Application of ERP System in Financial Management

ERP is an enterprise management system that has applications in small, medium and large enterprises. The most important thing in the enterprise is financial management. With the continuous improvement of technology, financial management puts forward new requirements for accounting software, and ERP systems are increasingly used in financial management.

ERP system features in financial management:

1. The ERP system covers the whole enterprise management information system and realizes the integration of enterprise resource management and business process management. ERP system is divided into financial management, supply chain management, manufacturing resource management, project management, human resources management, sales automation and other major modules. Information resources in the system can be fully shared, data can be smoothly transmitted between systems, and not only internal modules are fully integrated, but also systems such as supply chain and production and manufacturing are seamlessly integrated, making the financial information of various business operations of the enterprise timely. Accurately receive feedback, thus strengthening the overall management and control of corporate capital flows. The system emphasizes the collection, analysis, and control of financial information oriented to business processes, enabling the financial system to support the restructured business processes, and achieving cost control over operational activities, realizing the integration of enterprise resource management and business process management. .

2. ERP system is a real-time dynamic management system. The traditional enterprise management software imitates the manual accounting model. The management breadth is limited to the financial department, and focuses on the capital flow. The depth is limited to post-analysis. ERP software takes business operations as a starting point to conduct an all-around tracking, recording and control of the occurrence, development and results of the company's economic business. The breadth of management has expanded from a single financial department to various departments involved in various operations. It has completely realized the integration of internal business processes, and achieved the unification of capital flow, logistics, and information flow to form a real-time dynamic management system. Real-time and dynamic information exchange can be realized between the headquarters, branch offices, and branch offices, so that the financial, sales, and inventory information in the group can be transmitted in a timely and accurate manner. Through the unification and standardization of finance, procurement, and sales processes within the entire group, the company will better coordinate and coordinate business relationships with suppliers and customers, quickly handle group-wide procurement, deployment and delivery, and achieve headquarters-to-subsidiary business units. Real-time monitoring and management of funds and logistics

ERP's impact on financial management

The functions of financial management are mainly based on the data of accounting, and are analyzed to make corresponding prediction, management and control activities. The application of ERP not only directly promotes financial planning, control, analysis and forecasting, that is, the pre-planning, in-process control, and post-event feedback functions can be fully realized, but also provides a broader development space for corporate financial management.

1. ERP has expanded the content of financial management. In the era of traditional industrial economy, economic growth mainly relied on tangible assets such as factory buildings, machinery and funds. In the era of knowledge economy, the proportion of intangible assets such as patent rights, trademark rights, computer software, human resources, and product innovation based on knowledge in corporate assets will be greatly increased. Intangible assets will become one of the most important investment targets for companies. However, due to the difficulty of recognizing and measuring intangible assets, traditional accounting software is very limited, and these intangible assets are rarely considered when making financial decisions. In addition to the financial system, the ERP system also includes systems such as supply chain management and human resources. It can analyze and predict these intangible assets from various parties and enrich the contents of financial management.

2. ERP facilitates the standardization of financial management systems. The ERP financial management system can standardize and measure various businesses and automatically generate corresponding certificates, which ensures the standardization and reliability of accounting information and guarantees the quality of information required for financial management.

3. ERP facilitates the scientific decision-making of financial management systems. ERP is essentially a simulation system. After financial data enters the ERP system, it is easy to calculate the impact of various changes. Differences or problematic items can be separated once they appear, and measures can be taken to correct them, which greatly shortens the time. The time for the company to make decisions. With the help of the ERP financial system, after simulating the changes in the company's capital flow and logistics under the influence of different profit margins and costs, careful decision-making will help improve the company's adaptability and competitiveness. The superiority of the ERP system lies in its ability to provide various operational information required by the business managers, so that managers can make the best decisions at the right time, effectively adapt to the needs of market changes, and obtain substantial profits for the company.

4. The ERP system changed the corporate money management model. As the manager of the company, it is necessary to care about the liquidity of the entire company from time to time, and prevent the company from having to face the payment crisis as a whole. In reality, the financial crisis of large-scale enterprises even closed down, and many of them are due to the turnover of funds. The two important functions of ERP fund management, that is, the automatic generation of cash flow tables in real time and the use of internal bank structures to quantify the use of funds by enterprises, can make the Group headquarters as an investment center for rational distribution and use of funds. The fund forecasting function in the ERP fund management module strengthens the company's forecast of short-term and mid-term cash flow and can provide early warning and ensure the smooth operation of the company.

5. ERP improves the real-time nature of the financial management system. With the development of global informatization, in order to establish a competitive advantage, companies will certainly pay more attention to the reduction of time, quality, service level, and operating cost of products entering the market, and they will be able to quickly reduce various operating costs and shorten the entry of products into the market. During the week, it sought balance and improved the level of financial management of other departments and external organizations within the company. Changes in the external environment forced the enterprise management decisions to be real-time. In the ERP system can be seen in real time: the daily inventory of the collection, delivery, storage status; the price of each product purchased; the completion of the production task; the realization of income and the recovery of payment and other conditions can be in the financial module at any time see. In this way, the financial staff can understand the utilization status of the company's resources more quickly and accurately than before.

Conclusion

With its modern management ideas and management methods, it effectively integrates internal and external resources of the company. The company's management and operation modes have been improved, and the company's competitiveness has also been directly improved. The management of the enterprise is aimed at improving the efficiency of financial management, and the ERP financial management system provides a broad platform for the financial department of each company at a proper time. The financial personnel should provoke heavy responsibility and innovate continuously throughout the implementation of the system. Promote the rapid development of ERP financial management system.