Accounting is an essential piece of any ERP. While you would think they all would have robust accounting features, that’s not necessarily the case. Not all solutions are alike. Some ERPs may leave a seasoned accounting department wanting more. To help you avoid ERP buyer’s remorse, we’ve put together a list of accounting features in ERP we think no accounting department should do without.
5 Key Accounting Features in ERP
Cost Tracking Across Projects
One of the big selling points of any ERP is the breakdown of silos, allowing for shared data and collaboration. This is even more crucial if you’re constantly managing a long list of projects. A dynamic ERP should enable cost tracking across projects using data culled from multiple departments. In this way, you can get a bird’s-eye view of all costs related to a project and allocate them and your overhead more efficiently.
Not every client has the same billing structure or rate. So, for some, accurate billing can get complicated. When looking at an ERP, check that it allows for multiple billing scenarios, like these:
- fixed price
- milestone billing
- contract specific rates
Plus, robust labor and materials billing options so you can bill based on customer, work type, or contract specifics.
Time and Expenses
When a company manages multiple sites and partners, plus a variety of part-time and full-time employees, HR accounting can become complex. Look for ERP options that allow for timesheet entry remotely. You also want to make sure it emphasizes convenience with time and expenses, given the number of timecards you may process, and helps ensure accuracy.
Supply Chain Management
Managing the flow of goods or services at a company is always a tall order. And staying on top of inventory can be a nightmare for accounting. When you also need to address issues such as work-in-process inventory or the storage of raw materials, things can get even more complex. Look for global visibility of the supply chain, and real-time reporting on inventory updates.
Finally, you want to keep an eye out for an ERP with robust and customizable reporting features. Getting stuck with “one size fits all” reports that don’t suit your (or your CFO’s) needs can leave you frustrated. Look for an ERP that allows you to work within your reporting structure so that it works for you and not the other way around.
A great ERP solution can be a lifesaver for an accounting department, merging data, streamlining billing and more. By looking for some of these key accounting features in ERP, you will be well-served by your ERP and happier.
What experiences has your accounting department had with an ERP solution? Let us know in the comments below. And if you are considering transitioning from basic accounting software to an ERP, start exploring some top ERP options for finance and accounting professionals today.