How to order the financial statement of SMBs with an ERP?

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A manual and decentralized management of finances implies the generation of problems. Whether by mistake, duplication or forgetfulness, the information will not be consistent, the processes will take longer and additional costs will be generated. SMBs that have an ERP to order their financial statements have a comprehensive view of their expenses, income, and benefits. And, that helps them make smarter decisions adapted to the needs of each moment.

The possibility of storing financial information in a single centralized repository already implies a great advance in optimizing the management of any business. But, from a financial point of view, having accurate, real-time financial information will also be critical to competing in complex scenarios. The automatic generation of reports facilitates the preparation of accounting books, balance sheets, quarterly and annual statements, etc. But, above all, it provides an exact vision of the state of the business situation. An economic approach that will help executive and strategic decision-making.

ERP platforms provide optimal support for day-to-day management in any business. But, in addition, they actively contribute to the improvement and simplification of operations in the financial environment. 

There are 4 elements with which an ERP facilitates the analysis of financial statements in an SMB:

Financial information in real time . 

Data related to the commercial environment, whether sales, orders, budgets, etc. or with the accounting area such as invoices or payment and collection management are just some of the data that an ERP provides instantly. But, in addition to the information, these solutions offer the possibility of obtaining financial reports, also in real time, which provide a broader focus on the business finances. In reality, they project a true image of the company’s financial capacity, facilitating financial decision-making and optimal planning of future actions.

Control of financial statements . 

The analysis of the financial movements and operations carried out in a specific period will be key to obtaining a real vision of the financial state of the business. An ERP such as Business Central , facilitates the consultation of operations related to expenses and income. But also, with any other business process that has an impact on the financial environment -production, warehouse, marketing…-. Having accurate, truthful and updated information also helps to more efficiently manage the cash flow and liquidity of the business.

Budgets and cost control . 

Associating business costs with each specific business unit allows drawing up a savings plan, identifying those costs that could be expendable. It helps make smart investment and divestment decisions in specific environments. An ERP with analytical accounting functions will not only help to identify and quantify the costs generated in each business unit. It will also facilitate its detailed analysis and a cost control system to optimize finances.

Accounting up to date . 

An ERP allows you to keep the accounting management of the business up to date. And, with this, obtain an exact vision of the movements related to the assets and variations of the liabilities. The idea is not to spend too much time on accounting data entry functions. Functions that, being key, do not add additional value to the company. Therefore, the role of the ERP is critical to automate many of the tasks associated with accounting processes. An automation that helps to optimize time, but, above all, that aims at the efficiency and effectiveness of the accounting area. And, above all, to the accuracy of the information it provides. Information related, for example, to liquidity, current debt or the calculation of periodic amortizations of each asset.

In any case, supporting the financial management of a business in an ERP provides a Dynamics 365 partner, of its real situation. And it facilitates the control of financial and accounting operations

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