One incorrect figure can throw an entire budget or spreadsheet into turmoil. The history of business is littered with sad examples of tiny mistakes that had ruinous consequences.
As if this situation was not frustrating enough, consider that accounting errors are completely preventable since they stem internally and are the result of nothing more than human error. Given the right tools and motivation, it is possible for any business to eliminate the sorts of errors that can extinguish its fortunes.
The problem is that the complexity and repetition required for prudent accounting makes the risk of errors high. And in most cases, it is impossible for companies to put an end to them using diligence and dedication. As a result, the potential for disaster is always looming in the background waiting for a false figure to slip into the system.
To reduce risk and insulate themselves against accounting errors, companies are increasingly turning to ERP. Even though accounting accuracy is not the first feature that ERP is known for, it is one of the most impactful benefits. If you have struggled with accounting errors in the past or simply want to sidestep unnecessary obstacles, discover how much ERP can help.
Automate Routine Tasks
No matter how accomplished your accounting team may be, if they are performing the same tasks repeatedly the potential for error only compounds. ERP allows companies to automate many of these tasks and rely on the accuracy and precision of a machine rather than the distractible mind of an accountant.
Maximize Human Capital
Since your accountants will have a lot more time and energy on their hands after an ERP takes over some of the most laborious tasks, they can use their skills and newfound focus to spot instance or risks of errors. A set of expert eyes is the best asset your accounting efforts can have. If there is a problem, whether large or small, there is a much better chance of someone spotting it early.
Rely on Real-Time Data
Sometimes the difference between accurate and irrelevant data is only a few seconds. If your company does not rely on an ERP finance or distribution system to give everyone access to the most up-to-date data available, the potential for errors is through the roof. Accounting information has to reflect the state of your accounts right now, not yesterday or last week. By making updates and changes available to everyone with access, an ERP ensures that information delays don’t lead to catastrophes.
Get a Big-Picture Perspective
More than anything else, you want your accounting team to feel confident that they are always using the right data, in the right place, at the right time. But how can you expect that of them when they don’t have access to all or even most of your data in one place? The potential for inconsistencies and overlaps is exponentially greater when data is siloed into separate departments for sales, marketing, finance, and distribution. As a result, trying to balance your accounts is like trying to put together a puzzle over the phone. ERP offers a single shared platform through which your accounting team can access anything and everything it needs to work with accuracy.
Eliminating accounting errors is something to be excited about, but it is hardly the only benefits to expect from ERP. The reason that this particular piece of business IT is not considered mission critical is because it helps enterprises seize more opportunities while helping them avoid the worst kinds of obstacles. If you’re ready to minimize accounting errors and get out of the way of your own success, ERP is an invaluable option.