Guide to Using ERP Accounting Software for Businesses


An enterprise resource planning (ERP) software is a solution that is primarily used to manage day-to-day business activities, such as accounting, budgeting, supply chain operations, financial planning, project management, etc.

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

What can ERP mean for my company?

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

This improves the process of accessing information, streamlines administrative operations within the organization, streamlines internal communication and automates tasks. All this 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?

On-premise ERP


This is a type of ERP that runs on the company's internal servers and in locations that can be managed by the person in charge. This type of ERP is ideal for companies that must protect and monitor system data, it also offers the control and security of using a personal IT infrastructure that connects to your people, systems and processes.

Cloud-based ERP

On the People Managing People portal they explain "This is an ERP software solution hosted on a cloud computing platform, as opposed to on-premises systems running on-site. It allows companies to access services over the Internet. Vendors host the ERP software in the cloud and provide it to companies. This eliminates negative factors such as upfront licensing fees."

Hybrid ERP


This type of ERP combines the two explained above: an on-premise system and a cloud solution. It is a modular, multi-sourced application and ideal for modern companies that operate digitally.

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

How to use ERP accounting software

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

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

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

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

Invoicing

This module is a great help to streamline and automate many of the procedures related to invoicing. "Invoice automatically according to sales orders, delivery orders, contracts or time and material," says Odoo on its website.

It allows you to:
  • Create invoices based on estimates sent to customers.
  • Send formal invoices to customers with a single click.
  • Email invoices in PDF.
  • Receive online payments through services such as PayPal, Ingenico, Stripe, and others.
Accounting

Accounting is one of the most time-consuming tasks in a company, but it doesn't have to be a sacrifice. With this Odoo module, companies can do more in less time. It allows you to synchronize bank statements automatically with your bank; create invoices, manage recurring invoices and track payments. To top it off, it lets you manage vendor invoices and displays a balance of invoices still 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 a software like Odoo ERP. This Inventory module enables a better organization of your company's warehouses, keeping the inventory of existing products up to date.

"Odoo's double-entry inventory does not compute with receipts, issues or inventory transformations. Instead, all transactions are considered stock movements between locations," Odoo added in an article.

Purchase

On the operational side, managing purchasing in a business can be cumbersome. The bigger the business, the worse this problem becomes. Although this Odoo module makes it possible to efficiently and easily manage all supplier orders and customer purchase orders.

It allows:
  • Automatically send quotation requests to suppliers.
  • Easily import price lists and references from suppliers to make smart purchasing decisions
  • Track the availability of a product in supplier inventory

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