Effective cash flow is crucial to the success of an organisation.
However, as businesses grow, manual and outdated systems can slow down daily operations, including processes that directly affect cash flow, according to Concur.
SAP Concur A/NZ SMB and nationals general manager Fabian Calle says, “By using an enterprise resource planning (ERP) solution, organisations can streamline processes, increase visibility, and create a more dependable cash flow.
“Whether it’s invoicing or inventory, ERP systems can help consolidate data and create faster cash flow to support the expenses businesses need to pay.”
Concur has identified five ways ERP solutions can help improve cash flow for organisations:
1. Automate invoicing
With an automated solution, organisations don’t need to wait until the next billing cycle to send an invoice.
Moving from a monthly billing cycle to one that is on-demand lets businesses bill as soon as the work is completed.
By billing invoices faster, businesses can get paid sooner.
2. Take control of overdue invoices
An integrated ERP system makes it easier to see which invoices are outstanding by putting all receivables and collection information in one location.
Organisations can use dashboards to see what’s due and the frequency of payments, along with all information about collection efforts in process.
3. Make inventory control easy
When it comes to inventory, visibility is key.
ERP systems provide real-time inventory updates, enabling more controlled purchasing.
With efficient inventory planning, organisations can gain more control over spend, only stocking what they need, without accidentally creating a surplus.
4. Get the right data with the right reports
Having real-time data is imperative for controlling cash flow.
ERP provides the reports organisations need to obtain data on specific transactions and monetary patterns, and understand overall cash flow fluctuations.
This information lets businesses take the right action for faster results.
5. Automate workflows
An ERP system does more than integrate data or increase visibility; it can also help automate an organisation’s workflow, reducing manual tasks and saving businesses and employees valuable time.
This leads to more cost savings and happier employees.
Calle says, “Knowing and understanding cash flow is just as important for a small business as it is for a large multi-national company.
“Installing an ERP system can help all organisations ensure cash is flowing to take advantage of the right opportunities available to them.”