An ERP solution provides easy way to follow government regulations and prevents lots of inconveniences caused by compliance processes. The cost of managing government regulations is expensive and burdensome. Some of the basic monthly duties such as paying the phone bills, electric bills, and property taxes can be done easily without delays using the software.
Manual procedures can not only cause inaccuracy but it can delay the process which can result in excess loss. In a survey it has been found that the cost of following federal regulation can be more than $10,000 per user whereas ERP software not only eases the process by automating things but it even prevents expense on penalties caused by delays.
Benefits of Using ERP for Standard or Regulation Governing
Replace manual procedures: ERP can play the central role for managing regulations as it reduces expenses on reprinting the requirements on time and it is more efficient than manual procedures. It can automatically report to government offices through emails and the updated data can be viewed by the organization immediately.
The manual methodologies in manufacturing can be replaced by the automated systems and certain accounting regulations can be easily followed using the tools of ERP. There are certain industries such as medical companies which require the modified regulatory acts each day and it can be done easily using the medical device compliance measures.
Provides audit trails: ERP can provide audit trails and be compliant with the latest requirements. The security features provided by ERP reduces paper work, increases accuracy, increases productivity and reduces security risks. There are some of the features such as user authentication, stamps, record history, previous payments terms, and change in government data, explanations related to payment, which enables easy and fast availability of data. The data is authenticated every time by the system and it even improves verification of data.
Easy and timely management of regulations: For HR department the software provides provision to store the employee data such as social security number, earnings, deductions, government regulatory deductions and taxes. The systems enable the company and the employee to benefit from government provisions and the simplified methods prevents discrepancies and legal hassles. The employee and the organization can view the reports anytime to ensure the integrity of the data.
Easy to manage multi country systems: Certain laws such as Sarbanes-Oxley can be easily followed by the organizations using automated methodologies and the complex requirements of the government laws can be integrated to the system to reduce the risk of complex regulations. The organizations which have multi country ERP system may not worry about the regulations followed by different units as they can see the integrated data anytime of the company, and each and every data undergoes the regulation check mentioned in the software. The multi currency system, local taxes, standard methodologies is followed through the systems and it prevents errors.
To ensures the software follows the government regulations - regular updating of data is required for which the software maintenance department feeds the data into the system through manual or automated techniques.