The importance of ERP to business management

ERP expands the content of financial management. The growth of traditional economic business mainly relies on tangible assets such as factories, machines, and funds.

In the Internet era, a large proportion of corporate assets are intangible assets such as patent rights, trademark rights, human resources, and product innovation based on knowledge.

The reason why these intangible assets are rarely considered when making financial decisions in traditional finance is due to the difficulty in the recognition and measurement of intangible assets.

In addition to the financial system, the ERP system also includes supply chain management, human resources and other systems. Therefore, these intangible assets can be analyzed and predicted from all aspects, enriching the content of financial management.

ERP highlights the integrity of financial management. In the financial management process, in addition to providing necessary financial statements, the ERP system can also provide a variety of management reports and query functions to more comprehensively provide financial management information for strategic decision-making and business operations.

Services are provided at all levels of management.

Organic combination of financial and production management ERP system enables the organic combination of financial management and production management, and plays a planning and control role. The system can integrate the production and financial management of the enterprise.

In an integrated environment, when the production and operation system can run normally, it is easy to drive the accounting system to run normally.

It is very difficult for a financial management system to drive a production management system, but it is much easier for a production management system to drive a financial management system.

Changing the enterprise's fund management model. The two important functions of ERP fund management are to automatically generate cash flow statements in real time and to use the internal bank structure to quantitatively assess the company's use of funds. It can enable the group headquarters to serve as an investment center for reasonable allocation and allocation of funds.

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Conclusion: With the changes in the business environment and the continuous development of information technology, financial management has developed from traditional single accounting to ERP modern financial management, and will surely develop in a more scientific, integrated, intelligent, and networked direction.

ERP implementation is an inevitable management change for enterprises.