Accounting has become a key component of corporate performance indicators. The regulatory compliances, investors demands and competition advantages in the global market require speedy and transparent reporting which can be trustworthy. In todays scenario where business domains are fast, voluminous and complex, it is almost impractical to handle such critical work with standalone systems. With Enterprise Resource Planning (ERP) closing becomes fast, segment reporting becomes practical, auditing process becomes foolproof, general ledgers are fully integrated, and tax and valuations are online and perfect. The article discusses the various features and uses of ERP.

Accounting impacts the strategic direction of the firm in today’s world, where the key corporate performance evaluations are based on accounting or on information related to accounting. Technology has made many changes in
traditional accounting by making it transparent, improving its analytical capabilities, and proactively managing global business performance, profit, and growth by improving and innovating financial processes. New and more complex tax laws and auditing standards, changing technologies, and a fast recovering economy have all shaped up the accounting environment today. To meet global investors’ demand for timely presentation of financial statements in volumes, technical standardized systems like Enterprise Resource Planning (ERP) assist financial professionals for compliance of
accounting standards, statutory requirements, etc.

Many ERP systems have fully integrated accounting system and make online integration of entries, foreign currency transactions, inventory valuations, segment accounting, tax accounting, closings, etc., possible. SAP R/3 has almost all such features. ERP gives a comprehensive platform for all accounting and financial reporting needs by utilizing a healthy datawarehouse to structured planning, faster financial consolidations, and perform advanced analytics, online reporting and accurate financial results according to specific accounting standards.

The Accounting World Magazine, Accounting, Enterprise Resource Planning, ERP, Global Markets, Accounting Standards, Foreign Currency Transactions, Tax Accounting, Financial Reporting, Financial Software Environment, Generally Accepted Accounting Principles, GAAP, International Financial Reporting Standards, IFRS, Sarbanes-Oxley Act, Information Systems, ERP Consolidation Techniques.