An ERP Accounting System is a useful software to manage financial data and processes of the company. ERP Accounting System includes modules such as SCM (supply chain management), CRM (customer relationship management), Purchasing, Sales, Warehousing, and many more. The ERP Accounting System works by centralizing financial processes from various departments of the company. ERP Accounting System increases the transparency of the financial status of the company. It finishes the complex financial task faster that’s helps to improve decision-making.
The ERP System is a software tool for managing businesses of all kinds and sizes. Enterprise Resource Planning software is a broad spectrum tool that comes complete with every business department module. Thus, with ERP system software you can do accounting, warehouse management, purchase and procurement management, financial planning, risk management and compliance, customer relationship management, enterprise performance management, human capital management, and so on. An ERP platform is an all-inclusive system that can gather data from different transactions and scrutinize it thoroughly to remove duplication and other errors.
Every business needs accounting software; wholesale distributors are no exception. It is designed to simplify bookkeeping and accounting tasks. This computer software helps an accountant record and report the financial transactions of the business. Examples of this software are Ximple ERP Accounting system for wholesale distributors niche, FreshBooks, Xero, NetSuite ERP, QuickBooks Online, Tradogram, Sage Business Cloud Accounting, etc. A simple accounting software platform will feature the Expense Principle, Objectivity Principle, Matching Principle, Cost Principle, and Revenue Principle.
ERP accounting system has a more prominent role to play as compared to an accounting software tool. The latter is a standalone software program that can carry out all business accounting and financial activities. On the other hand, ERP accounting solutions are just a module within a software product that can manage all companies as a single platform. Instead of having one platform that does only accounting and bookkeeping, you can implement an ERP package with this function and more.
ERP and accounting software should have several features to be considered helpful. These are:
There are pronounced differences between a business with standalone accounting software and another with an ERP accounting software The latter stands a chance to perform more productively and profitably than the former. When a business runs an enterprise resource planning program with an accounting module, it can expect the following benefits:
To understand how to use ERP accounting software, you should first know its key modules. These include the following:
ERP finance system definition This is a module in the all-purpose Enterprise Resource Planning Software. It allows you to generate accurate financial reports and future projections for the shareholders. In most cases, it forms part of the accounting system. Thus, you will find ERP for finance and accounting on the market.
Key Features of ERP Finance System
When you go window shopping for ERP solutions make sure you select one with a finance management module. Whether combined with accounting or not, the finance application should consist of the following features:
Why would you need an ERP finance module?
The right software for accounting and finance can be easy to select if you know the factors to consider. It would be best if you focused on the following:
Now you have bought a software system for your business. Next, you will carry out the onboarding process, which is all about implementation. Do the following:
The ERP accounting module will help an accountant capture daily transactional data and save it in various ledgers for easier bookkeeping and periodical release of financial statements like balance sheets and profit/loss accounts. The finance module of Erp will help the financial analyst plan, direct, monitor, organize, and control the monetary resources. They will specifically use past and current financial data to project future cash flows.
Cloud computing makes data and software accessible on the internet. Distributors can access it anytime they want using any internet-enabled device. As the books of accounting are maintained online, they can be accessed via a web browser or a mobile app. Distributors are ever on the move and can benefit a lot from using an ERP accounting information system that can be accessed from any place anytime. Besides, every authorized user in a distribution chain can access the accounts online.
Is there a difference between accounting software and ERP? Are you better off using both separately or just the ERP? In ERP vs. accounting, ERP is helpful because it represents everything that happens everywhere in an organization. Accountants need this data to do bookkeeping and create periodic financial statements that financial analysts need during budgeting and forecasting. When using a standalone accounting system, they need to get the data personally from each department. On the other hand, if their software is a module in the ERP, they don’t have to get in touch with other department leaders to ask for data. It will be accessible to them and anyone who is authorized to use the ERP.
An ERP application is vital in accounting. It can help accountants in multiple ways, including managing payments, allocating costs to different production activities, budgeting, and estimating capital requirements and management. It eliminates manual handling of data, which reduces human errors that can be costly to remove. They can use it for tracking profits and losses as well as support invoicing and cost analysis.
Conclusion. If you are in the wholesale distribution business, you have a wide range of options to select the ideal technological platform for your ERP accounting and finance system. Most modern ERP such as Ximple ERP for Wholesale Distribution offers On-Premise and cloud-based Financial and accounting software (SaaS).
In an On-Premise Accounting and Finance system, the Customer manages both the Software and the technology infrastructure (Hardware). This level of control enables the Customer to customize the software to suit their unique accounting processes. This flexibility comes at the cost of managing the unfamiliar terrain of managing the IT infrastructure.
In a Cloud-based Accounting and Financial system, the software vendor manages, both software and hardware. The Customer can configure the Accounting and Finance Software to meet their wholesale distribution business requirements. There is limited flexibility in customizing the application to meet the unique business processes. In some cases, the Customer will need to modify their business processes to suit the operations supported by the Software vendor.
The main benefits of Cloud-based SaaS Accounting and Finance Software are reduction in cost and complexity of managing the IT Infrastructure. Irrespective of Cloud or On-premise platform, the key is to understand the critical business requirements and ensure that the Accounting and Finance system that you choose can quickly meet those requirements.
ERP Consultant can help distributors to find the Right ERP Software. If appropriately managed, a wholesale distribution business can be very lucrative. It can grow fast and expand its operations to new regions. On the contrary, poor management of a wholesale distribution business can lead to losses that eventually cause business closure. Management can get more complicated as challenges increase. Below challenges faced by Wholesalers and distributors could be mitigated by leveraging ERP Consulting, Selecting the next generation of ERP Software, and implementing Cloud-based Platform Services:
Although ERP cannot eliminate an issue like changing fuel prices, it can improve your management role. As it is an all-encompassing tool, you can get real-time views of what’s happening in various departments: Accounting and finance, inventory management, warehouse management, sales and marketing, and project management, among others. As a result, you can avoid costly human errors as well as cope with unscrupulous workers.
What does an ERP consultant do exactly? An ERP consultant plays several roles. Their primary role is to conduct thorough research and suggest solutions to help improve the business’s operations that have hired them. Other duties include:
Independent ERP consultants carry out different tasks when hired or outsourced. They are competent in other areas and come in two categories. These are:
A functional consultant is also referred to as a business consultant. Their level of qualification is higher as far as understanding ERP software systems. Their functional knowledge is broad enough to help teams implement new ERP software, migrate from an older system to new ERP software or upgrade an existing ERP system. They understand how various business processes work together between different modules and can get your business the most suitable solution.
So far, you know the leading ERP functional consultant roles and responsibilities.
This professional is different from an ERP professional in that they are trained to offer technical support. They are the ones you need to hire when your systems stop working correctly as they can figure out the cause and remove it. Besides eliminating bugs and other glitches, an ERP techno technical consultant understands the process of installing and improving existing systems’ technical aspects. They are requested to install new ERPs or rectify old ones by different businesses with varied approaches and roles, and they can do it.
If you are going to select an ERP consultant, decide on the type you want first. Then check their qualifications to determine if they are fit for your business. Things to look for are:
Did you know that ERP consulting is critical professional to ERP implementation success?
Consultancy gurus know everything concerning ERP software and can oversee an implementation process for SMEs and large businesses. When looking for a consultant to help you, consider that they can:
Concerning how to choose an ERP consultant, there are a few factors to consider. The first one is the type of consultant you want. Do you need a technical or a functional consultant? As many people offer Enterprise Resource Planning (ERP) Consultant services online, you should call a few and screen them based on a selection criterion that works for your business. This criterion should be created based on overall organizational ERP needs, current business resources, and organizational culture, among other things. Ideally, you want to outsource someone with:
A management consultant can work with your company to enhance its performance through expert advice and problem-solving skills. Management consultants can check problematic areas and offer excellent solutions. They are an asset in guiding and advising the top management about big projects like ERP implementation projects
To get software that can fulfill your business needs, hire top ERP consultants from your region or any country in the world. The outsourced professional can do the following on your behalf:
As with any ERP idea, the first thing to do is define your needs. Ask each functional group to list specific and measurable needs that the ERP will benefit those departments and the whole enterprise. Hold meetings and share these lists. In the end, you have to consensus on some of the requirements that the whole organization agrees on and prioritize the list and must-have items and nice to have items both shown. These requirements for your ERP are yours. Any advisors you bring help you for choose the right ERP and guide you to meet those needs by adjusting the ERP properly.
One primary consideration that your enterprise should make before executing ERP is the ERP consultant’s salary. Mostly, the salary is counted based on the consultant’s time investment. The longer the ERP process, the more you are going to pay the consultant you will choose. Usually, consultants publish their hourly rates online. To compute the actual money you will spend, multiply the project length in months or weeks with a consultant’s hourly rate. Also, the type of consultancy you need will affect the hourly rate. For instance, an Oracle ERP technical consultant might charge a higher hourly rate than a sage consultant. The location of your consultant matters too. For example, an outsourced ERP expert from India may have a lower hourly rate than a company offering ERP consulting in USA services.
Perhaps you have already established a properly running ERP software system. Now you want to update it so that missing things can be added and wrong items can be removed. You can plan your upgrades as a preventative measure, and therefore you will do them voluntarily. This can be beneficial because errors that were about to happen could be found and solved. New software modules can be added. Another way is to conduct involuntary upgrades and, in this case, have no other choice. A severe problem must occur before a forced upgrade, also called a forced upgrade. For instance, your software provider might withdraw their support service for an older system and force you to upgrade. Either way, you will need the assistance of the best ERP consultant.
Do you own a legacy software system? If so, you should update the system with the assistance of a consultant. They will assist with the migration of data from your legacy system to a modern cloud-based ERP system. Their work will entail the following duties:
Distributors endure unique challenges, especially if they have many distribution channels. With a perfectly integrated ERP software tool, they can optimize their supply chains and overall operations. To know the best software to select, then select the best ERP consulting group.
It will identify, create, and implement an ERP solution that will meet all your predetermined business needs.
We sincerely believe and hope that you have learned something about ERP consultancy from us. When the time to install new ERP software, upgrade existing ERP software, or shift from a legacy system to a new ERP system comes, you will know to locate the best software consultant for your organization.
Ximple has the expertise to facilitate digital transformation in the Global Wholesale Distribution business. Our experienced Distribution ERP consultants can complement your internal IT Staff by replacing or migrating Legacy ERP Software with a modern Cloud-based ERP system. Ximple team can help you evaluate technological options available in the market, offer innovative software solutions, and suggest ways to drive productivity reduce inventory, and stay competitive.
It’s important to know the ERP Implementation Phases because nowadays COVID pandemic has accelerated Digitization, Digitalization, and Digital Transformation plans for many Wholesale Distributors. Wholesale Distributors have suddenly understood that Technology can improve efficiencies, and reduce inventory and profitability. Technology no longer looks esoteric.
The last ten years have seen many technologies and ideas mature from the Proof of Concept (POC) phase to become ‘Industry Ready.’ Technologies like Artificial Intelligence, Remote Collaboration, Machine Learning, Robotics Process Automation, Industrial IoT, and Blockchain have demonstrated their value to the early adopters who made these technologies a part of their day-to-day activities. The information and intelligence provided by these technologies have added value to the adopters.
As Wholesale Distributors get ready to implement Industry 4.0 technologies, it’s essential to upgrade or migrate their Legacy ERP to Cloud-based ERP. Next-Generation Cloud ERP offers distributors many challenges and opportunities. Technological decision markers need to understand ERP implementation processes. Here, we take the opportunity to clarify all concepts related to “ERP Implementation.”
First, ERP refers to Enterprise Resource Planning. It is business software for automating various business departments. There are industry-specific ERP software versions. Once you decide to obtain this software, go for an Industry-specific ERP tool. For instance, choose distributor ERP software if you do distribution business. After locating the best software provider, the next big step is implementation. It is the process of installing software, configuring options and settings,
and migrating data from your old software systems to the newly launched ERP. ERP Implementation phases are fulfilled with specific methodologies.
The process of adopting ERP consists of different phases or steps. You should not entertain failure because you will require more of your resources to correct it later on. Without further fuss, here are the ERP implementation phases:
Phase 1: Project authorization
At this point, a decision to buy ERP has been made, and it’s pending approval by the senior management. Once the CEO approves the project idea, they will ask the Chief financial officer to sign the contract. Their signature will authorize the purchase and implementation of a new software tool.
Phase 2: Official launching of the project
In this ERP Implementation Phase, the project begins officially. The company chooses the in-house team and external professionals that should oversee and carry out the entire process.
Phase 3: An analysis of actual requirements from the ERP
In this step, the team responsible for the entire term the process would take identifies the things the software should help the business do.
At the end of this phase, the team should already have an official report or document that requires approval and signed by top management.
Phase 4: The new software design is agreed upon
After gathering all the requirements, the next thing is to customize the software to ensure it meets every need. Sloppiness in this step is one reason why ERP implementations fail. This role is played by the expert developer you chose in Phase 2. They must choose the most suitable type of programming to do to meet the requested needs. The in-house team leader will then alert the top management about the developer’s decision for their approval.
Phase 5: The new software is configured
This refers to the actual installation and configuration of the software. This step requires software engineers to slot in the software for every requested need. The developers should create some of the most crucial documents for your company, including a purchase order form.
Phase 6: Testing the software after setting it up
User acceptance testing (UAT) is a very critical stage of a successful ERP implementation process. The software has been designed, installed, and configured to suit organizational needs. The UAT phase is imperative because it entails test-running the software. Testers should be selected carefully, and some of them should be IT professionals. Please don’t make the mistake of choosing novices as they will miss some essential software errors or viruses. This will cost you a lot of time and money to repair later on.
Phase 7: Training your employees
After the testing phase is over and everything looks great, the next thing to do is train your employees. They will be using the software, and it makes sense to orientate them at this point. Staff that play a role in distributing goods should be trained to use the new software tool.
Phase 8: Software integration and migration
If you have other software tools on your premises, they should be able to work harmoniously with your newly installed ERP. This step may also be done in phase 3. It is all about pinpointing software tools that can be migrated to the ERP system. Data migration will entail shifting the organization’s data from the old system to the new ERP software. Data can be shipping orders, customer forms, accounting data, sales reports, and so on.
Phase 9: Launch your New ERP system
Everything has been done by now, including project management. The software is ready to go live. This phase is super important as it marks the beginning of better performance and higher efficiency in every department. The software implementation team should hang around for a while to help employees get used to using the new software.
If your ERP execution process fails the first time you try it, many resources will be wasted. It will take your business a lot of time to recover the lost capital. To prevent this, choose the best ERP implementation approaches. The main ones are 3:
In this one, a developer focuses on executing software in phases. They choose one phase or department and shift all their attention to it. Once they finish with that one, they select the following department. This approach can make the implementation procedure longer than necessary but pose fewer risks and enable quick correction of errors. It also provides the team experience it would need in the subsequent phases.
In this one, developers implement the new ERP software while letting the older ones run. This parallel approach reduces implementation risks as a critical issue arises, and the business can continue running its older software system. A similar approach is associated with technical complexities and high costs.
Big Bang methodology
Developers deploy software for the whole organization at once. Unlike the other two methodologies, the Big Bang ERP implementation approach allows developers to deploy the tool across business departments or functions. This is the most complicated methodology and requires adequate planning and expert guidance to avoid costly mistakes. It is, however, the best when you need to save deployment time and overall cost.
There are several advantages you can get from implementing ERP software. They are briefly outlined next:
There is no standard ERP system implementation cost for every business. This is because every business is unique and has its own needs. To discover these needs and budget for them, come up with a plan. There are two pricing models too, and each can influence the overall cost. These are:
On-premise system or perpetual licensing model
our business will host the new ERP tool on its servers. If yours is a large business, the on-premise system is the best pick as you already have servers and other essential infrastructures. With this, the license is yours totally and forever. The initial setup cost will be hefty, though.
The Saas (Cloud ERP) subscription model
Also called a cloud-based system, this model is the best for small and medium-sized businesses. The software will be paid for in small installments every month and will never be yours. However, you can use it flawlessly and safely as it is cloud-based. It is the cheapest to implement of the two.
The first thing that the wholesale distributor ERP software could do to your business is to keep it ahead of the competition. Once you automate your distribution function, it will become more efficient and reliable. Goods will arrive at the desired destinations quickly, satisfying all customers. Distribution software encompasses all areas of your business, allowing you to have a single platform that meets everyone’s needs. When it comes to choosing ERP implementation types, you should be guided by your operations’ size and the amount of capital you have. If you are already a large business and can take a considerable risk, choose the Big Bang deployment method. Otherwise, the most advisable approach is the phased methodology.
As a small and medium business, your new ERP should help streamline and improve your operations. As your budget is tight, you can make mistakes when selecting and implementing your ERP tool. Your employees are few and might not have adequate IT expertise to supervise an ERP implementation process flow. So you need to outsource the role to a third-party expert to help you come up with a good implementation plan and team.
Next, find out how to avoid failure while implementing new ERP software:
If you want to do a successful process, follow the simple steps listed next:
During the implementation of an ERP software program, wholesale distributors should aim for excellence. Errors should be avoided entirely as they are expensive and time-consuming to correct after the software goes live. If necessary, outsource the task to the right team of experts if you are a small company with less experience and few IT experts to keep problems in implementing ERP systems away.