Whether you’re a small manufacturer with fifteen employees or a multinational distributor with vast networks, accurate and timely financial management must be a central function of the business to ensure long term success. In any organization, there are countless business-specific transactions requiring specified processes and controls in order to translate activity into bottom-line profit. Without a solid financial management foundation, business leaders may find themselves handcuffed with their inability to accurately gather, analyze, and understand the key metrics and trends that drive their organizations forward.
Epicor ERP version 10 software has one of the most comprehensive Financial Management systems on the market today. Last May, Epicor users issued a 4 out of 5 star rating for the Financial Management module. Mentioned utilities included Epicor’s versatility of its features and customizable business models for accounting and finance processes. The module links data and events in those work flows to each network group in the organization, which then writes the data into various sorting bins for ease of access. It enables users to take a hands off approach when compiling sophisticated reporting schemes—like the chart of accounts or financial statements. In addition, the software is robust enough to compound up to 366 fiscal periods.
The chart of accounts sub module is an ample function of Epicor that truly sets it apart from competitors. When a firm decides to upgrade or implement Epicor software, a common initiative we are presented with from our Datix clients is the chance for companies to build out a chart of accounts for the general ledger from scratch. We work with organization to ensure the set up eliminates invalid or inactive accounts, pulls only the most integral information to expedite system processes, and will empower any firm in their ability to make better financial decisions.
The complexity of Epicor’s chart of accounts can be built out for any size firm. If you are company who conducts transactions nationally or globally, the software can monitor transactions based on an unlimited number of criteria. The system can be built out to drill down to any stage of a transaction and viewed through a mobile dashboard. What’s even better, the FM is a straight forward system which, out of the box, can be a good fit for a smaller firm not needing many customizations. Some smaller companies rely on Quickbooks, implementing a job management software to track production or other operational activity. We never recommend two separate systems since companies can quickly lose value this way. It is always best to envelop all financial transactions inside one system. This eliminates the chance for reporting errors which leads to unclean data, slow system speeds, and possible non-compliance.
If a company services a changing market, we suggest setting up a new chart of accounts when implementing a new system in order to avoid using outdated records and slowing the reporting system. Clean data and alterations to the chart of accounts could be a more sound option. Financial information can be consolidated into a modified version of the last reporting system. However, these kinds of decisions will never be given a definitive answer until all teams understand which transaction data is most needed to comply with regulatory guidance, pay bills, or for taxable purposes, discovered during the initial phases of any project.
Another great tool integrated into Epicor’s Financial Management module is Asset Management. Some companies may integrate a third-party depreciation software which pairs well with the AM tool. The data entry on the front end can be managed through both systems. Depreciation is regulated through the third party system and reported in Epicor for financial statements.
If you’re a company undergoing regulatory compliance changes, massive capital expenditures, or buying new equipment, the asset management tool has a very cool unknown feature. The asset mass change capability issues mass changes to assets, changing depreciation parameters, an asset or and asset class. Mass updates occur only for values in the default register and leaves other registers unaffected. This utility will be especially useful in 2015. Forecasting trends show capital expenditure is up nearly 4 percent in the manufacturing industry and is expected to increase another 8 percent over the next two years. The industry is also moving away from on premise software infrastructure to cloud-based programs which include comprehensive analytic, mobile, and social platforms to increase ROI.
The deferred revenue tool is not used by many, but is a solid asset inside FM. The tool is a must-have solution for deferred consulting and service-oriented service work. It handles a range of deferred revenue tracking for maintenance and billable services. Contracts and amortization schedules are instantly generated based on input into the deferred revenue tool. It is an important asset to accurately report assets and liabilities on the balance sheet. It protects against treating unearned income as an asset, and safeguards the company from overstating their net worth on financial statements. Consulting agencies and service-oriented companies with maintenance schedules cannot realize any down payment or retaining fees until they’ve performed tasks outlined in a contract. The deferred revenue tool is a simple asset for these industries.
If you’re a multinational company—streaming data from a robust network of subsidiaries around the globe—the Currency Management tool in FM is helpful in managing exchange rates. However, there is a downside to this tool. It only works well if companies readjust exchange rates daily. One suggested solution is to automate Epicor to conduct a “call in” to a designated financial institution which then wires exchange rates into the system. It helps users not become subjected to such a cumbersome process. If you’re working in several countries, the process of entering exchange rates pulls users away from analyzing key transactions, making decisions, and issuing fulfillment documents required for regulatory guidance in their own company and the market in which they conduct business.
Epicor 10’s financial utilities fit well with manufacturing, distribution, retail, hospitality, and service industries and is effective for any size business. All financial and accounting queries are available via mobile, ad-hoc reports, and real-time dashboard data. Many businesses have chosen Epicor’s reliable Financial Module to make quick, highly informed business decisions. Ultimately, the utility is most effective in understanding the day to day cash flows and financial reporting needed to comply with changing regulation, enable communication with customers and staff, and reposition products for increased profitability.