Functions of Accounting Module in ERP System
Accounts is one of the important departments in any organization. In simple words, you can’t run a business without the accounting functions. It is important to know the cash flow within departments, analyze profit or loss, Ledger reports and TDS computations. These information should be readily available with accurate data in order to understand the status of a business operation as well as helpful for auditing purposes.
The accounts department has many confidential information about a business’ financial resources. Hence maintaining all these data by historical method of huge piles of files will be much difficult. Having an accounts module within an ERP Software is helpful for the organization to keep information on track. The main benefit is that the module integrates with all other departments especially beneficial in a manufacturing industry where purchase happens frequently. Hence the accounting module tracks each and every transaction done and generates reports on financial strength. The automation templates eases the accounts entries, eliminates errors & miscalculations, ensures the right format of invoices and even proper taxation.
Let us discuss some of the features of Accounting Module in Freedom ERP.
Voucher : There are different types of vouchers based on the purpose it is used for. In simple terms it is a document proof for redeemable transactions made on a purchase or sales.
Bank : It shows you the bank reconciliation statements (summary of business transaction details with balance sheet) and cheque details.
Petty Cash : This is a small amount of money used for small expenditures without the need to write cheque. Thus this feature allows you to verify the details against cash request / cash issue / cash receipt / bill settlement.
Ledger Report : Enables you to generate report summary details on every single transaction done in the organization. You can also customize the reports as per your requirement.
GST Return : GST filing is made easy with ERP systems as it is directly integrated with the Government portal and also ensures the right format of invoices being generated.
Outstanding : This feature shows you all the outstanding amount details in terms of Receivables / Payables / Bill Reference with custom duration and company wise.
TDS Computation : Tax Deducted as Source (TDS) is the amount deducted by a payer for any kind of service or job done. Each product/service has its own percentage of deduction and it is predefined and automated in an ERP software making error free and saves time.
MIS : MIS reports can be generated to analyze information like Trial Balance / Profit and Loss / Balance Sheet / Stock Account / Budget Vs Actual / Ratio Analysis.
The overall benefits of Accounting features:
- There is no need for spreadsheets where you can miss accuracies sometimes. Also saving reports and bills as papers and storing it in huge piles of files is very difficult to maintain as it takes more physical space, less secured and takes time to fetch data when needed.
- The ERP Software integrates with all other departments where purchase and sales happens. This is easy for the accounts module to pass bills instantly and accurately without missing any details.
- With ERP, you can define your own budget and track data with respect to actual vs spent. This helps you to be stable in terms of the company’s financial status.
- Generating GST with respect to the Government norms and uploading directly to the portal, saves a lot of time, avoiding the last minute hassles.
- With accurate reporting and tracking, no payments will be gone missing. With upcoming notifications you can ensure the payment is done on time as well.