An accounting system is a system used to keep track of companies’ finances, budget, and accounts.
What is a financial system?
A financial system is used to create an overview of your company’s finances. In many ways, the financial system is the backbone of the company, as it continuously keeps track of the company’s revenues and expenses and forms the basis for important strategic decisions.
Is an ERP system and a financial system the same?
Although one often uses both terms to describe the same system, there is a slight difference. A financial system is (usually) part of a larger ERP system and covers the bookkeeping’s work, e.g., finance, sales, and purchasing.
The ERP system typically also includes the following:
What can a financial system do?
The financial system in Business Central helps with accounting and reporting of financial results.
The financial system can among other help with the following:
The financial system in Business Central can run on-premise, in the cloud (cloud-based), or as a hybrid.
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A financial system is (usually) part of a larger ERP system and covers the bookkeeping’s work, e.g., finance, sales, and purchasing.
Financial systems on-premise
If you choose to run your financial system on-premise, it means that the system is located on a server in your local environment, which you can control. As you also must maintain the financial system yourself, you can decide when you want to run updates. The disadvantage is that you must set aside time to run the updates and that you are not automatically on the latest version with the latest features.
Financial systems in the cloud
When running the solution in the cloud, there are no start-up costs such as server installation and purchase of licenses.
Solutions that are run in the cloud are automatically updated. If you have special adjustments in Business Central, you must be aware that your adjustments in the financial system must be tested and possibly adjusted after an update. MicroPartner ensures, to the most possible extend, that we use the supported development methods.
Solutions in the cloud are the most future-proof solutions and will often be cheaper solutions, as there are no internal server costs associated with the cloud.
You can, both by using financial systems on-premise and in the cloud, establish sandboxes where you can test new functionality and / or run training in the system. Whether the finance system should run on-premise, in the cloud, or as a hybrid is very individual and depends entirely on your needs and preferences. MicroPartner always advises on the pros and cons of the various options.