Enterprise accounting software differs from normal accounting software in terms of the extended capabilities (that are in addition to the core accounting functions) the former provides to manage larger business requirements. These requirements can include inventory management, project management, customer relationship management, and support for multiple currencies, regulations, and tax systems.
These capabilities make the software specifically useful for enterprises that typically deal with multiple regulations and markets across subsidiaries and countries. However, small or midsize businesses that want an integrated view of their operations while managing financial aspects can also benefit from this type of tool.
We’ve prepared this buyers guide to help you understand enterprise accounting software and its key features.
Here’s what we’ll cover:
What is enterprise accounting software?
Enterprise accounting software is a tool that goes beyond core accounting functionalities to support other business requirements such as inventory management, customer relationship management, and procurement.
These additional capabilities are supported by modules that are either part of the tool or available as add-ons.
Inventory reports in QuickBooks Enterprise (Source)
Common features of enterprise accounting software
The range of enterprise accounting software features varies with vendors. However, some common features remain largely consistent across solutions.
|Accounting and financial consolidation
||Manage core accounting functions such as journal entries, accounts receivables, and profit and loss statements in multiple currencies. Prepare consolidated or subsidiary-specific financial statements in the applicable currencies.
|Taxation and regulatory compliance
||Manage taxes and comply with regulations across the different legislations/jurisdiction applicable to operations.
|Reporting and analytics
||Generate consolidated as well as subsidiary-specific operational reports by collating data from multiple sources. Run analytics on available data to identify trends or predict business scenarios.
||Leverage industry- or process-specific modules, such as customer relationship management, purchasing, and marketing, to handle non-accounting functions.
||Manage payments across business units/subsidiaries over multiple channels.
What type of buyer are you?
There are two broad types of buyers that enterprise accounting software caters to:
- Enterprises looking to manage geographically scattered operations: Enterprises typically operate in multiple markets/jurisdiction, which could be across states or countries. This exposes them to varied currencies, tax systems, and accounting standards. The software’s extended capabilities in handling these requirements make it ideal for such buyers.
- Non-enterprise buyers looking for a unified business view: These buyers could be small or midsize businesses that don’t necessarily operate in multiple markets/jurisdiction but want a single software platform that provides for consolidated management of business operations. The software’s non-accounting modules for handling other business functions serve this purpose.
Benefits of enterprise accounting software
Let’s look at some key benefits that will be of value to you.
- Data-rich reports: The tool helps generate reports that cover more than standalone balance sheets, profit and loss statements, and income statements. Enterprise accounting software can help generate cash flow projections based on inventory levels, orders in the pipeline, and accounts receivables aging. Instead of merely informing about the financial position of a business, the software provides broader insights into multiple business functions.
- Reduced data duplication: Using disparate tools to handle various functions creates silos that lead to data duplication (the same data stored in multiple systems). The software solves this via its additional modules that can be integrated to eliminate data silos. This also helps improve productivity by reducing the effort required for feeding redundant data to multiple tools.
Key considerations for selecting enterprise accounting software
Since the software cuts across business functions, customizability is the key consideration while selecting the right product. It’s a broad aspect so we have broken down the customization areas interested buyers can look into.
- Industry of operation: The kind of industry you operate in will decide the specific modules you may need in addition to the accounting module. For example, a manufacturing business will require inventory management capabilities while a marketing agency will need a customer relationship management module.
- Additional capabilities: These requirements are not industry-specific and depend on the unique needs of a business. Some examples are multilingual support, crypto-currency integration, and role-based access to users.
If you wish to further understand the features and benefits of enterprise accounting software, you may fill out this form for a no-obligation, free consultation. We have helped numerous businesses avoid costly mistakes and pick software that is best for them. Our advisors will understand your requirements and guide you in shortlisting the most suitable options for your business.
Note: The applications selected in this article are examples to show a feature in context and are not intended as endorsements or recommendations. They have been obtained from sources believed to be reliable at the time of publication.