It is not only limited to Financial entry in form of Journal entry. The Journal entry is the final step. Records should be available right from conception stage itself and each stage should be interconnected with each other. The stronger the chain and the faster the data recovery the better the control will be.
In this digital age almost everything possible which is in manual form has to be digital and everything digital has to be connected with each other. In case the chain is not present or is not strong enough we will require huge manpower to check whether the data is flowing from one stage to another correctly. Errors can be inadvertent or intentional. In case of huge amount of transactions checking it manually is also not humanly possible. Hence the best solution is to connect every thing digitally. Making and robust digital platform is therefore must. However the cost benefit analysis is to be done and systems needs to be incorporated on the basis of complexity of transaction .
When you make a sale and collect money there are so many things which can be interconnected. Customer credit score, past payment records, credit limit, discount, pricing, contract, invoice, money receipt, reconciliation and disputed items. If everything is connected then breach of control in form of higher discount, more credit, over billing, late or less payment will be reduced to nil.
In case of vendor payments, approved budget, tender price, contract conditions, security deposit, late delivery, work completion, handing over, invoice submission, asset movement can all be interconnected to avoid breach of controls and avoid less or over payment.
Vendor and customer satisfaction will also increase.
It can be done with blockchain but right now there is not enough incentives to do this at the mass scale. But this technology exists and is being deployed selectively in many use cases. Blockchain could be the the cornerstone for a Financially inclusive society where people at the grassroots level can be serviced with Corruption. It can create the most efficient system with full traceability.
I think this will be the future of ERP and cloud computing combined with internet of things and big data analytics
Data will be the king due to these technologies
Data Analytics can be helpful in many ways in demand forecasting, marketing optimization, optimal pricing, supply chain and establishing strategic network. Also in operations for production scheduling, site design, asset management and asset failure prediction. In distribution it can be helpful with transport routing and in procurement it can help in minimizing inventory, product t availability and quality issues.
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