Financial Management
Finance is considered the lifeblood of businesses
A strong financial plan will bring unbelievable business opportunities to businesses. Expanding scale or preventing bad situations that may occur requires financial resources to maintain and develop. Building a financial plan requires a long period of 3 years, 5 years, 10 years. Good financial preparation is the key for businesses to firmly grasp their goals.
15
Experience ERP
Debts receivable and payable
Record output and input invoices. Monitor and manage debt from customers and suppliers.
Money management
Receivables and expenses arising from economic activities, cash book reports.
Import and export of goods
Record entries for goods imported and exported from assets, supplies, equipment, and tools.
Depreciation of fixed assets
Monitor and depreciate fixed assets and allocate tools periodically.
Report business results daily
There is no need to wait until the end of the period to know the profit or loss
Revenue and cost information is recorded immediately, the system will immediately synthesize the expected profit/loss up to the time with the data entered into the system.
It is possible to foresee disadvantages in operations, thereby making appropriate and quick adjustment decisions to keep the company's finances under control instead of waiting until the next period to know the company's operating data. previous period.
Financial and accounting management in ERP is divided into many separate types of objects to manage such as customers, suppliers, products, projects, departments, cost items, employees, banks, etc. ...so, it is not difficult to immediately synthesize statistical data according to the criteria that the Board of Directors wants to report, which conventional accounting software cannot do and can only be synthesized using Excel, which takes a lot of time. time and resources to implement.
Benefits of accounting management in ERP
- Track transaction details instead of aggregates
- Inheriting data from specialized departments
- Built-in management reports based on available information
- Comply with Vietnamese accounting standards
- Segment management objects
- Instant cost, profit and loss reports
- Continuously monitor financial indicators
- Know immediately where the problem is
Differences between ERP and accounting software
Forecast monthly revenue/expenditure plan:
– Conventional accounting: does not have monthly revenue/expenditure planning.
– ERP: based on orders and payment terms -> the system will calculate the cash flow. And based on the purchase order and payment terms -> the system will calculate the cash flow, and can also enter additional cost estimates for other months such as salaries, insurance, outside expenses, etc. When making payment. The payment needs to clearly indicate which plan this payment is for so that monthly income/expenditure can be managed. Which accounts have been completed and which accounts are still outstanding?
Product price/project cost:
– Conventional accounting: only case code, calculate cost based on case code.
– ERP: has full project codes, cost codes, product codes, factory codes, equipment codes, etc. to be attached to accounting documents. Once the documents have information, prices will be synthesized for management purposes such as product cost, project cost, factory cost, equipment depreciation, etc.
How to calculate Debit/Credit:
– Conventional accounting: accounting assigns objects to one side of a Debit or Credit Account.
– ERP: accounting must assign objects to both Debit Accounts and Credit Accounts -> Enter more data, but the report will have more information.
The most obvious difference will be the management of receivables/payables:
– Conventional accounting: simply accounting for receivables/payables. When making payment, just reduce the accounts receivable/payable debt.
– ERP: detailed accounts receivable/payable accounts for each invoice. When making payment, you must clearly determine whether it is an advance payment or an invoice payment. If you are paying an invoice, you must clearly determine which invoice you are paying for and how much to pay for the invoice. That, or if it is a refund payment, it must be clearly determined which advance payment is the refund, or is this a direct payment without invoices such as taxes and fees.
That's why entering receivables/payables on the ERP system will take more effort and look more confusing. However, the result is that at the time of payment, you will immediately know how much money the customer/contractor still owes for which invoices, or how much has been advanced for which contracts. Manage debt age for each invoice, report debt in more detail.
