Effective expense management can drive business growth by helping you maximize value while reducing costs. Zatka Best ERP Solution Provider in Saudi Arabia makes your company’s accounting more efficient by reducing human error, automating tedious manual processes, and providing clear visibility of expenses to influence forecasting and budgeting.
Expense management might not be the nicest thing to do on your checklist among your other growth initiatives, but its impact is powerful when done correctly.
The Importance of Expense Management Systems
A good expense management system helps avoid unnecessary costs through visibility and customizable controls. Smart, connected expense management, including maps and business management software, gives you accurate data and holistic visibility into your finances. It should also provide you with easy-to-manage processes around supplier relationships, employee reimbursements, and all other business initiatives.
Improve Expense Management with ERP Integrations
Integrating your ERP management software with your expense management tool can bring you various benefits: real-time visibility of company expenses, connected data, and error reduction.
Real-Time Visibility into Business Spend
You cannot predict and plan for the future without visibility into business expenses. And we’re not just talking about the little windows of visibility when the credit card statement pops up at the end of the month. Your accounting team needs real-time visibility throughout the month.
Integrating an expense management tool with your ERP software gives you that instant visibility into expenses. You can view real-time data and see where money is being spent, what it is being spent on, and by whom. This enables responsive expense management, including identifying spending patterns.
Connected Data
Finance teams currently rely on employees to report expenses correctly, and when they don’t, it wastes valuable time. It takes more than 15 minutes to correct an expense report. Accounting has to run after employees to collect their expense reports and that is a waste of time.
Integrating your ERP and expense management tools means you never have to run into this problem again. Automatic data reconciliation is a necessity for any accounting team.
Reduction of Errors during Financial Reports
You need to match expenses correctly when completing your accounting. But, as we know, manual reports are prone to errors and that’s normal we are human. That said, there shouldn’t be any errors in financial reporting, you should have confidence in the numbers you report, and that’s why software that automatically syncs and matches your expenses instantly, is a money-saver. Time for everyone involved.
As a business grows, the volume of transactions inevitably increases, which is why such automation becomes particularly important. Automation allows accounting teams to prioritize value-added activities over solving data entry issues. Many companies don’t use an ERP integration just for accounting. They will use it as an ordering system, for inventory management and other initiatives. In this case, it is important for companies to integrate an ERP as soon as possible, in order to avoid a process that will become increasingly complex.
When Should You Change Your ERP System?
It’s Not Easy To Know Which Software Can Best Help You As You Expand, So Why Consider Switching ERP Systems.
You can customize an ERP system to suit your business needs. A consolidation you can get from products like Microsoft Dynamics and Oracle NetSuite for business accounting.
What you need as your business grows and evolves, especially in the early stages of growth, is to understand the options available to you in the market and why some are more suitable than others.
In Short, You Might Consider Changing Your ERP If:
- Your finance function changes
- You need more governance and control
- Or you now have multiple legal entities
If Your Finance Role Changes
As your business grows, things change, including your organizational structure and day-to-day operations. Change is a good thing: it allows companies to remain flexible and responsive.
But if you grow from, say, 100 to more than 1,000 employees, the functions of your finance department will also change. You may find that you need a full group finance function and a group treasury function. This is something you need to plan for.
If you are on the cusp of a period of rapid growth, perhaps after receiving Series A or B funding, now is the time to upgrade to a true ERP system to manage all your accounting needs efficiently. .
For More Governance and Control
If your business becomes very large, you might look for a purchase order system, which large ERPs can automatically offer to customers. They allow you to create the centralized finance function of the group (and the treasury function if necessary): more centralization and better efficiencies.
Because You Have Several Legal Entities
Suppose you are currently using software such as Zero. In this case, it can become a challenge when you have three to five legal entities, you will notice a consolidation problem because Zero does not allow you to provide consolidated accounts.
Read More: ERP project control system KSA
