How to use an ERP accounting software

What is ERP? Enterprise resource planning (ERP) software is a solution primarily used to manage daily business activities such as accounting, budgeting, supply chain operations, financial planning, project management, etc.

Essentially, companies use an ERP system to manage business performance and integrate important processes, such as sales, marketing, finance, human resources, and more, within their business.

What can ERP software mean for my company?

An ERP software system facilitates the flow between necessary business processes and important data while preventing and eliminating data duplication and redundancy to create indispensable data integrity.

This improves the information access process, streamlines administrative operations within the organization, streamlines internal communication, and automates tasks. ERP solution facilitates the exchange of information between different departments, making data more available and accessible so that it can be used productively.

What are the different types of ERP systems?

ERP on site

This is a type of ERP software that runs on the company's internal servers and in locations that can be managed by the person in charge. Ideal for businesses that need to protect and monitor system data, this type of ERP offers the control and security of using a personal IT infrastructure that connects to its people, systems, and processes.

Cloud-based ERP

On the People Managing People portal, they explain “This is an ERP solution hosted on a cloud computing platform, as opposed to local systems that run on-site. It allows companies to access services through the Internet. Vendors host ERP software in the cloud and provide it to businesses. This removes negative factors like upfront license fees.”

Hybrid ERP

This type of ERP integration combines the two explained above: an on-site system and a cloud solution. It is a modular, multi-sourced application, ideal for modern businesses operating digitally.

It is a two-tier model, meaning that it combines a hybrid ERP architecture with ERP capabilities preserved within an on-premises solution and applications deployed in a cloud.

How to use an ERP accounting software

There are some specialized ERP systems for accounting processes and managing company budgets, such as Odoo, one of the most used for this function and that offers multiple benefits to its users.

What is Odoo? Well, it is an ERP (Enterprise resource planning) software made up of different modules that allow you to manage all the areas that make up a company from the same place. It is a way of having at hand all the data that a company's work team needs, whether in accounting, sales, or marketing.

Odoo has the peculiarity of dividing its functions and operations into modules, with one of these focused on the financial part of the company: managing the accounting, income, expenses, and profits of the company, as well as other aspects.

Let's take a look at this module and how it should be used:

Billing

This module in this ERP solution is of great help to streamline and automate many of the procedures related to billing. "Invoice automatically based on sales orders, delivery orders, contracts, or time and material," Odoo says on his website.

That allows:

• Create invoices based on estimates sent to customers.
• Send formal invoices to clients with a single click.
• Invoices by email in PDF.
• Receive payments online through services such as PayPal, Ingenico, and Stripe, among others.

 
Accounting

Accounting is one of the most time-consuming tasks in a business, but it doesn't have to be a sacrifice. With this Odoo module, companies can do more in less time. This ERP software module allows you to automatically sync bank statements with your bank; create invoices, manage recurring invoices, and track payments. As if that were not enough, it allows you to manage supplier invoices and shows a balance of the invoices that remain to be paid.

Inventory

Another of the most complex tasks within a business is inventory management. And what better if it can be done online, through software like Odoo ERP. This Inventory module enables a better organization of your company's warehouses, keeping the inventory of existing products updated.

“Odoo's double-entry inventory does not compute with inventory inputs, outputs, or transformations. Instead, all operations are considered stock movements between locations,” Odoo added in an article.

Purchase

Within the operational part, purchasing management in a business can be cumbersome. The bigger the business, the worse this problem becomes. Although this Odoo module makes possible efficient and easy management of all vendor orders and customer purchase orders.

That allows:

• Automatically send requests for quotes to suppliers
• Easily import price lists and vendor references to make smart purchasing decisions
• Track the availability of a product in the supplier's inventory

At Rootstack we offer an ERP solution suitable for the needs of your company, do not hesitate to contact us to improve financial processes, make everything easier and leave your staff free to attend to other requirements.

We recommend you on video