As any business owner knows, an effective cash flow is crucial to the success of the organization. Using an Enterprise Resource Planning (ERP) solution gives you the capability to streamline processes, increase visibility and ultimately create a more dependable cash flow. Whether it’s invoicing, inventory or data, ERP systems help improve the overall health of a small business, or any size business for that matter.
Automated invoicing equals getting paid faster
With an ERP solution, there is no need to wait until the next billing cycle to send an invoice. Moving from a monthly, bi-weekly, or even a weekly billing cycle to one that is on-demand, allows you to bill as soon as the work is completed. The faster the invoice is sent increases the speed to which you will be paid. And why do all the heavy lifting yourself? Set up invoicing to run automatically every night, or during the day if preferred, and take one item off your to-do list.
Take control of overdue invoices
An integrated ERP system makes it easier to see which invoices are outstanding, by putting all your receivables and collection information in one location. Use dashboards to see what’s open, what’s dated and the frequency of payments at a glance, along with all information about the collection efforts in process. Take charge of overdue invoices and keep cash flow in the black
Make inventory control a breeze
When it comes to inventory, visibility is key. ERP systems provide real time inventory updates, enabling more controlled purchasing. Through online inquires, and purchasing and planning reports, you can see what items you need to reorder, which are not selling and when it’s the best time to restock. With efficient inventory planning, you can gain more control over spend, only stocking what you need, without accidentally creating a surplus.
Get the data you need with the right reports
Having the real-time data you need at your fingertips is imperative for controlling your cash flow. ERP provides the reports you need to obtain data on specific transactions, pin-point patterns and understand overall fluctuations of your cash flow. Easily pull the data you need to find out what isn’t shipping (via Backlog reports), and what’s causing the delay with late purchase order delivery reports. This information allows you to follow up with the right person, whether it is in the warehouse, your supplier or the customer. Stay on top of the situation with ease and improve both your customer service and your cash flow.
Automate your workflows
Imagine the amount of time you can save by automating the processes you already do manually. An ERP system does more than integrate your data or increase your visibility; it helps automate your workflow, saving you and your employees much needed time on manual tasks. This leads to more money savings and happy employees.
Knowing and understanding your business’s cash flow is just as important for the small business as it is the multinational conglomerate corporation. Installing an ERP system is the most efficient way to help your small business do just that.