Erp System: 8 Tips For Good Financial Management


Financial management is a fundamental part in the development and economic growth of the company because it summarizes its primary tasks such as planning, analyzing and controlling its financial resources to ensure a solid future with the best results.

This may sound easy, but it is not easy to implement if you do not have the resources or the business vision, or if you are not trained to carry it out. However, there are companies that from the beginning carry out the management successfully and effectively because they understand that the management tools offered by an ERP system in the cloud are the best ally for a financial director to meet its objectives and optimize decision making.

TIPS FOR THE FINANCIAL MANAGEMENT OF A SUCCESSFUL COMPANY

TIP 1: THE RIGHT PERSON IN THE RIGHT POSITION

To begin with, it is important that the person - or department - in charge of the company's financial management meets the characteristics of the ideal profile. It is not uncommon to find companies in which their CFO is not the right person. And no matter how much training he/she receives, he/she is unable to master the system, much less get it up and running. All this ends up generating huge expenses and even bankruptcy. It is vitally important to have a brilliant mind that reduces collection deadlines, increases payment credits and manages liquidity while controlling risk at all times.

TIP 2: RELY ON TECHNOLOGY TOOLS SUCH AS A CLOUD-BASED ERP SYSTEM

Nowadays, keeping "in writing and by hand" or the daily financial operations of the company in Excel spreadsheets is archaic and at the same time dangerous because of the mistakes that can be made. There are management systems oriented to the user and to the generation of information, which turn out to be a friendly and uncomplicated tool to operate. Thanks to this tool, the company is kept up to date, without incurring major costs or wasting time in the generation of data and information. ERP financial management software in the cloud is reliable, agile and secure because it allows to know in detail and in an integrated way all the information of the company's operations.

TIP 3: GENERATE STRATEGIC INFORMATION ON YOUR FINANCIAL MANAGEMENT

When the company has access to the important information it generates hour by hour - as long as it has updated and quality data - it is carrying out an adequate management that minimizes risks and avoids making mistakes. What are the data that the company must know at all times? Status of items in stock, invoices receivable, invoices payable, monitoring of the evolution of balances, to name a few.

TIP4: WELL-DEFINED PLANNING

A company that has clearly and precisely defined its short, medium and long term objectives since its incorporation is destined for success. Good financial management should be the operational ideal in each of the objectives. From the beginning, the main challenge will be to control and anticipate cash flows as much as possible to ensure the best management of the company. And to achieve this, it is necessary to keep an updated record of all financial transactions, i.e. a calendar including dates of payments and receipts.

TIP 5: REDUCE COSTS

"Rule number one: never lose money. Rule number two: never forget rule number one". This quote from Warren Buffet, one of the 10 richest men in the world, sums up the enormous need to control financial resources and reduce business expenses in order to succeed. Only entrepreneurs who manage to distinguish the essential from the accidental will be able to see higher profit margins.

TIP 6: CONTROL CASH FLOW

It may seem obvious, but the best way to keep business expenses under control - whatever their nature: payment to suppliers, payment of services, payroll, etc. - is to monitor the inflow and outflow of money through cash flow. Knowing how much is coming in and how much is going out is of vital importance to achieve healthy finances at all times.

TIP 7: AGREE WITH SUPPLIERS

Sometimes the company's success depends largely on the negotiation relationship it has with its suppliers. Negotiating terms and values with suppliers to guarantee the best income is an art that every company that wants to succeed must develop. It should never be forgotten that the supplier is also someone who seeks a personal benefit in the negotiation. It is necessary to build trust, empathy and always speak the truth and with the utmost objectivity so that there are no surprises or misunderstandings. Golden law: win-win.

TIP 8: ANALYZE THE COMPANY'S PROFITABILITY

Last but not least, there is the question: is the company profitable or not? Is there the expected profit margin? Is there a profit or not? In a sea of data, statistics, situations, facts and assumptions we could lose our way and not have the precise data to answer if the company generates profit or not. A good option to avoid getting lost is the implementation of an ERP system in the cloud for the financial management of the company that manages in detail and in an integrated way all the information of the company's operations, which we will then need for decision making and for the implementation of the necessary changes.

NETSUITE, THE MOST RELIABLE, AGILE AND ACCURATE ERP IN THE CLOUD FOR GOOD FINANCIAL MANAGEMENT

The NetSuite ERP system is a comprehensive software that includes an accounting and finance system, project management, CRM, E-commerce, among others, and is the best tool for the company that seeks to design, transform and optimize its processes and operations. It offers an overview and in real time of all the financial data that the company needs for decision making. It supports the analysis of this data in order to resolve possible conflicts, or to enhance those actions that brought positive results. And most importantly, it helps to reduce costs and optimize the time of the department in charge of financial management, among other things.

LihatTutupKomentar