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“If the cost of automating the accounting for transactions in the ERP system exceeds the benefit of cost savings, is it worth investing?

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Question added by Santhosh Kumar Gopinath , Finance Manager , Arab Financial Services Company B.S.C (c), (Subsidiary of Arab Banking Corporation, Bahrain)
Date Posted: 2014/10/16
Mohammed Ismael
by Mohammed Ismael , Finance Manager , confidintional

iif we want to adopt any new module related to accounting system or internal control should be cost benefit analysis so it is not worth investing because the cost exceed benefit.

 

but sure the adopt for ERP system it will be cost saving except if you speak about very small entity

Sajid Hussain Penukonda
by Sajid Hussain Penukonda , Executive Finance , Excellence Data Research Private Limited (Cognizant Group)

Though the automation cost exceeds the cost savings it is very much worth to invest in automation since the organization is based on going concern.  In the long run will help the business more cost saving with better internal controls features

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