Five ways ERP can aid cashflow
Enterprise resource planning software helps organisations to address problems caused by manual, outdated systems, especially when it comes to cashflow.
In a time when digital transformations are revolutionising the way businesses are run, it is widely accepted that those failing to keep up risk losing out on market share in their industries.
ERP is an important digital tool for companies in all sectors. SAP Concur has identified five ways ERP solutions can help improve cash flow for organisations:
1. Automate invoicing
With an automated solution, organisations don’t need to wait until the next billing cycle to send an invoice. Moving from a monthly billing cycle to one that is on-demand lets businesses bill as soon as the work is completed. By billing invoices faster, businesses can get paid sooner.
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2. Take control of overdue invoices
An integrated ERP system makes it easier to see which invoices are outstanding by putting all receivables and collection information in one location. Organisations can use dashboards to see what’s due and the frequency of payments, along with all information about collection efforts in process.
3. Make inventory control easy
When it comes to inventory, visibility is key. ERP systems provide real-time inventory updates, enabling more controlled purchasing. With efficient inventory planning, organisations can gain more control over spend, only stocking what they need, without accidentally creating a surplus.
4. Get the right data with the right reports
Having real-time data is imperative for controlling cash flow. ERP provides the reports organisations need to obtain data on specific transactions and monetary patterns, and understand overall cash flow fluctuations. This information lets businesses take the right action for faster results.
5. Automate workflows
An ERP system does more than integrate data or increase visibility; it can also help automate an organisation’s workflow, reducing manual tasks and saving businesses and employees valuable time. This leads to more cost savings and happier employees.
Fabian Calle, General Manager of SMB and Nationals, SAP Concur ANZ, commented: “By using an enterprise resource planning solution, organisations can streamline processes, increase visibility, and create a more dependable cash flow. Whether it’s invoicing or inventory, ERP systems can help consolidate data and create faster cash flow to support the expenses businesses need to pay.”
Timeline: India takes unicorn leap with six in five days
We chart an historic week in India’s tech industry, where in just five days, between 5-9 April 2021, the country achieved six new unicorns, bringing India’s total to 10 in 2021 to date, an immense unicorn leap from just seven in 2020 and six in 2019.
April 5: Meesho
India’s first social commerce unicorn, Meesho raised US$300m from SoftBank, Facebook and Shunwei Capital, giving the Bangalore-based startup a US$2.1bn valuation, a threefold jump from its previous funding round in 2019. Founded in 2015 by two IIT-Delhi graduates, Meesho connects producers and resellers, helping small businesses sell through social media. It has 45m customers and has enabled 13m entrepreneurs to start their online businesses with no investment.
April 6: CRED
Founded just over two years ago, Bangalore-based credit card repayment app CRED raised US$215m from Falcon Edge Capital and Coatue, nearly trebling its valuation to US$2.2bn from its January US$80m round. Allowing customers to pay off their credit card debt while earning CRED coins which they cash in for rewards, CRED has grown rapidly during COVID-19, doubling its customer base to nearly 6 million in a year.
April 7: API Holdings / Groww
The first epharmacy startup to gain unicorn status, PharmEasy (API Holdings), which has digitised 60,000 brick and mortar pharmacies and 400 doctors across India, raised US$350m in a round led by Prosus Ventures. Founded by four former Flipkart employees as a way of making investing simple, investment platform Groww became India’s second-youngest fintech unicorn, raising US$83m in Series D funding led by Tiger Global, quadrupling its previous round in September.
April 8: ShareChat
New Delhi-grown social media startup ShareChat, founded in 2016 by Mohalla Tech raised US$502m from Lightspeed Ventures, Tiger Global, Twitter and Snap taking its raised total over six rounds to US$766m and pushing its valuation to US$2.1bn. The funding will be used to grow its user base and short video platform Moj, which launched in 2020 following TikTok’s ban in India. The regional language startup claims 280m users.
April 9: Gupshup
AI-led conversational message startup joined the unicorn club after raising US$100m from Tiger Global giving it a ten-fold valuation of US$1.4bn. The smart messaging platform, which has seen accelerated growth during the pandemic, was founded in Bangalore in 2005 by serial entrepreneur Beerud Sheth, whose online freelancing platform Elance is now listed. Gupshup’s API enables 100,000+ businesses to build messaging and conversation experiences across 30+ communication channels.