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.
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
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.
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.
