Philippine businesses are now operating in the information age. Thanks to the speed at which technology is evolving, it’s no longer difficult for both small and medium-sized enterprises (SMEs) as well as large corporations to harness the power of big data for themselves. Data can now be culled from a variety of sources, such as smart devices, images, and even social media, and it can also be processed in a variety of formats. Companies can use this data to widen their outlook and get a better handle on different aspects of their business performance, particularly their finances.
That said, for all the possibilities they can expect from the age of information, businesses should also expect some challenges down the line. The larger and more complex their data sets are, the more demanding it may be to execute specific tasks, like following regulatory compliance with the Philippines’ Bureau of Internal Revenue (BIR) or making preparations for annual general meetings (AGMs) with shareholders. There’s no doubt that traditional methods for accounting, bookkeeping, and financial reporting—i.e., those that rely primarily on manual input, sorting, and analysis—will no longer be sufficient in keeping a business up-to-date with the changing demands of its industry and its chief regulators.
If you head a large business in the Philippines and anticipate hurdles like these on your journey towards growth, one of the best investments you can make for your company’s finances is by introducing an enterprise resource planning (ERP) solution with extensive accounting, analytics, and reporting features. SAP Business One fits the bill of a computerized accounting system BIR large taxpayers can comfortably use for compliance purposes, as well as for managing complex data on sales, inventory, accounts payable (AP), accounts receivable (AR), corporate banking, and the like.
To illustrate, here’s how ERP and accounting software like that of SAP Business One can improve your analytical capabilities and simplify the often-burdensome tasks of financial reporting and regulatory compliance.
It Enables Full Visibility and Control Over a Business’s Financial Data
One of the greatest advantages of owning an ERP and accounting solution like SAP Business One is gaining mastery over a wide and updated pool of financial data. Instead of manually sorting and reconciling your data from multiple documents or applications, you’ll be able to use the ERP’s single source of truth (SSOT) architecture to consolidate it and make it available to authorized users in real time.
You can count on the ERP system to manage your financial data in a holistic way and reflect the “bigger picture” behind your company’s financial performance, in consideration of factors like your profitability and your effectiveness at asset management. The tougher it becomes to manage your large and increasingly data-driven business with multiple branches and subsidiaries, the more advantageous it will be for you to achieve full data visibility and control with your ERP and accounting solution.
It Streamlines Financial Analysis and Financial Decision-Making
A good ERP solution that’s worth your investment will do more than unlock full data visibility and improve rote accounting and bookkeeping tasks through automation. It will also streamline the process of financial analysis for the company, which will make it easier to enact decisions with regard to individual projects, budgets, and investment opportunities.
With high-powered analytical capabilities on your side, you’ll be able to see where your business stands in terms of its day-to-day financial performance and evaluate its readiness to pursue new ventures. You’ll also be able to craft responsive financial policies and devise long-term financial plans that are more likely to benefit the business.
It Simplifies Report Generation and Relieves Common Burdens from Regulatory Compliance
Most enterprises regard regulatory compliance as a thorn in their side due to the stress that typically come with meeting compliance deadlines. If the finance and accounting staff only uses manual methods to put together reports and prepare other requirements for compliance, then it can indeed be cumbersome as well as difficult.
But much of the pain that comes with meeting compliance deadlines can be eliminated with a BIR-compliant ERP solution like SAP Business One. You and your staff can easily use the ERP system to generate BIR-compliant accounting reports that are both complete and accurate, in much less time than it takes to do the same manually. That means that you’ll worry less about submitting late or erroneous reports and being confronted with hefty penalties from regulators.
It Will Improve Your Company’s Financial Housekeeping Processes
Finally, an ERP and accounting solution will allow your company to acclimatize to the rapidly evolving business landscape and still observe a high standard for financial housekeeping. Now that there’s a way to keep your eyes constantly trained on your business’s cash flow, profitability, and expansion potential, it will also be easier to uphold a culture where transparency and accountability are paramount.
You’ll be able to practice sound financial management and lead a company that lives up to values like integrity, effectiveness, and responsibility to both your stakeholders and your customers. These values, along with prudent use of ERP technology, will allow your company to stand out and enjoy many more years in business.
Takeaway: Putting Your Business at an Advantage in the Age of Information
It’s easy to be overwhelmed by how quickly your industry has been transformed by big data and how this affects your company in terms of its approach to finances. But a solid ERP and accounting solution can help you deal with the demands of the information age and clear your goals with regard to regulatory compliance, financial housekeeping, and financial decision-making.
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