In-Depth Guide To ERP For Accounting Firms

4 years ago

Having to manage VAT, payroll, reports for state institutions, financial reports, travel expenses, posting, and a large database of clients can be a recipe for chaos in an accounting firm. An ERP brings harmony to your day-to-day business and improves your efficiency.

What Is An ERP For Accounting Firms?

ERP stands for Enterprise Resource Planning. This refers to a set of applications that are used to help small and medium sized businesses work smoothly and effectively. When you join up this set of applications you get an ERP.

An ERP-based application system is an integrated business application. It provides a set of integrated electronic applications that are designed for a specific business and are used by business owners to organize the activities of their businesses efficiently and easily.

An ERP for firms is structured to deal with all the rules of a particular type of its business. For example, an accounting firm or a hotel chain would have different rules and processes to follow.

Benefits Of An ERP For Accounting Firms

The biggest benefit of an ERP is that it can automate routine tasks thus saving you a lot of money. Accounting firms are known to be fast paced and highly reactive and an ERP will enhance this quality.

With an ERP, you no longer have to keep re-keying data because it will be stored online. This saves you, time and money. ERP software will streamline your processes and will bring them in line with the industry.

As a result, it will also bring about more efficiency. You will be able to spend more time serving your clients and less time doing administrative work. This will help you to grow your firm.

Almost all companies that are moving into new markets or opening new branches have adopted the ERP system. Why? Because it is designed to meet the needs of small and medium sized businesses.

It does not require a lot of space to store and it is a system you can always upgrade. Let’s look at the benefits of an ERP for accounting firms for you.

Better Control Of Paperwork.

If you are not a fan of spending time searching for old records, then you will love an ERP for accounting firms, which enables you to track past documents with greater ease.

Better Access To Data.

An ERP for accounting firms allows your professionals to quickly get updated information that may not available in physical form.

Everything In One System.

An ERP for accounting firms allows users to work within an integrated system that has a one-stop shop, which will help in reducing operating expenses and maximising profitability.

Preventing Fraud.

ERP software helps users to ensure there is proper segregation of duties. In other words, it ensures that there are no double entry of transactions, thus reducing the risk of fraud.

Better Organization.

ERP for accounting firms increases the efficiency of a company by helping with the smooth running of its operations. The system keeps track of all purchases, receipts, payrolls, and other activities related to its operation.

Reduces Errors.

Today’s accounting firms are faced with growing complexity. An ERP for accounting firms helps to simplify things, thus minimizing errors.

Cost Saving.

A good ERP for accounting firms can save up to 40% of a firm’s cost over a period of time. This is because instead of purchasing separate applications, you only need to buy one system that will be able to take care of the technological aspect of your company.

Allows Business Growth.

An ERP for accounting firms offers a solution that will meet any company’s demand for growth. They are designed to scale to your business needs.

Three Main Components Of ERP Accounting For Firms.

There are numerous ERP for accounting firms. But the major three components are:

1. Front-end

Front-end is the main part of an ERP and is more often than not, customized to fit your business. The main purpose of a CRM front-end is to facilitate contact between the customer and the firm.

2. Process Management

It is an important part of an ERP for accounting firms because it manages business processes. It controls the flow of the data through a network of ERP software.

3. Database

Database is another important part of an ERP for accounting firms. It is sometimes confused with back-end. The database or the back-end is the “brains” of the ERP. It stores all your business data.

The main advantage of an ERP for accounting firms is that it can provide an excellent framework for cost accounting. It improves the quality of your business data and as a result, giving you the ability to make better policy decisions.

The right ERP for accounting firms will assist you to envision your business growth. It will also help to control expenses.

Software is an integral part of the accounting sector. Most accounting firms have either implemented or are in the process of adopting accounting software.

ERP software allows for much greater connectivity to different entities through mobile devices. Knowledge of ERP software will make you more competitive.

Despite the benefits of ERP software, adopting these systems is not without challenges. How an accounting firm executes any new technology integration it has the potential of being very costly. For example: if you are a business owner you have to make a significant change in your business processes.

To accelerate the process of implementation there are some issues that you might consider. For example, if it is a software from another firm you have to compare the complete cost.

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