For manufacturers there are two key resources for funding and assistance. One is the Trade Adjustment Assistance (TAA) which can be used in the Midwest for Illinois, Iowa, Minnesota and Wisconsin. The other source is IMEC (Illinois Manufacturing Extension Center) funding for training.
For the last month, we have been partnering with IMEC (Illinois Manufacturing Extension Center) and have been able to offer our clients some funding through IMEC for training regarding the work flow processes in their current ERP system software, accounting software and inventory management training. This funding is available first come so if there’s anything you think we can help you with, please contact us at 815-965-9800 and ask for Charmaine or email me at cbliss@datacraftrockford.com
IMEC is a team of specialists who work with Illinois companies to be more productive and globally competitive. IMEC solutions help companies develop profitable business strategies, meet customer quality requirements, contain operating costs, increase capacity and on-time delivery, and solve technical operating problems such as product defects or process bottlenecks. We prepare the client's team to accelerate improvement and achieve results that will stick -- long term.
Since IMEC's inception in 1996, the 1,900 companies who have called on IMEC for assistance have realized an average of $7 dollars in sales and cost saving improvements for every $1 dollar they have invested in our resources.
Trade Adjustment Assistance for Firms (TAAF) is a program for companies that have been affected by import competition and want to improve their competitive position. This unique, focused source of consulting and technical service assistance offers up to $75,000 in cost sharing of projects aimed at enhancing a domestic company’s ability to compete successfully.
If your manufacturing or service business has been impacted by import competition you should contact the Trade Adjustment Assistance program.
Applied Strategies International, LTD. (ASI), the Midwest Trade Adjustment Assistance Center, provides consulting services and technical assistance to manufactures in Illinois, Iowa, Minnesota and Wisconsin.
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If you are planning to switch your accounting and ERP softwares, migrating data from your old software to the new software can present challenges if not done properly.
To avoid any data migration issues, a well-planned data conversion should include:
- Clean cutoff - In order to have a clean starting date in your new software system, you need to have a clean cutoff date in the old one. Don't enter anything in the old system that would be BEFORE the cutoff date. It's best if there is a way to "Close" the financial software as of that date.
- Run parallel- Run both of your software systems together until you're comfortable with the new software. While you're using both systems, pull reports and financial statements to make sure the data matches and you're getting the information you want from the new system.
- Don't rush. Even though it might be really tempting to switch over to the new software system, take your time. Bad data conversions are expensive. Lost data, errors, time delays, inefficiencies, and disruption of normal business operations all are potential hazards.
Migrating from one software to another is a big project that requires proper planning. A well planned and executed conversion will get your business running on its new accounting and ERP software systems without putting your company at risk.
Looking to switch software systems? See how Open Systems Inc makes it easy.
Download Making the Switch:Migration from OSAS to TRAVESE Version 11
*photo credit: Stepan Mazuroy
The cost of an ERP system software depends on many factors -- size of the company, number of ERP users, functionalities introduced to the work flow software, number of software modules implemented, condition of existing IT hardware and the ability level of the company's team. Costs can range from $25,000 to millions.
About 45% of buyers experience unexpected costs that had not been initially taken into account -- Why?
Critical Implementation Meeting: The company's team should meet with the vendor's Project Manager and know from the beginning who's assigned to what tasks for the company and for the vendor; critical timelines to be met and consequences of not meeting those timelines; parallel date; test date; and go live date. When a company does not meet those timelines it equates
to the allocation of additional internal resources (costs); lost time using the new ERP packages (ROI); and most importantly, a decrease in the momentum of implementing the new ERP software system.
Training Costs: Be sure to allow for sufficient training for your team. Ineffective training relates to lost functionality of the software and a poor work flow. Companies do not realize that with poor training they lose -- software is used incorrectly resulting in poor data. I see this often with ERP implementation in QuickBooks Premiere and Enterprise (mini ERP systems) users who state that they know the software but then never knew about Estimates, Sales Orders, Inventory classifications, Assemblies, On Line Banking, etc. What a waste of your software package!
Data Conversion: STOP! This is the biggest cost of any system. Do you really need it? Store the data in a place where people can refer back to it if they need it. Export the most often used data to some Excel spreadsheets and refer to it when you need to.
Integration Costs: How critical is it to "interface" with another system, application or function? And what is the definition of that "interface"? How will the data reach your accounting software, sync with the CRM system database, update the inventory and product information, or is it a simple journal entry in the General Ledger and it's really not interfacing all of the data?
IT Infrastructure Costs: Know the specs for your software, the capabilities your internal hardware, the cost to maintain the system internally and be aware of the fantastic outsourcing opportunities to have everything managed off site. Do the ROI and see for yourself.
Customization: Determine that there's a valid ROI before signing off on a customization. In addition, be sure to have a scope of work and hours allocated to the customization before agreeing to it.
KISS: Remember, keep it simple enough so that several people can learn the system. What if your key expert leaves? Don't make it too complicated.
Licensing: Buyer Beware!! There can be many license fees involved besides those of the ERP System Software -- SQL, Crystal Reports, Access, Third Party modules, etc. Get all of the details up front. The type of licensing -- packaged, concurrent, module-bases, site or location and subscription.
ROI (Return on Investment): What helps to define this?
- Inventory solution that reduces inventory levels.
- Inventory management and accuracy.
- Ship more orders and on time.
- Shrink the aging report for accounts receivable.
- Accurate data for margins, revenue, forecasts and budget.
That was our last blog on this ERP Systems series. We hope you enjoyed it and we would love your feedback!
Don't fall into the pit of making your ERP system software too complicated. Then you'll have to hire a team to use it effectively.
An ERP system software is primarily an integrated suite of modules and features that can encompass financial, production, services, human resources, payroll, time entry and CRM (customer relationship management). The software is dependent upon how your company work flow operates, how you would like to set it up and how it can be incorporated efficiently and effectively into the company's environment.
The modules your company purchases is dependent upon what is most important to the company's processes (this goes back to the beginning of our ERP blog series). 
Again, one word of advise as you continue the ERP research buying process ... Keep It Simple Stupid... the old KISS method still applies here. An ERP system too complicated can make your team's life miserable. Then what happens? Your team only uses 35% of the ERP system software you have, which is the national average.
Typically companies are examining a combination of financial management, manufacturing, project management, supply chain management, product life cycle, supplier relationship or customer relationship management (CRM) software ERP modules. Know what your team desires and understand the resources needed from the company (not just the vendor) in undertaking an implementation of any piece of the modular ERP software. There's a commitment required from the company and the vendor and the agreed upon combination equals success.
Industry Specific ERP software can be necessary. I spoke with a CFO from a large asphalt company the other day. They have two types of software they use -- bidding and order/job implementation. Due to the critical element of what can be missed in a bid for a highway or a bridge, there was an ROI (return on investment) for the bidding software they implemented and used habitually. On the other hand, if some customization is necessary, most softwares can handle that but beware that you own the code and that it is in a programmed language that can be integrated to other applications or services.
Next week .... cost!
Which ERP System is right for your business?
If you've ever wondered how to improve the performance of your accounting software to make it a little faster, a little more efficient, and a little more functional, there are four areas you should consider looking into.
Integrate modules
If your accounting modules are not "communicating", you may be missing out on some built-in efficiencies. For example, by integrating your accounts receivable and accounts payable modules with your bank reconciliation module, you will be able to quickly reconcile your bank statements each month.
Install or activate Crystal Reports
Crystal Reports is a report writer that comes bundled with many accounting packages. This powerful tool can help you write specialized reports using information from a variety of sources.
Customize data-entry screens
Many accounting packages allow data-entry screens to be customized for specific users. This type of tailoring can allow employees to enter data with minimal keystrokes or mouse clicks.
Run file maintenance periodically
File maintenance may be named differently in your accounting software. Other terminology may include "rebuild", "compact and repair", "re-index", or "synchronize". Whatever term your accounting software uses, the process of reorganizing your data files will increase the speed with which you are able to access them.
Are you getting the most out of your software workflow? Schedule a Business Clarity Session
Your monthly business financial statements provide information about previous months' activities, but even if the statements look good, you can still bet more out of them.
Many business owners rely on monthly financial statements plus monthly financial ratios. Ratios can be prepared from information already in your accounting software. Following are tools for measuring particular aspects of your business:
Liquidity:
- Current ratio - current assets over current liabilities.
- Receivables turnover - how quickly customers pay.
- Inventory turnover - how long your inventory sits.
Profitability:
- Profit margin - profit generated by sales.
- Asset turnover - sales generated by assets.
- Return on assets - profit generated by assets.
Solvency:
- Debt to total assets - percent of assets owned by creditors.
- Interest coverage ratio - ability to pay interest.
- Cash debt coverage ratio - ability to pay long-term debt.
Program your accounting system to produce key accounting ratios, review them monthly and get new insight on your business.
Many people use the accounting software in QuickBooks and forget the rest. For the most part, clients know how to use accounts receivable and accounts payable. What is often forgotten or misused in QuickBooks? That would be estimates, sales orders, sales reports and items (products and services you sell).
People misunderstand the importance of using estimates (bids, grants, proposals or quotes) for follow up and profit margin tracking. Sales people or customer service could be entering those estimates directly into QuickBooks. Worried about your employees messing up your software? Security controls can be established so that they can't go anywhere else in the software. Do you know what your profit margin is per job or are you simply making journal entries and "approximating" the profit margins? What was the estimated versus actual revenue and costs? Can you set up your company's selling workflow in the software? You should be able to.
Whether you sell products or services it is vital to set up items in QuickBooks. Why? The more detail you use for item lists the better your reports. Questions can be answered like ... Which item is my best source of income? Which items are my best sellers? Product costs and labor costs should all be set up and tracked in QuickBooks. Pricing? Set up your price levels and use those to your advantage to help control sales profit margins.
The Sales Order tool is excellent for managing partial shipments and sales order fulfillment for inventoried products and their interface to purchase orders, pick lists, and packing slips in QuickBooks.
A full or mini ERP implementation should take full advantage of the financial and business software your company purchased.
For the above metioned QuickBooks functions, it makes a difference which QuickBooks package you have ...
Is QuickBooks right for your company? Compare it to other leading software systems: Download the Software Selection Guide