Accounting processes are an integral part of business management and include managing your company’s accounts receivable, accounts payable, general ledger and dealing with banking. Depending on the size and sophistication of your business, you may be able to use manual methods of data entry and calculation, or perhaps an introductory accounting system. However, in order to meet standard accounting regulations, and ensure a high level of data accuracy, as the business grows more sophisticated accounting ERP software is your best choice. Accounting ERP systems provide many benefits including:
- The ability to manage multiple currencies and multiple companies
- Real-time posting in which the software automatically posts to general ledger when processing invoices, payments or any other transactions
- Automatic emailing of statements
- Posting integrity controls to prevent a business’s books from going out of balance and to ensure a trail of entries, adjustments and transactions for auditing purposes
These benefits, however, are only as good as the data actually being input into the system. Poor data input is a common issue, especially in smaller organizations with less formal procedures in place. As an example, consider the accounts receivable function. Attention to data quality in your billing system profoundly affects the collection and reporting of revenue. The more incorrect data in your database, the longer it takes to collect revenue. The consequences of mailing invoices to the wrong address (or emailing to the wrong email address) are obvious. This also applies to sending information to the wrong contact at each company. Accurate data collection helps avert this situation and protects the bottom line from inaccurate billing that might mask the real financial picture. Moreover, it prevents unnecessary referral of accounts to collection agencies because of incorrect data.