Accounting Software Helps You Go Paperless: Part 2

This is part of Accounting Software Helps You Go Paperless, continued from the prior blog post.

Create, send and track purchase orders electronically.

Do you run out of your most popular products, while the slow movers just keep sitting on the shelves? Are you unsure of how many of an item to order? Perhaps you have a giant folder labeled with your vendor’s name that is overflowing with paper copies of purchase orders and other vendor information. These are just a couple of the major functions that can be solved by electronic purchase order management. A purchase order system within your accounting software can suggest, produce, process and receive purchase orders for items and/or services. Your whole purchasing process is made more efficient, and will save money by having the right products on your shelves at the right time, when customers need it.

Create and send reports within the system and via e-mail.

Most companies run their financial reports every month, print them and distribute them to the appropriate parties. The reports are typically viewed and then stored or disposed of. By distributing reports via e-mail instead of in print, you will save on paper and also reduce the chances of sensitive financial information going around the office. Also, create the reports in Adobe PDF files, and everyone (even those without your accounting software) will be able to easily view the reports. Your data is safe and accurate in a PDF format as it allows the user to make notes on the report but won’t allow them to change the original.

Cut down on printed invoices and statements.

Yes, it’s an old habit that’s hard to break. But think about it, do you really need all those printed copies of invoices and statements? A good accounting software program should allow you to reproduce/reprint any invoice or statement from history, so there’s really no reason to keep a copy. If you want to keep copies so people without authorization to the accounting software can view them, you should print to PDF files (which does not physically print them but instead saves them into a PDF format) and keep them in a safe/organized place on the server. To do this, just name the file and folders the same way you would if it was a file cabinet. If you would normally have a file cabinet full of folders for each customer, then you would create a folder on the server called “Invoices”. And within that folder, you would have a separate folder for each customer. When you print the invoices to PDF files, you would name them with the customer code and invoice number, and save them within the appropriate customer file.

On the other hand, some businesses now keep a three-ring binder that has a copy of every invoice/statement in it, sorted by invoice number. If you are currently doing this and would like to continue doing it with electronic copies, then you would create a folder on the server called “Invoices”, and all invoices would be saved in that folder. When you print the invoices to PDF, use the invoice number as the file name, or the invoice number and customer code.

Don’t forget that there’s always the possibility of having an interim period where you still print a copy and then keep a PDF copy. However, this often leads to employees reverting back to old ways, so it’s typically best to make the change ‘cold turkey’.

Old habits die hard, but going paperless or at least reducing the amount of paper you use can greatly benefit your business and our environment. Let accounting software help you and your business on your path to going paperless!

Accounting Software Helps You Go Paperless: Part 1

No matter what type of business you operate, you have surely heard about businesses trying to reduce the amount of paper they are using. It all seems so easy in theory, but it can be challenging to actually change the processes you and your colleagues have been used to for so many years. According to www.electronicpayments.org, “…every year Americans mail 26 billion bills and statements and 9 billion payments in paper form. The production and transportation of those paper bills, statements, and payments consumes the following resources: 755 million pounds of paper, 9 million trees, and 512 million gallons of gasoline.” Visit their Web site for more interesting facts about going paperless. Here are some of the ways you can use your accounting software to help put your business on the road to eliminating the need for paper.

Send invoices and statements via e-mail.

All of the paper and envelopes that go into sending your customers invoices and statements really add up. Many accounting systems now allow you to set up your customers’ e-mail addresses within the system, and then send all invoices and/or statements to those with e-mail with just a few clicks. If you send out five invoices/statements per day, that’s 1,300 sheets of paper and 1,300 envelopes per year! Just think of the time saved, not having to print, collate, stuff, stamp and send all of that mail. Your customer gets the invoices sooner, and you might just get paid faster, too.

Store customer pricing in the system.

Do you find yourself flipping through disorganized folders of information, seeking the customer’s most current pricing sheets? Not only does this waste paper, but it also leaves the customer waiting while you search. Keep track of pricing in your accounting software and it will always be just a few clicks away. Do keep in mind that accounting software does vary in its capability to store pricing information. Some systems let you store one set of pricing, some store multiple sets and some even allow for unlimited contract pricing. Make sure your system allows you to store pricing in a way that will work for your business!

Enter and store customer orders in the system.

Here again, if you are storing customer quotes and orders in a paper file, things will be much harder to find. You will have a multitude of papers floating around, and it will take longer to access them. Instead, create and save customer quotes and orders in your accounting software system. Quotes and orders can then be searched for by number, customer name, etc. for easy access. The information will be easier to find, and you will consistently provide better service to your customers.

The second part of this blog will be continued in the next blog post.

Best Web Sites for Finding Accounting Software and Payroll Software

Searching for accounting and payroll software for your business is not always a fun or easy experience. There are simply so many products out there; it can be hard to know where to even begin. The nice thing is though, we are in the digital age, and some really smart people have come up with Web sites to help you find the right product. Here are some of the Web sites I find most useful for narrowing down your software search, so you take a huge step in the right direction and save considerable hours of frustration!

Capterra.com

This is an excellent Web site for finding all varieties of business software! First, you select the type of software you are seeking, and then you narrow down your search by checking criteria specific to that software. You can also narrow your search by location, revenue, number of employees and your budget. Capterra has put great care into making their site user-friendly and practical for any business software search, including accounting and payroll software.

SoftwareConnect.com

Here’s another great Web site for your accounting and payroll software search. You can go in and browse software by application (general ledger, accounts receivable, etc.) or by industry. You can also fill in a quick, three-step questionnaire and/or call to speak with a software specialist to have vendors receive your information and contact you. This service is free to software searchers. They do a fabulous job of asking the right questions and finding you appropriate products that fit your budget and requirements.

G2 Crowd

This web site is very useful if you are trying to find reviews about a software company you are researching. User reviews are verified, and you can get some additional information about the products you are interested in as well You can search for products by feature(s).

Of course, this is the Red Wing Software blog, so we want you to know that WE have excellent accounting and payroll software for growing businesses. We do like to talk to each potential customer to be sure we have a fit for their organization, before selling them our software. To talk with a Red Wing Software product expert, call 800-732-9464.

Inventory Management - Ten Ways to Use Accounting Software to Improve Efficiency

  1. Integrate Order Entry

    Do your processes include writing down your customers' orders, only to have somebody else enter the information again to create an invoice? If so, you are spending more money and time than necessary by paying two people to do virtually the same job. You can save time and increase the accuracy of your orders by implementing order entry into your system. Using order entry allows one person to enter and save an order, and that same order can then be turned into an invoice when ready. You will save money, and also reduce human error, increasing customer satisfaction.

  2. Automate the selling of different units of measure.

    Some customers want a case, others want a whole pallet, and still others only want one of that same item. Sound familiar? Do you have to 'trick' your software into handling this scenario, or end up doing inventory adjustments? You can solve this costly problem by setting up one inventory item with multiple units of measure. By setting up the selling units you need for each item, you can have your system calculate how many you have in stock by unit, and you can easily buy, sell and stock your items how you choose. This can save you significant time and will also give you a more accurate picture of how many items you really have in stock. Most importantly, you can quickly tell your customer how many you have available in the unit of measure they choose.

  3. Set up and use assemblies to build or 'kit' items

    Do you put several items together and sell them as a kit? Or, do you manufacture something composed of many raw materials? Do you endure the painstaking process of entering each piece of the final item separately into your accounting system? If so, you can drastically cut down on time and increase accuracy by setting these items up as 'assemblies'. Setting up an assembly allows you to place a finished product on an order, and it will take all of its components out of stock for you behind the scenes. This cuts down on data entry and keeps your inventory counts and costs accurate.

  4. Take physical inventory more often

    Having an accurate count of the items in your inventory can save your company money, and your customers will be happy to get a quick and accurate answer on whether an item is available. You can make your physical inventory process easier by using a system that allows you to keep selling products while you take counts. The sales staff is happy because they can keep selling, the warehouse manager is happy because the counts are accurate, and the customer is happy to receive accurate information in a timely manner.

  5. Track inventory by location

    Is that item in the back warehouse? On the retail floor? Or is it out on one of the delivery trucks? If you store items in more than one location, you should quickly be able to see exactly where it is by location. You can accomplish this by setting up more than one inventory location in your software. If you have the ability to set up unlimited inventory locations, you can even set up (for example) a delivery truck as its own location. Setting up multiple warehouses saves you time searching, and can also reduce costly shrinkage.

  6. Automate tracking of serial and lot-numbered items

    Still tracking your serial or lot-numbered items on paper or in a spreadsheet? Not only does this make the receiving of those items time-consuming, there is no trail associating your customers with the serial or lot numbers for the items they purchase. You can set up your system to capture and store the serial or lot numbers for your inventory upon receipt. Then when you enter your customers' orders, you can choose which serial/lot numbers they have purchased. Your company will save significant time by keeping track of those numbers in one system, and you'll keep your customer happy by being able to quickly access which serial or lot numbers for the items they have purchased. This also helps you keep easy track of warranty information.

  7. Let your software system keep track of customer pricing

    Are you tired of flipping through files to find what your customer paid last time, only hoping that the page on top is the most up-to-date? You can eliminate this hassle by setting up your customer pricing in your software system. By setting up customer pricing in the software, you will ensure better accuracy, keeping your customers happy, and you'll also save yourself wasted time and hassle.

  8. Track profitability of inventory items

    How easy is it for you to see which items are the most profitable? How do you know that the items you promote or sell the most are bringing in the most revenue? With the ability to run reports showing profitability (Gross Profit Margin) by each individual item, you can check often to be sure you are selling the right items. By easily accessing this information, you can focus your sales and marketing departments on selling and promoting the most profitable items, enabling you to improve your bottom line.

  9. Enter purchase orders from order entry

    Have you ever run out of an item, and forgot to put it on order for your customer? You can have your system prompt you to enter a purchase order directly from the order entry screen. By doing this, you will be sure to get the items for your order, keeping your customer happy. You will also save time by taking care of both functions at once.

  10. Know which items you have so you can keep just the right number in stock

    Are you surprised when you run out of an item? Or how about when you find a huge overstock? Set up your system to keep a minimum and maximum amount for each item. Then you can easily run a report at any time, showing what you are running low on so you can order more before you run out. You can be sure you don't waste valuable shelf space by overstocking any items. This will streamline the purchase order process too, saving your company hours of time.

Accounting and Payroll Software - Six Commonly Forgotten Questions When Researching Software

When researching accounting and payroll software for your company, be sure to get these commonly forgotten questions answered, or you may have unwanted surprises down the line.

What are my ongoing yearly costs, and what does that include?

People often remember to ask the upfront costs for a software package but place less importance on the ongoing costs, which can be substantial. Even if your upfront costs are minimal, you may be shocked when you find out as the years go by that there are additional costs for functionality your company requires. For example, you decide you want to start processing payroll via direct deposit, only to find out there is an expensive per-check fee for that service. Another example is support, which can be handled in various ways depending on the software company. Be sure to ask what support is included in the price, what that support includes, and what the ongoing costs for it are.

Can I talk to somebody in my own industry for a reference?

If you own a retail store, then talking to a manufacturer for a reference probably won't help you much because your company processes accounting and payroll in a completely different way. Be sure to talk to a reference that is in a business similar to yours, so you get a true feel of how it could work for your own business.

Will it work with other software products I use?

Most businesses now use software for many different purposes whether it's for word processing or spreadsheet management to time clock entry and electronic data interchange ("EDI"). Be sure to find out whether your accounting and payroll software can fit together with your other software. Having your programs work together saves you significant reentry of data, which saves you time and cuts out a margin for error.

What are the product limitations?

A salesperson by nature does not want to tell you all the details of what a product cannot do; however be sure you understand what its limitations are. For example, you might find out that a software package has the capability for unlimited concurrent users. This may be true in theory, but in reality there is a limitation of how many the system can handle while still running efficiently. This number likely depends on many things like the number of items, customers, transactions, and history saved in the system, not to mention the database technology used. Gain a good understanding of these limitations before purchasing your new software.

How experienced is their technical support staff, and where are they?

Technical support experience varies greatly by company. Be sure to ask about the experience level of the staff that provides support. If you don't get a better answer than, "I'm not sure," you have reason to be skeptical. At times when you need help, you will definitely appreciate having an expert available instead of somebody who knows nothing about accounting or payroll. Do they outsource support services to another company?

Will this work for everybody at my company?

Don't forget that many people in a company are affected by the accounting and payroll software choice. Shipping may need to print special packing lists; accounts payable may need to print 1099 forms, and the warehouse may need a better way to perform a physical inventory count. These are just a few examples of problems that can easily be solved with your accounting software. Include input from people in all departments, so your new system will work well for the entire company.