4 Critical Items to Consider Regarding Cash Control and Planning a Successful ERP Implementation - ERP Cloud Software
 
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Nolan Business Solutions

4 Critical Items to Consider Regarding Cash Control and Planning a Successful ERP Implementation


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Cash Control is pivotal to any accounting organization's success. This is especially true for high growth companies that are using excess cash to hire new staff, expand facilities and buy inventory. When implementing a new ERP system it is important to identify the cash control issues and concerns within your business and plan your implementation to incorporate solutions right from the beginning.

Cash management starts at the fundamental level, how much do you really have? Do you really know?

When you think about cash management, you may need to break it down even further:

  • Are you correctly getting all the money that you are expecting from credit card gateways, PayPal, and any other processors?
  • Do you have transactions in your cash GL account that should be voided, are erroneous or maybe fraudulent?
  • Are you able to reconcile your cash every day and tie out to the bank?
  • Do you have the right security in place to protect your cash from check theft and fraud?

 

Are you correctly getting all the money that you are expecting from credit card gateways, PayPal, and any other processors?

When planning your ERP implementation, it is critical to identify a common field that is both in the live credit card transactions hitting the GL and the detailed settlement report. You can then easily match off an amount and a common reference. When talking about credit card gateways, we often have timing issues between what was processed daily and what was settled. Usually what was processed daily is what is showing in your GL. You should then get a detailed settlement report and reconcile to what was posted as expected. This allows you to identify issues with what was expected and what was actually received. When doing a new ERP implementation it is important to plan to do this reconcile and make sure that you are putting a common reference field in the right place.

Do you have transactions in your cash GL account that should be voided, are erroneous or maybe fraudulent?

Daily reconciles will help to identify transactions that are sitting in the GL account without a match from the bank. Alternately it will highlight transactions that hit the bank account that don't exist in the GL. When setting up a new ERP implementation, plan to have daily reconciles with good drill backs to the GL and regular imports of the bank statement. Some banks insist that you report fraud within 24 hours or you can't make a claim.

Are you able to reconcile your cash every day and tie out to the bank?

If you will be using an integration tool to bring in POS transactions or Web store transactions, plan to have, at a minimum, a daily sync. If cash transactions are flowing into your GL too slowly then you can't reconcile or manage your cash process. Also make sure that you have daily access to your bank statement and a way to easily import it in to match off against.

Do you have the right security in place to protect your cash from check theft and fraud?

Identify potentially weak links in your cash control during your ERP implementation planning process. Buy the technology necessary to shore up any of the potential holes that you might have. Put roles and security in place on your accounting system to manage who posts what to your cash account. Manage who has access to your bank reconciliations. Plan your roles and access ahead of time as part of your ERP planning process.

Knowing exactly where your cash is is important for every company. Daily reconciliation will keep you in the know, a tool such as Advanced Bank Reconciliation (for NetSuite or Microsoft Dynamics GP) gets you there.

By Kim Haythornthwaite, General Manager of Nolan Business Solutions US, an International Microsoft Dynamics GP ISV and NetSuite Provider

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