Which is the Right Time to Implement Multi-Company ERP Solution

Big companies that function in multiple geographies can find the Multi-company solution as the ideal choice for their business. This software helps a business in integrating and streamlining the business processes along with providing a comprehensive view of operations on a global level. It also helps it in adhering to the diverse government compliances and speeding up the information exchange rate between the worldwide stationed stakeholders. Business management solutions are used by all sizes of businesses in order to control, monitor, and integrate the required business processes.

Mergers and Acquisitions or joint ventures are the ways through which a company expands. Due to this, they need integrated multiple systems that can be readily deployed in the recently purchased company with the central operating system being installed in the headquarters of the company.

Two or three such systems can be integrated without any hesitation. But when this number exceeds due to the expansion of the business, the number of systems increases. Hence, making the whole process way more time-consuming, expensive, and complicated too. Even more, if you are planning to set up subsidiaries or buy companies in other countries as the diversity in taxation, legal, and accounting standards also become a part of the process.

Reconciling Between Financial and Accounting Data Manually?

Finance and accounting reports are prepared on the basis of the rules and regulations of the country that a local office is operating from.

In a possibility where your business is not equipped with the, not only would you have to manually reconcile these accounting reports after wasting tons of your precious time but there will also be the possibility of it being littered due to the several human-induced errors. One of the key roles of a global ERP solution is to reconcile the financial and accounting data from multiple geographies after taking into account the effect of different tax and legal frameworks associated with it. The errors that are caused due to the manual data transfer from numerous spreadsheets are also eliminated with this. Not only this, but the financial close time also increases noticeably as the headquarters no longer have to be dependent upon local teams for synthesizing accounts across multiple formats.

Are you Having a Different ERP System for Managing Diverse Operations?

Are your subsidiaries are multiple in numbers and spread across different geographies?

What is your management plan for the operations taking place in those companies?

Are there multiple separate ERP systems that you have set up for streamlining operations in each of these companies?

Or even worse, are all the functions in these companies managed with separate ERP systems?

If your answer to the above questions is yes, then you might have to consider implementing a multi-company ERP solution that can help you in streamlining and standardizing the multiple operations that are being carried out in each of your companies. As it provides you with a single transparent view of every activity that is happening across all your businesses in their separate locations. This refers to:

A. Requirement of a fewer number of teams for the proper management of data.

B. Increase in the speed of information exchanges.

C. An increase in the decision-making process is crucial for every business.

Facing Trouble to Operate in Multiple Legal and Taxation Environments?

The government across the globe are constantly changing their tax rules and financial regulatory requirements from time to time. These require you, as a business manager, to bring constant changes in the way that your business processes too in order to deal with your businesses and their respective customers that are spread all over the world.

The significant benefits of a multi-company ERP solution for your multiple businesses are:

1. It accounts for the multiples tax schedules for strategic purposes

2. Updates currency conversion rates accordingly to the businesses’ specific geographical area

3. Updates latest regulatory requirements in accordance with the businesses’ geography.

Apart from all that, the best part about it is that a Multi-company ERP solution can generate invoices and receipts in multiple languages. Which provides a whole lot of relief from the unnecessary efforts of doing so manually. This is also a relief for customers as they can rest assured that they will receive the proper information that is updated in accordance with their respective location’s latest tax and currency regulations.

Conclusion

Making sure to implement a multi-company ERP solution will help you in consolidating the finance and accounts reporting along with facilitating the free flow of information along and between the diverse companies, in adherence with the company’s respective government compliances. Also, it will help in streamlining the business processes by eliminating the redundant processes and automating trivial operations in order to allow them to focus upon the critical mission tasks.