Question

1. Describe benefits of employing ERP for a company.

2. What two sources of capital make up owners' equity?

    

Answer 1

Every company or organization has unique processes , services and products which altogether make it different from others. Enterprise Resource Planning or ERP tool has now become and essential for big companies, but it is also effective for small SMEs and startups. It is worth mentioning that ERP systems play a significant role, when it comes to organize and process financial data. It also improves the overall business development activity in the long and short term. In addition to these advantages, by utilizing ERP Software for your organization, you can increase the efficiency of your processes, decrease costs, streamline processes and as well as improve productivity.

Let us have look on the benefits of ERP system for any company:-

Efficiency:-An ERP or Enterprise Resource Planning software greatly reduces the need to manually enter information and also eliminates several repetitive processes. An ERP software can also streamline business processes by making them efficient and easier for organizations to collect data and information, irrespective of the various departments.

Secure Data:- One of the notable benefits of ERP Software is data security. Data security is not a concern when you rely on an ERP solution for your organization. An ERP software can improve the security consistency and accuracy of data, all through built-in firewalls and resources.

Improved Reporting:-ERP software helps in improving reporting further making it customized and easier. This software gives you the ability to compare functions across departments and analyze them without the hassle of several emails and spreadsheets. With improved and enhanced reporting capabilities, your organization can easily respond to complicated data requests.

Flexibility:- Modern Enterprise Resource Planning or ERP software systems are flexible, configurable and robust. They can cater to the unique needs of your business organization. ERP software can adapt to the ever changing needs of a growing business and allocates the resources in a sufficient manner.

Productivity:- ERP helps in controlling your organization’s costs efficiently, saves your time and even increases the production levels. It further implies that you will be able to manage your whole business organization effectively. ERP Software implementation also improves the productivity of a company’s managers and employee.

Customer Service:-Your Clients can also avail several benefits from the utilization of an ERP software. Since client information is streamlined and centralized, your sales team will be able to focus on maintaining and building strong customer relationships, globally as well as domestically. You can easily access ERP’s contact center software and marketing automation and ensures that your customers and clients are being interacted properly.

Following are the two sources of Capital makeup owners equity:-

1st:- Contributed Capital:One of the two main sources of stockholders’ equity is contributed capital. Contributed Capital is the money brought into the business by selling stock in the company. These funds are often the initial source of stockholders’ equity. When more stocks are sold, the firm’s stockholders’ equity increases.

2nd:- Retained Earnings:Retained Earnings are the other main source of stockholders’ equity. Retained earnings are the accumulated amount of all net income since the organization of the corporation. Retained earnings are a reflection of how successful a company has operated over time.

thanks ..hope your query has resolved