Are you struggling with cash flow problems? A cloud ERP solution can help.
As a small or mid-sized business owner or manager, you know that cash flow is the lifeblood of your company, especially if you're a rapidly growing manufacturing or distribution business. Effective cash flow is crucial to your long-term success. A positive cash flow balance means your company is operating smoothly, and the higher it is, the more opportunities you have for growing your business and further optimizing your operations. Positive cash flow allows you to expand your operations, hire more staff, invest, focus on acquisitions, or even as a cushion against future financial challenges. If you struggle to manage your cash flow effectively, a cloud ERP software is the answer.
What is Cloud ERP?
Cloud enterprise resource planning (ERP) software is hosted and managed by an ERP provider and allows companies to access the system using the internet. Like traditional ERP systems, cloud ERP can integrate and automate a company's critical processes and improve collaboration between various departments by providing a single source of truth for your business data. Cloud ERP has a lot of benefits, including reduced costs, mobility, ease of access and ability to scale, compared to its on-premises counterpart. A cloud ERP solution can help you turn margins into cash, reducing costs.
Here's How a Cloud ERP Solution Can Improve Your Cash Flow
Improved inventory management
How you manage your inventory directly impacts your cash flow. Poor stock management drives up your costs, and excess inventory ties up your cash that could be better invested in other areas of your business. You'll also have ongoing costs of holding the stock. Conversely, stock-outs also affect cash flow as they can lead to lost sales and reduced customer satisfaction, reducing profitability. Cloud ERP can help you manage your inventory in the following ways:
> Purchase and planning reports
With purchasing and planning report, you'll be able to make better inventory decisions. You'll know when you need to restock, what stock is currently in excess, and when the best time to restock is. You'll have better insight into demand and will help you streamline ordering processes and negotiate better rates based on quantities.
> Late purchase ordering
Late purchase order reporting will help you resolve issues that delay your fulfillment (which impacts invoicing and payment, and therefore cash flow). It lets you discover what isn't shipping and enables you to follow up with the warehouse, supplier, and customer.
Better invoice management
Your cloud ERP software will improve your invoice management process. You'll be able to automate invoice creation, email them in batches, and quickly check which invoices are overdue as all your information is stored in one central location. You can see which invoices are open, which are dated and monitor the frequency of payments. Keeping on top of overdue invoices will help keep cash flow in the black.
Workflow automation
Do your business processes involve a lot of manual, repetitive tasks? By automating routine tasks like billing and invoicing, you'll save time, reduce the time from an order to invoice, reduce human errors, and free up your employees to work on revenue-generating tasks instead.
Real-time reporting
With cloud ERP software, you'll be able to easily access accurate and real-time financial reports and understand how your company is performing. You'll gain specific data on transactions, patterns, and fluctuations of cash flow. This makes it easier to monitor and take proactive steps to manage your cash flow.
Is Your Business Ready for Cloud Transformation?
Cloud ERP software provides visibility into your operations and financial data, which results in easier decision-making, improved forecasting, and efficient processes, all of which positively impact your company's cash flow. Book a free consultation with the Kwixand Solutions team to discuss whether cloud ERP is the right fit for your organization and how to take the next steps.