Do you find it difficult to handle all the financial activities that occur in the fast-paced business environment of your company? As much as the company grows, the financial requirement also keeps growing. Handling them without making unnecessary mistakes makes your business operations function smoothly. As we can see, it is simple to understand why there is a need for even more front- and back-end system integration as more company transactions go online. It could be time-consuming, expensive, and prone to mistakes to manually transfer payments between companies and use outdated legacy systems. That is where the need for an ERP payment system comes into play.
In this article, we will be exploring everything about the ERP payment gateway thoroughly. What are the features of it? What benefits will you receive by implementing an ERP payment system? How can you adapt to this software easily? You will find answers to all these questions by the end of this article.
What is an ERP Payment System?
Before we talk about the ERP payment system, let us introduce the ERP technology to you. Enterprise Resource Planning, also referred to as ERP, is a comprehensive approach to managing a company’s material, financial, human, and logistical resources. Any business, no matter how big or little, that wants to increase operational effectiveness and cut expenses can take advantage of it. ERP software must be customised for each business as a financial and accounting solution.
If simply put, ERP software has different modules inside of it which handle different aspects of the company. The payment system is one of those modules that can only handle the financials of the business.
The finance module in an ERP connects all of a company’s operational activities, such as sales, billing, inventory, payment, purchasing, etc., with its financial data, such as cash management, balance sheet, etc. The management of a company’s finances is crucial to its growth. ERP finance management software helps companies manage their money more efficiently by streamlining all the financial management processes.
The Main Features of the ERP Payment System
This system consists of various functionalities and features which have been developed to assist companies to boost the efficiency and productivity of their business missions. In the section below, we are going to walk you through the key features of this ERP payment module that will help you streamline operations in the sense of financials.
Recording Business Profits
It is common knowledge that a business is all about profits. However, what will happen if you do not have a proper tracking system to trace all your profits? Profit tracking is one of the core tasks assigned to ERP financial management modules. The profit tracker will assist in offering a top-down perspective of the company’s overall financial health and resource leveraging. By keeping track of your earnings, you can discover other revenue sources and calculate the return on every purchase. How much money your company makes from your efforts is determined by the tracker using the expenses incurred and receivables. Some applications use previous sales and spending data to predict future profits.
Maintaining the Ledger
Managing ledgers is yet another essential feature of ERP financial systems. A complete accounting of all financial transactions is provided by a general ledger. It binds with all of your various ERP modules, including customer relationship management and inventory management.
The general ledger or GL is where entries are normally made, however depending on your system, you could be able to make entries anywhere in the application. In any case, you’ll be able to access all of your entries in one place. Many different items are possible to monitor, including assets, liabilities, capital accounts, revenue, and costs. It might be quicker to file taxes and easier to control your spending if you have all of your financial information in one location.
Taking Control of Cash Flows
ERP will oversee all of the financial obligations that your company owes to its vendors and customers. An accounts payable component connects your buying system’s data with your spending information in order to manage your cash flows.
You could decrease labour costs and time spent on them by automating the accounts payable feature. Large volumes of invoices and other financial transactions between your business and vendors could be processed swiftly by the system. A capability called document capture, which is commonly referred to as imaging, is available in some programs and allows for the electronic conversion of paper bills. To put it simply, an accounts payable system will inform the user of their debt and the payment deadline, ensuring that they never miss a payment again.
Tracking Customer Payments
Are you struggling to track down the payments that you are supposed to be receiving from the clients? This is one of the key features of the ERP payment system. Your company is now able to handle all of the money that clients owe you thanks to the software. Along with managing invoices and cash, it will keep track of client payments. Some ERP financial systems include a gateway for your clients where they can view invoices and make payments. Automated processes have the potential to create recurring bills, and deliver account statements or payment reminders.
Since easy payment makes your company more approachable, automation in ERP speeds up the collection process and improves client connections. Straightforward transactions result in satisfied, loyal customers at the end.
Handling Fixed Assets
It is a common thing in companies that they pay taxes for assets that are not being used at the current moment. How can you find answers to this matter? All of your company’s tangible properties, including office space, computers, manufacturing machinery, and vehicles for work use, are monitored and handled by this system. It will look at tax implications, compliance needs, and depreciation computations as well.
Your company has enhanced visibility over utilisation, expenses, and maintenance thanks to asset management. For example, tracking the gradual deterioration of your assets can assist you plan budgets and estimate spending. You can prepare for those costs if you are aware that your equipment is getting older and could require repair soon.
Handling Integrative Information
The syncing of an ERP payment system with various other applications is a crucial and beneficial feature for sure. The seamless integration of the ERP payment solution with several business applications and databases streamlines financial processes and raises overall operational efficiency. This interface allows accurate and immediate financial reporting by facilitating smooth departmental synchronisation of payment data.
It also makes workflows automated, which lowers manual mistakes and wasteful repetition. A coherent and complete business solution is ensured by integrating the ERP payment system with customer relationship management, supply chain management, and other critical systems. This empowers companies to handle their payments efficiently while enhancing overall business performance.
Reporting Abilities
When handling the finances of a company it is essential to make different types of reports. How can you be sure about the accuracy of them when you make them manually? You get rapid access to financial data due to the analytical features of the ERP system, which is crucial for managing your financial resources. Making decisions regarding the financial health of your company can be accomplished by employing data-driven projections and the insight provided by that data.
You can find out where your revenue is coming from with the help of simple reporting and analytics. However, the dashboard is capable of much more, such as displaying your earnings, sales projections, expenditures, and a range of other financial information. Customising the dashboard normally allows you to choose which categories to show. You can take a look at real-time data presented in graph styles to quickly understand your company’s financial situation.
Top 5 Benefits of ERP Payment Systems
Client Convenience
Making things as simple as possible for clients, particularly when it comes to paying bills, is one of the main benefits of an ERP payment gateway. Customers could conveniently make a digital payment anywhere, at any time, as soon as they get an invoice.
Strict Data Security
Organisations will experience less risk from fraudulent payments and cybercrime since digital B2B transactions are more secure and traceable than conventional paper-based methods. Payment portals are often subject to strict regulation in order to safeguard sensitive payment information.
Saves Money
It is common knowledge that Paper check processing can be time-consuming and expensive with typical credit card payments. A lot of payment options, particularly paper checks, are packed with fees and hidden expenses. When companies switch to digital payment channels, they could reduce these costs or probably completely remove them.
Compliance with Law
Why do you need to pay unnecessary payments as penalties? When it comes to Singapore, they pay more emphasis on their financial regulatory landscape. The benefit when employing an ERP payment system is that it guarantees businesses’ compliance with laws and regulations. Businesses could reliably comply with regulatory obligations by automating financial procedures, keeping correct records, reducing risks and potential fines, and building a reputation for dependability and trust in the marketplace.
Boosting Productivity
The system enables finance employees to operate more productively by automating payment procedures, optimising workflows, and giving real-time financial data. Finance professionals can focus on strategic financial planning and analysis by taking advantage of this efficiency, which speeds up decision-making, reduces manual duties, and improves accuracy.
Make Your Business Financials Easy With New-Age Technology
As you can see, implementing new technology not only makes it easy for everyone in the company who is involved in finance to streamline their work but also boosts the overall productivity and efficiency of the company. But it is always advisable to do thorough research on the available software in the market before making purchases as some of the features might not go well with your business purposes. With the right tools and technologies, your business finances will be much more effortless.
