Breaking Up Isn’t Always Hard To Do
Why Do We Need ERP Financial Reporting?
One of the most compelling reasons growing companies consider enterprise resource planning (ERP) software is because they need greater visibility into their financial picture, especially when it comes to financial reports.
But an ERP financial reporting system is only useful if it converts data into information and presents it in a meaningful and understandable manner.
Ironically, subpar financial reporting capability is the number one reason many companies break up with their current ERP system in favor of a new one.
And the reasons almost always boil down to one of four factors:
1. It’s too hard
Some ERP solutions issue reports in the form of a spreadsheet, which means once the numbers are pulled, there is still quite a bit of manual effort to tailor the report for a particular audience.
Maybe executives only want to see the bottom line, while AP needs more detail.
Or someone in finance wants to add another line item, which requires completely starting over from the data pull.
Whatever the request is, it’s going to mean a lot of work for someone—work that can easily be automated in a more sophisticated system.
2. Too much sharing
Every finance employee has at least once in their career held his or her breath before hitting the send button on a report.
Waves of fear wash over them as they consider and reconsider who is on the “To:” and “CC:” lines, and whether all those people should have access to the information in the report.
And the idea of creating customized reports for different groups takes us back to the issues in problem #1.
ERP software with robust financial reporting capabilities takes away much of that worry.
Reports can be easily customized for each audience.
And, without all of the manipulation needing to be done within a spreadsheet, the likelihood of human error is significantly decrease.
No more breath holding. No more questioning whether the reports are accurate.
3. They not interactive
With a simple financial report, what you see is what you get.
Want to know why one expense suddenly jumped several percentage points?
You’ll have to go back to the data to research, which can take a long time, and more work for that poor accounting employee.
That’s frustrating for the one who has to research it and for the requester who’s wondering why it’s taking so long.
Sophisticated reporting systems can provide access to the details of the data, while protecting the data integrity.
Any user can drill down to the fine details—even to the level of the journal entry—to discover what might be going on with the numbers.
If you are considering breaking up with your current financial reporting system, let’s talk.
We have some ideas about how to help you find a relationship with an ERP solution that will leave you feeling happily ever after.
4. They’re not accurate
Many times, an ERP financial reporting system cannot present all the data that’s necessary to provide accuracy.
Whether it’s an inability to summarize multiple company transactions in a single report, or missing data because it’s not categorized correctly for your business (product in transit missing from an inventory report, for example), there are lots of situations where an ERP financial reporting system can arbitrarily skip information that is crucial to your business.
Modern ERP solutions contain ERP financial reporting systems that are both easy to use, and flexible to incorporate all the data into the format you need.
Amazingly easy to customize, today’s ERP financial reporting systems won’t give you any reason to consider a break up with them ever again.