For the small to medium size business, financial/production software, or ERP systems should not be made difficult. Some ERP systems (Enterprise Resource Planning) create complexity and duplication of effort. Really, it should not be that difficult. Who said an ERP system had to be complicated? People seem to think that an ERP system is unaffordable and hard to set up and implement. This shouldn't be the case.
Eight Warning Signs
- You can't get your data out. You know it's in there but you have to pay some programmer to build you a report to receive the data in some type of format that you can actually use.
- Upgrades are costly, time consuming and disruptive. If you haven't applied your software upgrade because you are afraid it will wipe out all of the customizations you paid for, then you are missing out on functionality and technology improvements that could help your business run more efficiently.
- Disaster recovery plan involves tape back ups. Back ups should be easy, not a headache and worrisome. Yet, we always hear the stories about how the back up never took place, we couldn't restore our data from the previous back up, and now we have lost over a weeks worth of data transactions. Ouch! With virtualization, there's no need for tape back ups any longer.
- Hardware costs increase every year. Can you say SaaS, Cloud, Virtualization ....
- High renewal fees. What's the ROI (return on investment)? Has it been worth it in the past? How can we lower these? Do we need that many users or applications?
- Can't access data easily when traveling. The system is too clunky or too costly to access remotely.
- Vendors or Customers cannot interact with the system. The is very important to grow your business and become more efficient.
- Costly training for new employees. Is the ERP system difficult to learn? It shouldn't be.
DataCraft implements user friendly ERP systems software. Give us a call. We can help.
P.S. Stay tune for three other blog series regarding ERP systems.
What ERP System is right for your business?
If you're frustrated with the way inventory is (or perhaps isn't) being managed, there's a very good chance that you are not alone.
Inventory management is something that we discuss quite a bit on the DataCraft Blog (check out other inventory posts here) because we know it's a common issue among organizations, regardless of their industry.
We'd like to take some time to offer a few white papers that have inventory solutions for inventory accuracy.
Demand Planner
Businesses, regardless of their size or specialization, need to estimate and monitor demand for their goods and services in order to efficiently manage their operations. Reducing uncertainty of demand can significantly help businesses keep inventory and operating costs low while improving customer satisfaction. Download the Demand Planner white paper
Guide to Inventory Basics
Having problems with inventory accuracy? Implementing technologies such as bar coding systems, RFID, and pick-to-light are often assumed to be the solutions to inaccurate inventories. Whether you are planning on implementing additional systems or not you should consider taking care of the basics first.
Download the Inventory Basics white paper
Inventory Turnover Ratio
Inventory management is all about finding the right balance. Every firm has to maintain a certain level of inventory of finished goods so as to be able to meet the requirements of the business.
Download the Inventory Turnover Ratio white paper
Don't let inventory inaccuracy drive you crazy, learn how effective inventory management can increase productivity.
We are well into March and for some that means saying hello to warmer weather and sunshine and goodbye to snow and ice. For me, it's usually dominated by one thought and one thought 
only: sports.
Not only are we inching closer to the start of the baseball season, but March Madness is in full effect.
So what does a basketball tournament have to do with accounting basics and financial statement preparation and analysis?
In honor of the Big Dance, I'd like to offer you the Final Four of Financial Statements Preparation.
There are four financial statements needed to give a owners and investors relevant information about the company.
1) Income Statement
An income statement reports revenue and expenses over a period of time. There are two parts of the income statement: operating and non-operating.
Investors and analysts pay special attention to the portion of the income statement that deals with operating items. This section deals with operating items gives information about revenues and expenses that are a direct result of the regular business operations. Let's use basketball as an example. If a business manufactures basketballs, then the operating items section would talk about the revenues and expenses involved with the production of the balls.
The non-operating items section tells about revenue and expense information about activities that are not directly related to a company's regular operations. For example, if the basketball manufacturer sold some old equipment, then this information would be in the non-operating items section.
2) Owner's Equity Statement
The Owner's Equity Statement reports the chances in equity over a period of time. Retained earnings on the balance sheet are usually influenced by income and withdrawals. In order to get the information you need for the owners equity statement, which in turn provides information for the balance sheet.
3) Balance Sheet
The balance sheet is a snap shot of a company's financial condition and reports assets, liabilities, and equities at a given point in time. Each portion of the balance sheet let investors know what is owned and owed by the company. Assets should must equal total liabilities and owner's equity.
4) Statement of Cash Flows
The statement of cash flows shows the company's amount of cash inflows and outflows for a specific period of time. That cash flow statement helps to gage the financial performance of a company by asking where the cash came from, what it was used for and the change in the cash balance.
Earlier this week Monica Glenny spoke at the Belvidere Chamber of Commerce Manufacturer's Appreciation Breakfast.
The topic: inventory management. 
Based on the discussion and amount of inquiries after the event, I think it's fair to say that inventory is something that is on everyone's mind.
During Business Clarity sessions, effective inventory management is often brought up by clients, and they're issues aren't isolated to just them.
Inventory is an issue that plagues businesses of all sizes and the same questions typically come up:
- Do we have accurate accounts of all products, materials, or parts?
- What is the physical location of each inventory item?
- What is the cost of producing each unit of product or service?
- Are we ordering appropriate quantities of inventory for future production and sales?
- Do we have any inventory that has been sitting on the shelves for years?
- Are we currently holding too much or too little inventory?
These are all questions that can be answered with the correct work flow process and by understanding inventory ratios
Because it is such a common pain point and has been a hot topic around here lately, we have pulled together some white papers that cover different aspects of inventory management.
We've all been hit really hard by this winter weather, so what better way to relax than with a good book? We decided to take a break from our usual accounting basics and ERP software talk to compile a book list for you. Check out some of our favorites that made it to our 2010 Winter list
Make Today Count - John C. Maxwell (Center Street) This is the second time Maxwell has made it onto our reading list. (Check out the other time here). Maxwell's book discusses the importance of making the right decision in twelve critical areas of your life, or what he refers to as the "Daily Dozen." Maxwell suggests the path to being successful starts small with making the right choices on a daily basis.
The Narrative of the Life of Frederick Douglass -Frederick Douglass(Fall River Press) Considered a milestone in American history, The Narrative of the Life of Frederick Douglas chronicles the life of the famous abolitionist. Originally published only seven years after his escape from slavery, it became an instant success.
Common Sense -Thomas Paine (Penguin Classics) This is the pamphlet that started it all. First published in 1776, Common Sense challenged the authority of the British government and the royal monarchy. What made his writing so popular? He didn't try to wow the masses with philosophy, instead he wrote for his audience, not above them, impassioning them to want to make a change. It's still as inspiring today as it was nearly 250 years ago.
Embrace the Struggle- Zig Ziglar and Julie Ziglar Norman (Howard Books) Written after a traumatic fall that lead to a head injury Embrace the Struggle discusses the importance of optimism to get us through the hard times we all eventually face. Through his own stories and the stories of friends, Ziglar highlights "living life on life's terms."
Exploiting Chaos: 150 Ways to Spark Innovation During Times of Change- Jeremy Gutsche (Gotham Books) Hailed by many as one the best business books of 2009, Exploit Chaos takes readers on a visual journey to help ignite ideas for a successful business. Gutsche's writing style and graphics fit in perfectly with today's busy reader. Looking for inspiration to put these challenging times to good use? Check out this book.
The Findability Formula: The Easy, Non-Technical Approach to Serach Engine Marketing- Heather Lutze (John Wiley & Sons) Ever wonder how customers are thinking when they search for a product or service? Lutze's book helps marketers at all levels of experience re-energize their website to make them more profitable. Her step-by-step guide to Pay-Per-Click campaigns helps to make your company visible throughout the customers' buying cycle.
In talking with growing businesses, we're finding a common issue of data reentry. If your employees enter and re-enter sales information in multiple software programs, it can slow the sales process and allows for data entry errors. But how can you streamline the work flow management?
Answer:
Procedures within the sales process may be fragmented in various ways, for example:
- Sales inquiries are received by e-mail, telephone and fax
- Inquiries are maintained on a spreadsheet
- Price quotes are calculated on another spreadsheet
- Follow-ups are maintained on yet another spreadsheet
Most accounting software can maintain and integrate several procedures within a single program. The software applications can generate lead follow-up letters, check inventory levels and automatically reorder, forecast potential product demand and allow customers to enter orders through your Web site.
Streamline your software system. Your business will save money, and your sales force will become more productive.
Find the right small business Enterprise Resource Planning ERP software system and accounting software for your business. Download the Software Selection Guide.
Now that 2010 is here, people are scrambling to figure out how they're going to keep their New Year's Resolutions. They picked out their personal resolutions - lose weight, quit smoking, start a hobby, save more, spend less... but what about New Year's resolutions for your business? How are you planning on taking what you learned in 2009 and putting it into practice for 2010 and beyond?
Coming up with goals for the New Year is great, it gives your business something to work towards, but don't let it stop there. Planning out how you're going to achieve those resolutions is just as important as the resolutions themselves. They don't always have to be grandiose tactics, sometimes it's the simple steps that keep you on track.
Let's say your resolution is to pay more attention to the financial health of your business- take what we like to call "5 at 5"
Every day at 5:00 (or whenever your day at the office is winding down) take five minutes to review your key performance indicators. Here are some possibilities:
- Day's cash receipts
- Days' cash disbursement
- Current ratio
- Accounts Receivable (A/R) aging
Work your tactics into your daily routine, and your resolutions won't be as lofty as they seem.
What are some of your business resolutions this year? Better yet, how do you plan on keeping them?
Last month, Microsoft discontinued their Office Accounting product and a lot of small businesses where left without accounting software to run their company.
A recent Business Week article by Gene Marks highlights Microsoft Office Accounting and the story of a business owner of who was one of the many that purchased the software and ultimately lost out. Marks highlights the importance of businesses knowing about the technology that's available to them before they make the investment. 
Lately we've been getting a lot of questions about software add-ons and accounting application service providers (also known as ASP's), what they are and how they can help with their business accounting.
An accounting ASP is an Internet service that provides business accounting software on line. ASP accounting services range from specific functions, to fully integrated packages.
There are three types of accounting ASP's:
- Completely Web-based packages
- Desktop packages redesigned for Internet use.
- Partial accounting applications - on line bill pay, for example.
Monthly fees typically are a flat Internet access rate plus a fee per accounting module - accounts receivable, accounts payable, payroll, etc. Charges typically run anywhere from $10 to $500 per month.
If you are considering an ASP for your business accounting, make sure you weigh these factors.
There are some distinct advantages of ASP's including:
- Allows remote access to financial information.
- Cost savings over in-house software.
- Useful for businesses with multiple locations.
With that said, there are also significant disadvantages:
- No personal interface with accountant.
- Security issues - financial information must be protected.
- Data conversions may require manual input.
Whenever you're looking at purchasing new accounting software, make sure you consider your business requirements first whether that is in-house or on line.
Know your software options- Download the Software Selection Guide
What can one blog do to change the world? Alone, not much, but pair it with thousands of blogs from all over the world and big things can happen.
Last year over 12,000 bloggers and 14 million readers came together
Blog Action Day to change the conversation about poverty. Join us on October 15 as we take part in this year's Blog Action Day focusing on climate change. Connect with millions of others who will be working together to make a difference.
One day. One Issue. Thousands of voices.
By now, you've probably finished reading everything in our winter book list, and with summer in full swing, we thought we would give you some more titles worth checking out. So grab an iced cold beverage of your choice and one of these books to wrap up a warm summer day...
The 21 Irrefutable Laws of Leadership by John C. Maxwell (Thomas Nelson)
With over 30 years of leadership experience, Maxwell has learned a thing or two about what it takes to be a great leader. He's compiled the ups, downs, ins, and outs to create this revealing study in the culture of leadership.
The Four Obsessions of an Extraordinary Executive by Patrick Lencioni (Wiley, John & Sons, Incorporated)
This is the third book written by Lencioni to make it to our book list (the other two are listed here); needless to say we really like this guy's stuff. Lencioni's book follows two fictional technical consultants and their competing companies to show how less politics, lower turnover, more productivity, and higher morale can improve an organization's health.
Beneath the Armor by Ole Carlson (Influencemany)
If you've been watching Monica's videos , chances are you've heard of the book before. Considered a must-read for CEOs, Beneath the Armor identifies seven strategies defined by your most successful peers that will provide you a road map to position you at eye level with your worldwide, giant competitors.
The Mona Lisa Stratagem: The Art of Women, Age, and Power by Harriet Rubin (Grand Central Publishing)
Who said life ends at 40? Rubin finds inspiration in the Mona Lisa's timeless beauty and mystery to reveal an approach for finding fulfillment in midlife and after. Rubin uses 10 iconic women in history to help women find the true meaning of leadership and power.
You're Not the Person I Hired! A CEO's Survival Guide to Hiring Top Talent By Janet Boydell, Barry Deutsch, and Brad Remillard (Authorhouse)
Your company is only as strong as its weakest link. You're Not the Person I Hired! uncovers the most common causes for executive and managerial failure. The book helps you learn what to look for when hiring top talent and how to avoid hiring mistakes.
The No Asshole Rule: Building a Civilized Workplace by Surviving One That Isn't by Robert I. Sutton (Grand Central Publishing)
Jerks, nincompoops, idiots, nitwits, assholes; whatever you call them, we've all had to put up with them at one time or another another and no matter what your term is to describe them; they're never fun to deal with. Sutton's straight-to-the-point book identifies them as a leading cause in the drop of business morale and calls them poison to the work environment. More importantly, Sutton tells you how to deal with them to create a more positive and productive workforce. He even includes a test to determine if you are among the assholes and gives advice on how to change your ways.