Top 5 Benefits of Financial Management Automation

There is no question that many are familiar with ERP systems and their expected financial benefits. Everything from efficiency of data traffic to the sharing of information between program areas have all been associated with potential savings, cost avoidance, improved performance and system efficiency. However, as many are also aware, ERP systems can be expensive to implement and, if things go wrong, can be even more expensive to rectify. So, there can be a lot of criticism about actual ERP system implementations meeting their marketing promises.

Now, before the ERP defenders lock their arms and shout out numerous reasons about bad planning or issues out of normal project control driving costs up, there are in fact serious financial benefits to be gained from ERP. The problem is that the quantification of these benefits can be missed, which then leaves customers and clients feeling like they’ve been duped at the end of the project. The solid benefits measured in analyzed projects include:

  • An increase in faster information sharing and delivery between programs and to management.
  • An increase in accuracy of reporting due to automation removing some of the human factor in report preparation.
  • A decrease in the amount of delay from gathering information to making decisions.
  • A decrease in tax reporting errors as well as costs associated with auditing and responding to compliance reviews.
  • And finally, but probably most importantly, there is a significant increase in coordination and collaboration due to shared data reporting now being available.

Measurable results come with how a consumer uses an ERP system once it is in place and operating after the fact. The planner will commit that a well-designed and implemented system will provide the ability to make a company run better with its data. And that potential is where the savings come from; having the employees and staff who can realize and use an ERP system to its full potential will make the financial benefits manifest.

Source: Aberdeen Research