What is financial management in business? In business, you need to be aware of the money flowing in and flowing out of your company. Money is integral to living and surviving, more so in businesses. For a business to sustain and grow, money is the utmost necessity. One needs to invest some capital in a business to start. The basic dependency of the business lies on the percentage of profit that the business is making and the amount of loss incurred by the business. The balance between the profit and loss determines the lifespan of the business.
However, even if you have a net profit, it might not be enough in the long run. New technologies such as SAP software is helping businesses automate their processes, and the effect is similar to a multiplier effect which cannot be easily found from monthly account reports. Many companies are jumping on the bandwagon for such software, but before you also jump on, you should be aware of what kind of provider your company needs.
One such SAP provider is Hitachi ICT. They provide SAP services and have over 2,000 consultants to highlight and narrow down what kind of software your company needs. They also liaise with your team regularly, so you can be assured that adopting new software is safe and secure. Do check out Hitachi ICT’s website for more: http://www.hitachi.com.sg/ict-solutions/solutions/business-application/sap-practice/
Next, your accounts team is still important. They are core group in an organization that finds out whether the business will survive or not. Profit and loss calculations are done with the help of ledgers and financial report is generated as a result of all the calculations. This entire process can be defined under the term finance management. The accounts team is like the backbone of the company. The finance team in an office calculates both the revenue generated by the company (external processes) as well as process the payroll functions of a company (internal process).
While using accounting software might reduce your dependence on them, you still need a few accounting staff to know how to run the software and to run in areas where you are not using the software.
On accounting software:
As finance is such an integral part of a business and having an SAP partner helps to boost a company’s efficiency, there should complete efficiency with which it is managed. This is where accounting software comes into the picture. Accounting software will help accumulates data from all the departments in one platform. This surely reduces a lot of infrastructural costs. Apart from that, it also cuts down on resources as a lot of processes that were earlier carried out by humans, are now successfully automated and can be done in a much shorter time.
These advantages only add to the profit of the company, as with the rise of competition every company wants to cut down on their infrastructural cost. Hence by using an accounting software, the finance function gets to be designed in such a way that the company achieves a cutting edge over the other companies. The finance team should be skilled to be able to identify the right vendor for the ERP software that they shall be used for the finance process. With the finance function getting bolstered and stronger the resources that are no longer used by the finance team can now be utilized for other processes and teams. In this way with fewer resources one the most important functions of a company is sorted. This surely is a great boost for the company.
In conclusion, SAP software can help to boost a company’s efficiency, but the staff also need to know how to utilise them well. The founder might also need to manage its accountants’ expectations if less accounting staff is needed because of the software. Staff may need to learn how to use software and not just traditional accounting techniques if the company is to move forward.