Accounting & Finance Transformation Case Study Solution
Introduction
The enterprise resource planning refers to the management of organizational accounting, and financials through integrated information system that provides various services throughout the organization. Meanwhile, it is a complete package for the process involved into the accounting, cost accounting, managerial accounting, inventory management, material management, financial reporting and preparing the financial statements, and generating reports about the operations.
Similarly, the enterprise resource planning is a complete package of the services for the organization, connected, and integrates all the departments of the organization in one integrated software virtually. Meanwhile, the purchasing department could track the record of the inventory, and material in the warehouse, and can make appropriate purchasing decisions to what material is needed to be ordered, or which is slow moving inventory. Meanwhile, all the processes are standardized.
However, it is important to understand the complications and complexities in the management of the organizational operations through the integrated ERP system. Meanwhile, it is also important to understand the key performance indicators of the ERP system that should be benchmarked, and baseline the integrated system’s benefits. Meanwhile, it is also vital to approach the critical success factors in the ERP system. Therefore, what could be the drawbacks, and risks involved in the implementation of the system.
Consequently, the whole process of the accounting and financial transformation of the project would be needed to be evaluated over the key performance indicator, and critical success factors, by understanding the benefits and risks associated with the transformation, and how these risks could be mitigated, and managed.
List of target Benefit of Transformation
- Managing Finance related Data
The company would be able to manage the financial data in more organized way, and would be readily available over fingertips due to the increased feasibility, and accessibility. The financial data includes the financial statements that company would have real time reporting and could manage the portfolio investment, lending, retirement, and insurance data as well. Meanwhile, it would be a complete package of integrated financial services of the company.
- Manage General Ledger Accounting
The most complicated accounting process is maintaining the general ledger in the company because there are many accounts, and subaccounts, so balancing them, and recording each transaction into the right account is very necessary for proper reporting. Therefore, the company would be able to manage the general ledger more effective and efficiently.
Since, the ERP would provide user friendly, and customizable service to the user. Meanwhile, the efficiency of the reporting, and appropriate and correct could be generated, because the general ledger could be managed properly in the system. Indeed, the effectiveness, and accuracywould increase in the general ledger.
- Manage Fixed Asset Accounting
The company could track record of the fixed assets in the system such as the building, property, plant and equipment, and some other types of fixed assets. Meanwhile, not only the record would be kept, but the depreciation would also be calculated, and could be managed to make appropriate decision making. Indeed, the record of the repair and maintenance could also be managed.
- Generate Management Reporting
The company would be able to get multiple reports at the same time such as key financial reports that includes current account reports, working capital, and profit and loss. Meanwhile, key operations reports could also be generated on real time data such as the sales reports, production report, inventory and material reports well integrated and well organized along with the forecasts as well.
- Manage Financial Planning and Administration
The company would be able to forecast the sales, prepare budget, and prepare financial reports, and manage the employee’s related data, and issues such as payroll management, medical allowance, insurance, retirement fund or the pension fund. Similarly, the system would make the administration on the ease, where there efficiency level would increase due to the integrated information system under their fingertips.
- Manage Governance Risk control
The company would be able manage the record of the operations process, and organizational structure, and inform, direct, monitor the process of the organization and provide guidance to the management. Meanwhile, the risk management would also be managed, and it would also ensure the compliance as per the guidance.
Key Performance Indicator
- Managing Finance related Data
- Accuracy in financial decision
- Manage General Ledger Accounting
- Declining errors in recording transactions
- Manage Fixed Asset Accounting
- Valuable asset
- Generate Management Reporting
- Accuracy in Reporting
- Manage Financial Planning and Administration
- Efficiency in operations
- Manage Governance Risk control
- Compliance
Improvements in the areas
The ERP system is best integrated system and complete package of solution to the company. However, it is important that how efficiently company is working on it. So, the training in this perspective is very important to be provided to the employees in the organization. Similarly, it would ensure the effective use of the system in the company...................
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