Optimization of Accounting and Financial processes and KPI Measurement with ERP

Abstract

An Enterprise Resource Planning (ERP) software solution is a modular software system that newlineintegrates the main functional areas of business process into a single system. This leads the newlinebusiness to automate many processes, and thus become more efficient. There are numerous newlinebenefits generated by the ERP tool. It raises efficiency, helps beat the competition, facilitates newlinesuperior forecasting, integrated information, eases inter-departmental collaboration, newlinestreamlines processes, enhances customer service and eases regulatory compliance. newlineOrganizations have to spend huge money on ERP Infrastructure and implementation. There is newlinea periodical Upgrade cost, Enhancement cost, ERP D2D maintenance cost, Yearly Licensing newlinefees, User s training cost, etc. At this time, it is very essential to find out a way to Optimize the newlinefinancial processes to get the maximum benefit of ERP and to achieve the required ROI. Also, newlineit s time to find out the impact of role based / individual KPI verses process KPI in optimizing newlinethe financial and accounting processes. FandA process optimization can bring to a company a newlineway to reduce cost, time and resources spent in a process, leading to better business results, newlinespeed up organization growth and increase profits. newlineSeveral studies and research were conducted during the 1990s and early 2000s on selecting the newlineright ERP software, methods of implementation, measuring the TCO and ROI of ERP newlineinvestments and measure of success or failure of the implementation. Most of the research in newlineERP systems is related to the success and failure in ERP, benefits and barriers to corporate newlineperformance management system, challenges involved in implementing of ERP, factors related newlineto the intended use of the ERP systems. From KPI standpoint research have been done on newlineIndividual or roll based KPIs, to gauge the performance of their employees, which can lead to newlineenhance the performance at individual level and at a specific department level. Process based newlineKPI while using and implementing ERP has also a major role to optimize the Accounting and newlineFinancial processes, as well as business process. Hence there is need to evaluate and find the newlinesignificance relation between process KPI and FandA process optimization to improve the newlineAccounting and Financial processes performance while using ERP system. As a result, the newlinereviewed literature has not dealt with the optimal processes needed for financial management; newlinenor has it defined the right approach for implementing optimized and KPI based processes in newlineERP. It is this gap; the present research endeavour seeks to bridge. Many of these organizations newlinehave also defined the role based KPI (Key Performance Indicators) to gauge the performance newlineof their employees. In the circumstances , a few questions arise: whether the KPI be defined at Hence the study seeks to examine the current status of financial management processes in the newlineorganisations that have implemented ERP. Having done that, the study seeks to determine the newlineoptimal processes for financial management. The next step has to be to gauge the performance newlinepost ERP implementation and hence the study defines an approach for implementing optimised newlineand KPI-based processes in ERP. newlineThrough the findings and analysis from the responses from the business team members and newlineERP professionals, and case studies the research concludes that a well-defined approach to be newlinefollowed by the organizations in implementing optimized and KPI based processes in ERP. newlineThe KPI defined should be based on processes so the business will know where exactly the newlinehiccup, major or minor, crops up. After all, it is a teamwork that matters if the ERP has to newlinedeliver value for money. Processes obviously should move in perfect lock-step with teamwork newlineif the ERP has to succeed across the business . The researcher strongly recommends that newlinebusinesses put in place process-based KPIs in the circumstances. KPIs based on the role played newlineby individuals cannot be as effective, to put it differently. newline