Benefits of Accounting and Financial Management
Accounting Management:
Accounting management or Cost accounting is the internal process of analyzing the business cost and operation cost for achieving the business goals.
Financial Management:
Financial management refers to the management of the funds flow in the organization related to the financial assets and cash flow of an organization.
Main difference between accounting and financial management is prior internal process accounting for the business transaction and later is to create financial statements based on the accounting data collected.
With this little introduction you will have an idea what accounting and financial management is. In detail we will discuss the benefits of accounting and financial management, how it plays a vital role in the business growth, avoid error, effective reporting in aspect of cash and manufacturing process details and data security.
1.Accounting & Financial Management Integration:
The accounting and financial department plays an important role in the business operation and the main aims of its integration of these two are as follows:
- Increase Profit margins
- Reduce expenses
- Improve savings
- Safe and optimize investment plans
- Increase Goodwill value
- Inventory management
- Payroll Management
- Bills payable and receivable management
This integration is done by the ERP system which saves cost, time and improves productivity and process.
2.Tracking & Managing Accounting Financial Data:
Customer Relationship Management (CRM) in ERP system helps to send a reminder for the payables, effective customer inspections of purchases made , raw materials tracking , tracking profit and invoice , cost and budget analysis , further investment plan, stock value of the business.
3.Work Flow Automation:
Automation in the work flow helps with the productivity and integration of these two important things that can streamline account receivable and account payable management and cash management, easy tracking of the financial transaction in various departments and saves time. And remainder for the bill payments
4.Data Security & Management:
Data security is important in financial related data as it is highly confidential and does not get in the wrong hands which will be a threat to the business growth. With the ERP software the access based authorization can be given and multi layer lever production password and end to end encryption. Duplication data entry can be avoided , data entered at one branch gets reflected in the system avoiding conflicts , fast and consistent , and avoids error.
5.Financial and Accounting Control:
With the financial and accounting control even the bottom-line impact of event and decision in real time can be understood and analysed. Build in and customized filters helps in preparing the financial and accounting reports in different formats based on the need like tax , banks , shareholders and others
This is accomplished with the advanced ERP (Enterprise Resource Planning) Software which becomes an inevitable part in the modern business and its growth. Tally is the best ERP software for the accounting and financial management of the business and its growth.