Whether an integrated ERP approach or specialised software for financial management is better for a company can no longer be answered unequivocally these days. There are good arguments in favour of both approaches.
A lot inside with many advantages for financial management
With the increasing service life, the functional diversity of standard software of course. ERP systems, such as SAP Business One, are no exception. We have already discussed the benefits of being able to call up the many functions on a common integrated basis several times here. A standardised database for base data and transaction data harbours significant advantages in terms of timeliness and integrity.
And yet not everything is covered
However, as always when a tool has to cover many applications, there are of course also limitations that result from its multifunctionality. In earlier times, customised extensions were programmed for special requirements. However, this also meant that the standard software for financial management.
This raises the difficult question of whether it is not better to rely on the expertise of a specialised application for one or other task in the company. But perhaps there is also a third way, which means both.
Financial accounting rather integrated
A core area of an ERP application is finance. This includes accounts payable, accounts receivable and general ledger accounting, but also cost accounting and controlling. In addition, areas asset accounting and liquidity management. Whether it makes sense to operate financial accounting completely outside of financial management may be questioned. After all, there is a high potential for savings in that postings that are made from the document flow in the ERP application are standardised and thus automated.
Controlling sometimes this way sometimes that way
The situation is different with controlling instruments that go beyond simple cost accounting and are part of financial management. Here it is often even easier to provide an external tool for the controller than to try to provide his requirements in the integrated reporting of the ERP software. There are now many consolidation, planning and reporting specialists. Of course, many of these tools already have interfaces They do not have the same tools as widely used ERP systems such as SAP Business One, as they are dependent on the basic ERP data. Although the various tools start with different focal points, many of them already harbour BI systems the potential to also cover planning and consolidation.
The connection of the financial management is important
So whether you use additional tools for finance and controlling is often no longer the decisive question. What is more important is how they are connected. This should be done in such a way that the integration does not create a heterogeneous landscape. In the case of updates, this leads to additional work.
more on the subject:
Standard ERP: Advantages and disadvantages
The standard usability of ERP systems in 9 points
ERP as standard - what does that mean?
Integrated ERP approach or special software for financial management?
Standard still trendy
