Top 5 reasons why your ERP providers’ FP&A solution is the better choice
Enterprise resource planning (ERP) systems are critical for managing business operations and processes. The financial planning and analysis (FP&A) module is an integral supporting part of an ERP system, providing essential financial analysis, scenario management, and forecasting capabilities.
While there are standalone FP&A solutions available in the market, ERP providers' FP&A solutions offer unique advantages by helping connect operations with strategy.
In this blog, we will discuss the top five reasons why ERP providers' FP&A solutions are the better choice for many organizations.
1. Integration with core financial processes
The FP&A solutions from ERP providers can be easily linked with essential financial management processes, such as the general ledger, accounts payable, and accounts receivable. This connection guarantees that the FP&A module can access the latest and most precise financial data.
As a result, it facilitates more reliable financial analysis and forecasting, leading to better decision-making. Moreover, with an integrated solution, users can conveniently retrieve financial data from other parts of the ERP system, including sales, inventory, and procurement.
This ensures that users have a comprehensive understanding of the business, which enhances the accuracy and efficiency of their analysis.
2. Ease of Use and Familiarity
FP&A solutions offered by ERP providers are designed to be user-friendly, making them accessible to a wide range of users. These solutions are integrated into the ERP system; hence, users are already familiar with the interface and functionality, reducing the learning curve.
Moreover, users can access the FP&A module from the same system they use for other tasks, eliminating the need to switch between systems. This not only saves time but also ensures consistency in data input and reporting.
3. Scalability and Flexibility
ERP providers' FP&A solutions are designed to be scalable and flexible, making them suitable for businesses of all sizes and industries. These solutions can accommodate a broad range of financial planning and analysis needs, including budgeting, forecasting, and reporting.
Additionally, they can be customized to meet specific organizational needs and requirements. As the business grows and changes, the FP&A module can adapt to new processes and workflows, ensuring that it remains a valuable tool for financial analysis and forecasting.
4. Security and Compliance
ERP providers' FP&A solutions are designed with security and compliance in mind. These solutions adhere to strict security standards and protocols to ensure that financial data is protected from unauthorized access and breaches.
ERP providers' FP&A solutions also comply with industry-specific regulations, such as International Financial Reporting Standards (IFRS). This ensures that businesses can meet regulatory requirements and maintain the integrity of financial data.
5. Cost-Effectiveness
ERP providers' FP&A solutions are often more cost-effective than standalone solutions. Since these solutions are part of the ERP system, there is no need to invest in additional software or hardware.
ERP providers' FP&A solutions also offer a lower total cost of ownership (TCO) than standalone solutions since maintenance, upgrades, and support are included in the ERP system's overall cost. This makes ERP providers' FP&A solutions a more cost-effective option for businesses that need financial planning and analysis capabilities.
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What the expert analysts say
Leading independent market analysis firm BARC recently explored the subject of FP&A software selection and how organizations can source the right solution to suit their needs.
BARC stated in their report that choosing a software tool from the portfolio of your ERP supplier can offer advantages, especially in terms of superior technical integration.
The technical advantages include predefined interfaces and logical connectors for accessing data that can be updated as required to ensure smooth data flow.
There are also business and functional advantages, such as having access to comprehensive prebuilt solutions and content modules that complement performance management components.
You can find more in-depth insights from BARC in their detailed report here.
How Unit4 ERP and FP&A work seamlessly together
Choosing a standalone system may seem like a simpler choice at first, but integrating your FP&A with your ERP provides several advantages. One of the key advantages of using an integrated FP&A solution, such as Unit4 FP&A, is the seamless flow of data between the ERP system and the FP&A software. This eliminates the need for manual data entry and reconciliation, saving time and reducing the risk of errors. By leveraging the power of automation and advanced analytics, organizations can gain real-time insights into their financial performance, identify trends, and forecast future outcomes with greater accuracy.
Unit4 FP&A also provides organizations with a centralized hub for financial reporting and analysis. With real-time dashboards and interactive visualizations, decision-makers can easily access and interpret financial data, empowering them to make informed decisions faster by accessing a single source of truth. It facilitates collaboration and communication among stakeholders, enabling better alignment and coordination across the organization.
With an integrated solution, your data will be consistent across both your ERP and FP&A, meaning that you won't have to worry about data discrepancies. You'll also be able to quickly and easily consolidate data from across your organization, which can save you valuable time during your reporting cycles. And, because you're working with one integrated solution, you'll have access to a single set of reporting tools that can be customized to meet the unique needs of your business.
