Why companies in the Distribution Industry should invest in their Accounting and Finance Departments
Posted on: March 3, 2020 | By: Guy Logan | Microsoft Dynamics AX/365
Within the Distribution Industry, Finance and Accounting Departments are often overlooked. These departments take a backseat role because businesses prioritize moving product and generating revenue. If accounting and finance is not what generates revenue, why take the time to invest in it? Investments in these departments through implementation of business management systems though, will dramatically improve data accuracy and provide more control to make better decisions on short and long-term strategies to increase purchasing power.
Difficulty combining data to create accurate reports:
Currently, most wholesale and distribution businesses are not able to keep their financial data in a centralized location. When you are trying to gather data from multiple systems to look at overall business financial reports, combining data can be extremely difficult. For some businesses, the issue lies in operating an outdated system or juggling multiple ERP systems to meet their different needs. These issues result in accountants being forced to input data manually in order to get a better picture of company-wide financials. The more manual, the more risk to introduce data errors.
Lack of confidence in the data/accuracy:
Having easy access to data provides the company with quick and accurate information. A common issue is a decline in confidence with the information provided due to the lack of integration previously mentioned. When we turn to accountants to manually enter information, there is more room for error and misinterpretations. This not only impacts the reports that are drawn from the information, but also increases the cost of operations and limits time spent on growth opportunities.
How to fix these issues
A new ERP system would automatically generate financial reports, saving your accounting and/or finance group’s time and reducing frustration. In the end this gives them increased control to track budgets, calculate cash flows, and analyze how planned estimates compare to actual figures. These perks are not exclusive to the accounting and finance department though. All departments at a wholesale distribution company would stand to benefit from implementation because improved data will ensure that all financial decisions can be executed with absolute confidence.
Which ERP system is a viable fit for the Distribution Industry?
Microsoft Dynamics 365 for Finance & Supply Chain Management meets these aforementioned challenges. This ERP is effective in serving up information to all different consumers of the data. From the C-Suite to the shipping docks, users can obtain accurate, up to date information allowing them to make informed and actionable decisions with production (where applicable), freight, and duty costs. Thus, allowing your business to focus on EBITDA value-added activities instead of re-entering data from multiple systems. Furthermore, accenting Dynamics ERP with Power BI will provide end users with trending reports and offers various slicing & dicing options. This allows for an easier and more accurate process to combine and analyze data based on the specific product lines that you want to look at.
Logan Consulting
If you are interested in understanding more about Microsoft Dynamics 365 for Finance and Supply Chain Management, please feel free to reach out to us at info@loganconsulting.com or (312) 345-8817.
Logan Consulting is a professional services firm committed to helping businesses improve business processes to get the most from their ERP investments.