How to Convince Your Boss You Need New Software (5 Tips)

July 30, 2013

How to Convince Your Boss You Need New SoftwareYou have a problem: your software just isn’t cutting it anymore. You know the solution: new software. However, it’s not that simple, because you now need to figure out how to convince your boss that the business needs new software. Here are a few suggestions on how to make that process much easier.

1. Quantify Your Pain

Whether your boss is the business owner, accounting manager, or an executive, the language of numbers is part of the lexicon. This means the boss spends time quantifying problems, cost savings and investment returns for any project — especially software.

For example, it is one thing to say that a new system will “save you a lot of time”. Instead, focus on how much time is wasted on current processes. Perhaps it takes you 3 hours each week to compile important reports. A software system that allows for automated creation and delivery of reports can then save over 150 hours of work a year, for you alone.

2. Qualify the Investment

An appropriate distribution ERP system, for example, may cost tens of thousands of dollars. However, the cost of not getting an appropriate software system can be much greater. What else costs tens of thousands of dollars? Labor.

Appropriate software can frequently save a business at least one, if not several, salaries in many cases. As a result, the ROI can be very rosy indeed. Consider a company with 2 order entry people who are falling behind due to manual lookups and processes, so the company is considering hiring 2 additional employees. Let’s say they cost $25,000 per year each. That’s $50,000 in annual recurring costs that could be saved by a software system which could make the existing employees far more productive instead. So for example if the new software costs $60,000, then in just 14 months it’s paid for itself, and thereafter the bottom line keeps improving.

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ERP Implementation Guide: Cost Considerations

July 19, 2013

Guide to ERP ImplementationsYou’ve begun Evaluating ERP Software Vendors, and have a couple different proposals in front of you, with pen in hand to sign one along the dotted line.  Each proposal clearly outlines your business processes and requirements, the components you will be receiving, a final quote and payment options and the implementation.  But wait – what exactly is involved with implementing inventory and accounting ERP software? What does it mean by configuration, and installation and why is data migration so expensive? Unfortunately many people do not stop to ask themselves these questions, often overlooking the implementation and not fully understanding what is involved and the differences from one vendor to the next.  To help answer these questions and understand what is typically involved in inventory and accounting ERP software implementations, continue reading and for more detailed information download our ERP Implementation Guide.

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ERP Software and QuickBooks Integration? Not so much…

July 15, 2013

Replace QuickBooks - QuickBooks ReplacementA massive percentage of small businesses and startups use QuickBooks. It’s very clearly and most impressively virtually cornered the market on entry-level small businesses. And most QuickBooks users tend to love working with the software.

So when a company outgrows it for operational reasons like inventory management or line of business requirements, there’s often an inclination to shop for a separate application, perhaps an inventory management system, to link into QuickBooks. And there are, of course, several 3rd party add-ons to choose from. But if none of those will work for you, or if you’ve fundamentally outgrown the whole platform,  you’ll be switching to a full-blown ERP Software system to replace QuickBooks. And those are the key words for this article: “replace QuickBooks“.

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Inventory Accounting Software: It’s In The Way That You Use It

July 4, 2013

Way-you-use-it

It’s an Eric Clapton song, from the movie The Color of Money. But it’s also true of the value that you’ll get from your Inventory Accounting Software. It’s in the way that you use it.

Take the example of two companies in similar industries, both using the exact same software. Company A considers the software to be an administrative tool, used purely to record transactions, generate documents for shipping, etc. and for their basic accounting needs. In other words, it’s simply a way to automate previously manual processes. It works for them, and very well, in that context, but that’s all they use it for.

Company B considers the software and its implementation and use to be part of a set of strategic tools to help grow the company and improve the bottom line. So Company B uses it for all the things that Company A does, with similar benefits. But Company B then takes it further, recognizing that in processing all these transactions and recording all the information, they have created a goldmine of potentially valuable information about their business. So they do what all smart owners of a goldmine would do: they mine it for valuable nuggets. They invest the time, effort, thought and money to generate useful real-time reports, alerts, triggers to help proactively detect and prevent problems, and recommend improvements. They also take advantage of the technology offered by both their Inventory Accounting Software system, and other tools they use (such as Excel) to integrate data and have it flow back and forth automatically, without manual entry.

One specific example (yes, Company A and Company B are both real businesses, and this is a real example): Company B managers receive an automated report at the end of each day summarizing any key exceptions they should be aware of, in terms of anomalous sales margins, late arriving purchases, and overdue outbound deliveries. If there are no problems for that day, the report is empty, so they only look at details that need attention. Company A, on the other hand, did not want to spend the time, effort and money to set this up. So instead they look at detailed reports every day on all sales, and all purchases, and try to manually spot the problems. Guess what? They frequently don’t get around to looking through all those pages and pages for several days, by which time it’s too late to deal with the problem. And during the hours they spend each week wading through reports, their competitors (like Company B) are out there talking to customers and generating extra sales instead.

Two companies, the same software, different results. It’s in the way that you use it.


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