Financial analysis is a complex subject. There are so many factors to consider, which makes it quite hard to make informed business decisions. It’s a limitless combination of factors such as market trends, competitive information, revenue and profitability, cost of sales, geography, customers, products, you name it. That is why many organizations choose to deploy software solutions such as SAP for finance.
SAP ERP (Enterprise Resource Planning) is a product of a German multinational software corporation known as SAP AG. The company specializes in the developing enterprise software solutions to help big companies all over the world to handle customer relations and other operations efficiently. Primarily, the company provides three types of solutions. These are:
- SAP ERP operations.
- Human capital management.
- ERP financials.
Some components of SAP ERP solutions are under these products. For instance, components such as risk management, accounts receivable, accounts payable, etc. are under SAP ERP financials. Due to the constant pressure that today’s CFOs are subjected to on a daily basis, SAP solutions for finance have become quite popular.
The pressure to have financial closings done correctly and on time — coming from both internal and external forces as well as regulators and shareholders — calls for better bottom-line results. That can only be achieved by improving procedures, processes, as well as the overall strategy. The best — and perhaps the only — way to make these achievements is by deploying a financial software solution such as SAP ERP financials.
Benefits of SAP Financial Solutions
Apart from its components, the ERP financial solution contains different modules such as sales and marketing, accounting, product design and development, field service, et cetera. By employing these modules, the solution gathers and combines data to deliver proper resource planning for the organization. If it’s correctly implemented, the financial solution can lead to a reduction in inventory and lead time benefits. Some of these benefits include:
- Financial reporting. The latest SAP product, SAP S/4HANA, is cloud based and provides the best financial reporting tools any CFO could ever wish for. It comes with some comprehensive analytical tools for finance and better reporting, and they are lightning fast. It provides an in-depth analysis for key financial indicators.
- Cash management. ERP finance solution provides an innovative cash management feature that provides services such as liquidity planning, liquidity forecasting, and short-term cash position. It can also be used in the process of managing bank accounts. The tool allows you to maximize working capital by finetuning cash management.
- Asset counting. With the new SAP ERP financial, there is no recording depreciation anymore. Financial managers can now use ledgers and accounts to in the management of parallel valuation of assets. This new asset functionality is a big leap in the field of financial analysis.
Financial analysis has always been a challenging field in finance. There is way too much pressure for the people in charge to deliver services on time. SAP ERP financial solutions can help you ease the pressure by streamlining processes in the finance department.