Notes from the President

03 March 2021 khilton Notes from the President

Ken Hilton - President Red Wing Software

Unless you live in a bubble (which I am sure it has felt like the last few months), you know it has been cold in most of the country the last few days. It is interesting how all things are relative to some perceived standard. As I write this, it is thirty-nine degrees in MN and feels like summer. Last fall, when it was thirty-nine degrees, it felt like the middle of winter.
If you are in a seasonal business, the year’s busy times can feel like you are on an unstoppable roll, and the slow times of the year can feel like things are bad and can’t get any worse. That is when you need to step back and take a high-level look at the business and get the perspective on where the business truly is and when it will get better.
Doing some trend analysis over several years can give you a clearer picture of where you have been and the long-term direction of the company. You can accomplish this using the multi-year balance sheets, cash flows, and income statements available in your accounting software. Using the optional Ratio Analysis in CenterPoint® Accounting will give you a great visual trend of many financial indicators.
Whatever method you choose to get perspective on the business, it is important to make decisions based on all available information.

Notes from the President

02 February 2021 khilton Notes from the President

Ken Hilton - President Red Wing Software

I am certain you’ve heard more about viruses recently than you care to admit, but I want to remind you about a different type of virus.
Recently a long-time customer contacted us about an issue they had with ransomware. Ransomware is a malicious program that infects a computer when the user opens a file or clicks on a link in an email that comes from an unrecognized source or may have even been forwarded by someone you know. Ransomware typically prevents access to information on the machine until you pay a ransom to the individual that created the virus. The alternative to paying the ransom is to restore a backup from a time before the computer was infected.
I bring this up to point out the importance of regularly backing up your data and keeping your antivirus software and operating system up to date with current versions. As older versions of operating systems and software are phased out and not supported by the authors, updates that include code that attempts to prevent these attacks are no longer available. The cost of keeping your technology (hardware and software) up to date is far lower than the price of recovering from malicious activity. Another possible solution to protecting your accounting and payroll programs and data is to move them to the cloud. Hosted environments offer some added security and protection from viruses and malicious activity.
As you create your budget for the year (which should be complete for 2021 by now), in addition to the normal budgeted items, you should include a line item for keeping your technology current.

Notes from the President

06 January 2021 khilton Notes from the President

Ken Hilton - President Red Wing Software

I hope everyone had a safe holiday season and are starting the new year on the right foot. Now is a great time to look back at 2020 and evaluate what we learned about how we do business. As I mentioned in a previous newsletter, I am a strong believer in zero-based budgeting, only using history as a guide. Budgeting for 2021 is a perfect example of why you would not necessarily want to use the previous year as a benchmark. The same process can be used for other aspects of the business.
We all probably made some unexpected changes in the way we operate our business and hopefully learned some important lessons. I will share a few of the lessons we learned at Red Wing Software, and maybe you can relate them to your own business.
We learned: while our team enjoys working together in an office environment, they can be at least as productive working from home. In fact, a few commented how they did not miss the commute through the little city of Red Wing to get to the office on the other side of town, especially our folks crossing over the river from Wisconsin.
We learned: meetings can be very productive using video conferencing, and it was surprisingly easy to get everyone up and running with that technology. Thanks to Larry, our awesome IT Manager.
We learned: we can get by with considerably less office space, but still need a place for shared resources like copy machines and postage equipment.
We learned: we can bring a new employee up to speed without being face-to-face in the same office, but it is much easier to transfer knowledge in a shared environment.
While we hope 2021 does not mirror the previous year, we will be starting with a blank page as we move forward, taking advantage of the lessons we learned in 2020.

Notes from the President

09 December 2020 khilton Notes from the President

Ken Hilton - President Red Wing Software

One of the things we enjoy at Red Wing Software is the extremely low turnover of team members. To illustrate that point, the average tenure of our entire staff is slightly over 20 years. I attribute this longevity to the fact that we have an amazing group of people working together focusing on “Creating the Best Management Software Experience” for our customers. The downside to all of this is when someone reaches the point they want to retire; they take with them a vast amount of institutional knowledge.
One such retirement will take place at the end of the year. Jim Long, our CEO/CFO, has decided it is time to move on to other passions. Jim started with the company in September of 1990, so he has over 30 years of guiding Red Wing Software and making it the company it is today.
I have always learned a lot from everyone I have ever worked with, and in Jim’s case, I could write a book on the knowledge he has shared with me. Anytime I was at the point of jumping off a cliff, I could count on Jim to talk me off the ledge and help keep me grounded.
In addition to Jim’s high-level leadership of the company, as CFO and a CPA, he was a valuable resource for anything financial. He also helped determine the direction for new software products and enhancements to existing programs. While he has done a great job of transferring knowledge to the next generation of team members, they will greatly miss his leadership.
We wish Jim the best in his new stage of life, playing golf, enjoying his grandkids, and doing whatever he likes in his newly found free time. When the country gets back to normal, and travel becomes a little easier, we hope to see Jim and his wife back in Red Wing for some golf and comradery. Please join me in thanking Jim for his leadership over the last 30 years.
With the holidays in full swing, now is a good time to remember all the important people in our lives. On behalf of Red Wing Software, I want to wish a Merry Christmas, Happy Hanukkah, and prosperous New Year to our families, customers, co-workers, partners, vendors, friends, and especially all the people that help keep us safe and free.

Notes from the President

03 November 2020 khilton

Ken Hilton - President Red Wing Software

We are fast approaching the end of 2020. Whether your company operates according to a calendar year, or a fiscal year, there are a few things that need to be considered to prepare for the new calendar year:
• How is your budgeting process going for the new year? Will next year be the same as this year, or should you plan some much-needed changes to make it better? I believe in zero-based budgeting, so every line item needs to be considered.
• Have you installed all the latest versions of your software? You don’t need to wait until after the first of the year to get up to date. Doing it now saves pressure later.
• How about benefit changes? Have you reviewed insurance policies, retirement plans, and other items important to you and your employees? It is harder now than ever to find good employees, and we need to remain competitive in the marketplace to keep them.
• It is a good time to remind employees to update W-4 information for changes that have occurred during the year, for example, getting married, having children, buying a house, or anything that might change their withholding needs. Did you know that at the beginning of this year, the IRS released a new 2020 Form W-4 with significant changes from the previous form?
• How is your budgeting process going? Oh, did I already mention that? I read once that, “If you always do what you’ve always done, you’ll always be where you already are.” Is it time for a change?
So, update that important software today, review procedures and policies, help employees be better managers of their information, and plan for the new year.