Joined up Finance

Integration: The top 9 business benefits, and why true integration is easier to achieve than you might think!

Contents Summary

Find out how integration can:

• Reduce administration
• Eliminate errors
• Enable quicker billing
• Enable slicker credit control
• Lead to better budgeting
• Contribute to more accurate reporting and informed management decisions
• Save on IT costs
• Improve quality of fi nancial data
• Enable faster & improved customer service

We all know that keeping our different IT systems in step with each other can be a constant battle. In particular the finance system is perhaps one of the most reliant on obtaining new information from other applications to run successfully. Despite this, many organisations are put off by full integration and instead substitute this for manual attempts to shift data from various systems back to the core accounting platform, or rely on other approaches such as batch processing. However these methods have many drawbacks compared with true integration that delivers automated updating of information between systems in real-time.

Here are some of the benefits you could be missing out on:

Reduced administration

Hundreds of man hours per month could be saved if you introduce automatic updating of information to the finance system. Without this, not only do staff need the discipline to remember to copy data from one place to another, it also takes a huge amount of time in re-keying, formatting and checking. It makes far more sense to enter the data once and let technology take care of the rest. With modern integration methods there's no need to worry about varying file formats; you can simply use what are known as ‘feeders' to monitor activity in one application and ensure it is replicated in the core accounting system.

Elimination of errors

If you have a number of different parties manually manipulating data then it will inevitably result in multiple errors, duplication of records or even lost information. Through integration you can side-step the ‘middle ground' where mistakes occur, making your finance data more up to date and reliable.

Quicker billing

Real-time updating of information means that you can prepare invoicing as soon as a product or service has been sold or delivered. Not only can you get the bills out faster you can also ensure that the figures are accurate and are less likely to be disputed. Taking into account all the latest information from every department also means that no sales are overlooked and you bill for everything you sell.

Slicker credit control

Knowing who owes what and when can be crucial if you want to maximise your cash flow and chase outstanding debtors. By integrating the core finance system with other systems such as CRM or stock, you can create high level reports allowing managers or even account managers to spot customers that may be in trouble or identify those that should be given shorter or longer credit terms.

Better budgeting

If all your departmental managers have up to date information on expenditure then there are no excuses for over-spending. Ensuring that budgets are always current means that both managers and finance professionals can keep a closer eye on purchasing, resulting in improved cash-flow and more effective future planning.

More accurate reporting and informed management decisions

An end of month report by its definition is out of date by the time it is compiled. Why not rely on daily reporting that can be created by managers themselves? With a joined up finance system it is now possible to allow owners, department heads and/or budget holders to see at a glance summary information on a range of subjects, knowing that the facts and figures are based on information that has been gathered in real-time.

Especially during more turbulent times owners or senior managers want the reassurance of knowing exactly what is happening in the business. With more reliable figures you can spot a problem with dwindling sales, outstanding debtors, soaring expenses or even a new sales opportunity, and take action before it is too late.

Save on IT costs

When older legacy or bespoke systems become difficult to extract data from, it may be tempting just to replace them. However, rather than write off the investment, integration tools are capable of monitoring all types of third party applications regardless of the operating systems involved and without needing to involve the original vendor.

Improve quality of financial data

Once you adopt a fully integrated finance system it also encourages better discipline across the organizations as each department knows that information will not be requested on a particular date but will be automatically updated. This means there is greater onus on staff to be more careful and prompt in entering data.

Faster & improved customer service

If you want to be more responsive and be aware of customer trends and demands, then linking up all your disparate IT systems with your finance engine can help. At a glance you can give customers updates on orders or pull up their latest statements. The sooner you can dispatch goods or services the happier your customers will be and the sooner you can start the billing process.