What is ERP Finance? Core Features & Common Vendors for Your Business

What if managing your company’s finances could be smarter, faster, and more accurate? Explore ERP finance - a powerful solution to take control of your financial operations while connecting them seamlessly to the rest of your business.

In this blog, we’ll uncover what makes ERP finance a must-have, highlight its most powerful features, and dive into top solutions for your business. Let’s transform the way you think about financial management!

What is ERP Finance?

ERP finance refers to the key module of an Enterprise Resource Planning (ERP) system that integrates various financial processes, such as accounting, budgeting, and reporting, into a unified platform, enabling businesses to manage their finances more effectively.

For example, when sales data (e.g., customer invoices and payment records) is entered into the ERP system, the financial module automatically updates revenue figures, accounts receivable, and even tax calculations. Similarly, when a purchase order is created, the system can update accounts payable, reflect the transaction in the general ledger, and track associated taxes or discounts.

An ERP finance system isn’t just about managing numbers - it’s about empowering businesses to streamline operations, make data-driven decisions, and stay competitive. It can revolutionise financial management with:

• Streamlined processes: Automates repetitive tasks such as invoice generation and payment tracking.
• Real-time insights: Provides up-to-date financial data, enabling better decision-making.
• Enhanced compliance: Easily stay aligned with financial regulations and reporting standards, reducing complexity and risk.

While both ERP finance and traditional financial software aim to streamline financial management, they differ in a few ways.

• ERP finance: Integrates finance with other business functions (sales, inventory, HR, etc.), providing a unified system. It also offers real-time data, automation of financial processes, and scalability for growth.
• Traditional financial software: Focuses solely on financial tasks, often lacking integration with other business systems. It may require manual updates and lacks the scalability needed for larger or growing businesses.

Top 6 Core Features Of The ERP Software For Finance

Did you know according to a survey, 50% of CFOs still rely on gut instinct for financial decisions due to siloed or inaccessible data? ERP finance systems address this challenge by providing integrated, real-time financial insights to drive smarter decisions and streamline operations.

Top 5 Common ERP Solutions for Financial Managers

When selecting an ERP solution for finance, businesses often turn to some of the most established and reliable platforms. These systems offer a range of features that empower financial teams to optimise budgeting, automate accounting workflows, ensure compliance, and improve decision-making.

1. Microsoft Dynamics 365 Finance and Operations

As one of the most widely used ERP systems, Microsoft Dynamics 365 Finance & Operations is known for its powerful financial management capabilities and integration with other Microsoft products. It’s designed to support both medium and large enterprises by providing end-to-end financial operations and real-time business intelligence.

Key features:

• Financial management: Streamlined financial reporting, budgeting, forecasting, and real-time tracking of financial data. It also supports multi-currency and multi-entity management, making it ideal for global operations.
• Automation: Automates processes like invoicing, payroll, and financial consolidation.
• Advanced analytics: In-depth reporting tools with built-in AI for predictive analytics and insights.
• Seamless integration: Easily integrates with other Microsoft and third-party software solutions.

2. Odoo

Odoo is an open-source ERP system that offers a wide range of modules for finance teams. It’s known for being flexible, user-friendly, and cost-effective, particularly attractive for small to mid-sized businesses.

Key features:

• Modular system: Offers a wide range of financial management modules, such as invoicing, accounting, expenses, and payments.
• Extensive customisation: Highly customisable to meet the unique needs of businesses in different industries.
• Real-time data: Provides real-time financial data to help managers make quick, informed decisions.
• Cloud and on-premise: Offers both cloud and on-premise deployment options.

3. Infor CloudSuite Financials

If you want an advanced ERP solution with a strong focus on industry-specific applications, Infor CloudSuite Financials is another choice. It offers cloud-based financial management and is designed to meet the needs of large, complex organisations.

Key features:

• Real-time analytics: Leverages advanced analytics for decision-making and strategic financial planning.
• Global financial management: Supports multi-currency and multi-country operations with easy financial consolidation.
• Automation: Automates financial processes, reduces manual intervention and improves efficiency.

4. NetSuite by Oracle

NetSuite is a cloud-based ERP solution from Oracle with a comprehensive suite of financial management tools. It caters to businesses of all sizes, from startups to large enterprises, and is especially popular among fast-growing companies.

Key features:

• Comprehensive financial management: Includes accounting, financial reporting, billing, and revenue recognition.
• Scalability: Ideal for growing companies that need a system that can scale with them.

5. SAP S/4HANA

SAP S/4HANA is a next-generation ERP system that combines cutting-edge technology with powerful financial management capabilities. Tailored for large enterprises, this solution delivers advanced capabilities for deep financial and operational insights.

Key features:

• Integrated financials: Comprehensive financial management that spans accounting, financial close, asset management, and risk management.
• Cloud and on-premise options: Flexible deployment options, allowing businesses to choose between cloud-based or on-premise solutions.

What’s Next? Partner with a Trusted ERP Expert

After selecting the right ERP finance system, the next critical step is ensuring its successful implementation. Partnering with a skilled ERP implementation expert can help streamline the process and ensure that your investment delivers maximum value. Partnering with an expert brings significant benefits:

• Expert guidance: An ERP expert will help tailor the system to your specific needs. They’ll guide you through the complexities of setup and customisation.
• Seamless integration: Ensure smooth integration with existing software (CRM, HRM, etc.).  Ensure minimal disruptions to your operations throughout the implementation process.
• Secure data migration: Transfer your existing financial data safely and efficiently to the new ERP system. 
• Training and support: Provide comprehensive training for your finance team, ensuring your team can leverage all system features. Access ongoing support for troubleshooting and system optimisation.

ERP Finance - Frequently Asked Questions (FAQs)

1. What is the ERP finance module?

The ERP finance module is a key component of an Enterprise Resource Planning (ERP) system that specifically handles financial management functions within an organisation. It centralises financial data and integrates it with other business processes, enabling a more efficient, accurate, and real-time approach to financial operations.

2. How does ERP finance integrate with other business functions?

ERP finance systems are designed to seamlessly connect financial data with other departments, such as human resources, sales, and supply chain management.

For example, ERP finance systems can pull data from sales and procurement to manage accounts payable and receivable more efficiently. This integration provides a unified view of the company’s performance and helps with decision-making, reducing silos between departments and improving cross-functional collaboration.

3. What are the costs associated with ERP finance?

The costs of ERP finance vary depending on the system’s complexity, the number of users, and the level of customisation required. Key costs include:

• Licensing fees: These are either one-time payments or subscription-based (cloud-based systems).
• Implementation costs: This includes the setup, data migration, and integration with other systems.
• Training and support: Expenses for training your team to use the system and ongoing vendor support.
• Maintenance fees: For system updates and bug fixes.

4. How to use ERP in finance?

You can use ERP finance in a few ways, such as:

• Integrate financial data to ensure consistency across transactions.
• Manage budgets and forecasts to align with business goals.
• Automate accounting tasks like accounts payable and receivable.
• Generate financial reports for real-time insights into business health.
• Ensure compliance with tax rules and regulations.
• Monitor cash flow and manage liquidity effectively.
• Track audit trails and reduce financial risks

Reference:

• Workday. Can Your ERP Do This?