The widespread implementation of accounting ERP or Electronic Resource Planning into big and small departments is transforming the way accounting is managed. But more than a few enterprises have chosen to forego this solution and continue with manual, paper-based process or last-generation technologies.
There is a certain logic to this approach that makes a lot of sense. Accounting data is both essential and highly-sensitive. And history has shown over and over that accounting issues can lead swiftly to the demise of a business. It is understandable that trusting accounting data to a new piece of technology instead of the direct oversight of an accountant would inspire some anxiety.
We can be suspicious about accounting data, but not on accounting ERP. Once an accounting department has implemented and embraced ERP, the system ends up eliminating major sources of doubt and inspiring a greater feeling of trust overall.
How accounting ERP creates trust and not doubt
Human Error is Reduced
Your accounting staff is both an asset and can be a source of financial problem in the future. No matter how careful and meticulous they may be, there are going to be errors and oversights. And as the volume of data they deal increases, the frequency and consequence of those errors amplifies. Accounting ERP automates workflows like order to cash that are prone to errors while building checks and oversights into other workflows. Once your accounting operation abides by systematic process and computerized calculations, you can expect the accuracy of your data to improve significantly.
Regulatory Processes Are Followed
Accounting regulations are sweeping already and set to become a lot more complex soon. Even a minor instance of non-compliance can subject your company to hefty fines and penalties. Unfortunately, the challenge of maintaining compliance is huge and often uncertain. Accounting ERP makes it easier to comply with standards for auditing and reporting so that you can stay within the letter of the law with less effort overall. It also becomes easier to evolve with the regulatory landscape and not worry that key processes and provisions are being neglected.
Data is Transparent and Accessible
Successful accounting requires complete access to all relevant data at all times. But in many enterprises, data silos, access controls, and lagging processes make it difficult or even impossible for accounting teams to get all the information they need exactly when they need it. Since accounting ERP creates a shared platform for all data, there is never any uncertainty that the available data is the right data. The threat of the unknown is made minuscule.
Accountants are Free to Focus
Your accountants are likely to become the first evangelists for your new ERP. Once they discover how much drudgery, confusion, and redundancy is eliminated, they will have far more time to exercise their abilities and expose their strengths. Essentially, they will be in a position to deliver value instead of handling administration and maintenance all day. Once their true skills are put to good use, your team will find it easy to trust that the nuts and bolts of accounting are being well handled by an ERP.
If you are still on the fence about accounting ERP, just take a few minutes to envision your industry five or ten years down the road. Do you think your competition will still be investing significant resources doing things like updating spreadsheets or processing payments? More likely they will rely on automation, innovation, and optimization to operate in a lean and strategic way.
If you’re still committed to the processes of the past, your market share will quickly shrink. Don’t let unnecessary doubt cause you to fall far behind the pack.