We all like to have extra cash in our wallets. But, when running a business, cash is king, and a business runs on its cash flow. A shortage in your business cash flow can put a halt on your growth. On the other hand, a strong cash flow enables business growth. The tools to improve your cash flow may be right at your fingertips. By using your ERP system resources more effectively, you can keep your business on the road to a positive cash flow.
Don’t have an ERP system? Check out our free e-book, Thinking About ERP: The Executive's Guide to Setting Strategy for Selecting, Implementing, and Operating ERP.
What Is an ERP System?
An ERP or enterprise resource planning system is business process management software. It integrates and automates many back-office functions to help you improve productivity. ERP systems such as Sage 300 and SYSPRO offer advanced modules to provide you with even greater depth and breadth in your solutions.
Cash Flow Problems? Your ERP Can Help with That
The key to understanding how an ERP system can help with cash flow problems is to think about what it does best: automate and integrate. It can automate routine tasks such as billing and invoicing, and integrate with systems such as accounting and finance to run reports on unpaid invoices, past due invoices, cash flow, and much more.
Your ERP system can help you improve your cash flow in the following five ways:
- Report late purchase orders: Orders may not be shipping out of your warehouse because only partial orders arrived. With late purchase order reports, you can see at a glance what you may be missing to fulfill orders. You can then follow up, improving both cash flow and customer service.
- Run purchasing and planning reports: Purchasing and planning reports can help you plan your inventory more effectively. Businesses often have most of their capital tied up in inventory purchases, and any excess inventory merely takes up space and bogs down money that could be spent elsewhere. Purchasing and planning reports can help you decide what to restock and when to order it. It helps you plan more efficiently and effectively for the future to keep stock levels sufficient without creating overages.
- Streamline workflows: Improving efficiencies can save you time and money. Remember that an ERP system automates as well as integrates. What processes are you doing manually now that can be easily automated in the ERP system? Many of these processes, once automated, can save considerable time, thus freeing up personnel for other tasks.
- Follow up on past-due invoices: Another benefit to an integrated system is that you can easily see which invoices are past due. Following up on open invoices can add cash back into the cash flow and close out some past due accounts. It is easy to see these open invoices on an ERP system.
- Know your cash flow: ERP systems provide you with accurate, real-time reports. These reports can help you keep a close eye on your cash flow. Many companies now struggle to understand their cash flow simply because they lack data on specific transactions, patterns, and more. With easy-to-run reports, you can quickly review your current cash flow situations. More importantly, you can get to know your cash flow and how it fluctuates on a daily, weekly, or quarterly basis. It’s the start of regaining control over your cash flow.
Let PositiveVision Get You on Your Way to an ERP Solution
Whether you are looking to update your current ERP system or implement a new one, the consultants at PositiveVision can help you get started. With versatile ERP solutions like Sage 300 and SYSPRO we can help you work towards keeping a positive cash flow. Contact us today to find out more.