How ERP Implementation Can Help Israeli and US Businesses Improve Financial Compliance

Businesses operating in Israel, the US, and abroad face increasing complexities with financial data management and often need a robust system like an ERP to stay compliant. Especially for companies with cross border activity and international subsidiaries, the implementation of an ERP system can make a significant difference for efficiency and preventing unwanted penalties. 

With rapidly changing regulations on reporting standards, and shifting government enforcement, it’s critical to have an automated solution. The implementation of an ERP system can solve the differences between Israeli and US accounting standards related to reporting frequency, tax requirements, and issues around disclosure.  Multinationals need to report on their financials in multiple jurisdictions, which emphasizes the need for a coordinated and accurate technology solution to stay compliant.

What is an ERP and How It Supports Financial Compliance

ERP stands for “Enterprise Resource Planning.” It refers to a software system that companies use to integrate and manage their business processes. Implementing an ERP for financial compliance allows for a standardization of the data, automation for common workflows, integration of multiple currencies, and access to information in real time. There are compliance automation tools built into the system, in accordance with government legislation and standards.

Some of the key ERP modules that are crucial to have for financial needs include Accounting modules such as a General Ledger (GL), Accounts Payable (AP), Accounts Receivable (AR), Fixed Asset management, Reporting and Analysis, Budgeting and Forecasting, Tax Management and Compliance, and Multi-Currency and Multi-Entity accounting.

SZ is available to accompany in the process of identifying, selecting, and implementing the ERP system that best meets the needs of our clients and their businesses.

Regulatory and Compliance Needs in Israel vs USA

Some of the common regulatory frameworks vary between the USA and Israel, calling for different compliance needs, and posing challenges for SMEs and Enterprises. It’s critical to stay current with legislation, coordinate local tax reporting with foreign entities, and have global alignment.

As part of our services, SZ can accompany the ERP provider in ensuring that the technological solution reflects the latest Israeli accounting standards and legislation. We advise both technology companies, and the businesses implementing their software, to ensure all regulatory requirements are met and built into the system automations.

Ways an ERP System Enhances Your Financial Compliance

• Centralized financial data storage

• Automated tax calculations and localized compliance support

• Real-time audit trails and reporting

• Integration with banking and card payment systems

• Access controls and user permissions for data protection

• Customizable alerts and compliance workflows

• Scalability for multi-entity / multi-currency support

Choosing the Right ERP System for Compliance

At SZ, we value being your partner in determining the right ERP solution for your business. There are a range of options, with varying price points and features, and new solutions are constantly joining the market.

We can also assist in interpreting the latest Israeli laws that must be reflected in your ERP solution.  Each software provider has pros and cons as it relates to compliance. And so it’s critical to navigate which features to look for - such as local tax support, integration options, and compliance certifications.

While in the transition phase to an ERP, we can make sure there are no gaps in compliance. We work alongside specialized ERP IT consultants that integrate the necessary laws, as well as training your finance teams on usage. We monitor and review post-implementation performance to ensure a smooth adoption of the new technology.

An ERP system is an excellent way to simplify and strengthen your company’s financial compliance.  SZ encourages our clients to adopt or upgrade their ERP to streamline operations and avoid unwanted penalties. 

Looking to implement ERP for compliance in the US or Israel? Speak to our financial tech experts today.