ERP must include: General Ledger, Accounts Receivable, Accounts Payable, Cash Management, Currency Management, Tax Management, Deferred Revenue Accounting, Mobile Applications, Recurring Revenue Management, Fixed Assets, Bank Feeds, Time Management, Intercompany Accounting, and more.

In addition to these critical accounting features, you will also need to determine how you can host the ERP for accounting solution: on-premises, in the cloud, or both (a.k.a. hybrid). On-premises requires an upfront investment into software and hardware. The hardware is set up and stored onsite, and it is the responsibility of the organization’s IT department to handle updates, upgrades, and security. In comparison, a cloud-based ERP solution requires no hardware and allows access to the solution via any web-enabled device from anywhere and at any time. The cloud ERP vendor maintains the hardware and ensures security.

The best accounting ERP solutions are those that give you a hosting choice, like Acumatica.

How Acumatica Can Help

Acumatica Accounting Cloud ERP provides best-in class accounting applications on a single, open platform. Acumatica’s product editions, including commerce, distribution, construction, manufacturing, and field service, operate on the same data base, have the same look and feel for ease of use, and interact seamlessly with each other and with the accounting applications. And the decision to host on-premises, in the cloud, or hybrid is yours.

Companies, such as Power Storage Solutions, have found Acumatica’s accounting ERP solution to be exactly what they were looking for. Power Storage Solutions was seeking an operating system that could handle their entire business—especially their accounting needs—within one system. They had their doubts such a system existed. VP of Operations Derrick Elledge says, “Frankly, we didn’t think we could find it. This is where we set the bar: we wanted to make sure accounting ran well, and we had something that could handle all six current operating systems with the same platform.”

He and the Power Storage Solutions team found what they were looking for in Acumatica. “What really threw us over the top with Acumatica is that it offered a full quote-to-cash cycle and it overlaid on top of a solid accounting system. Acumatica offered a service package, purchasing, inventory, a Client Relationship Management (CRM), quoting, manages projects and sales orders – all right there in one operating system.”

Big or small, new or established, your accounting team will benefit from Acumatica’s comprehensive, cloud-based accounting ERP software. Contact our team today with any questions or to set up a demonstration.

See what’s possible when you have a future-proof ERP platform that truly puts customers first.

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