Project tracking within your accounting software program is a great way to understand the cost of a project. It is fairly easy to set up and manage. Once set up, you track projects by attributing income and expenses to projects each time you enter them. Project tracking is not to be confused with ‘job costing’, which is a more complex function that includes the tracking of a job’s progress, timing, and other information; whereas project tracking deals mainly with the income and expense for a project. Here are the basics of project tracking, so you can decide if it’s the right thing for you to do for your business.

Setting up projects

If your accounting software includes the ability to track projects, you should be able to go into your setup options to create a new project and give it a name and/or an abbreviation. Make sure the name is easily recognizable, so it’s easy to identify during data entry. Keep in mind that you may actually have more than one project within a bigger project, so the name you give each project should reflect that. Otherwise, finding the right project can be confusing during data entry.

Assigning a project during transaction entry

Typically, once this is set up, a field within the transaction entry screen(s) will show you the projects you have available to choose from. Be sure to choose the correct project for that income or expense. If you forget to choose a project to associate with that transaction, most systems will let you edit the invoice afterward.

Getting reports by project

Most accounting systems will allow you to filter a variety of reports by project. Whether you are looking for a sales report, financial or general ledger report, use a filter within your report generation tool to include only the information that relates to your project. By filtering the reports this way, you won’t need to sort through loads of other information to get the information you are looking for.

When you are finished tracking a project and have all the information you need, many systems will allow you to mark that project inactive, keeping your list of projects to choose from accurate and easy to work with.

Once you set up and use project tracking, you might just be surprised how easy it is to keep track of even the smallest of projects. Keep in mind, that many systems also allow you to assign projects to your labor costs for a more accurate picture of complete project costs. Check your system today and give project tracking a try!

Learn why voiding checks is important within your accounting software, and also the general process for voiding checks.

A check should be voided if you still have the check in hand, and the check amount is incorrect, it was issued to the wrong vendor or bank, or the invoice should not have been paid. Once a check has been voided, a record of that transaction remains in the system. If you have already sent out the check, you should only void the check if they never received it, and you need to send a new one.

The void check function is used to cancel an existing payment transaction. If the check had been used to pay an invoice, then voiding that check will also reverse the payment for that invoice, returning it to an unpaid status. Once the open invoice has been restored, it will again display on the open invoices and vendor aging reports. If the original check was entered without applying it to open invoices, then the void process will also void the expense portion of the check.

If a check number had not previously been recorded, due to the check being destroyed before ever entering the system, you will have a gap in sequence numbers. If your business likes to account for all check numbers, it is good practice to record and void that check in your accounting software. That way you will not question the missing check number later on, as it will be accounted for within the system.

In most industries, and even non-business related activities, there are tools you can use to compare how you’re doing to some compilation of data from other similar ventures. While I believe comparative analysis is certainly something that should be considered, a more important measurement is how you are doing in your own world today and your individual trends over time.

I’ll share a few personal and business examples of average statistics that aren’t necessarily good numbers to shoot for. A golfer on the PGA tour usually puts a new ball in play every few holes of a golf tournament because he hits the ball with such power that he actually wears out the ball, while the average golfer should be able to play the same ball for at least a couple rounds. I, too, put a new ball in play every few holes, but it’s because I either hit something that scuffed it up, or it’s too deep in the woods or the pond to find. Don’t quote me on this because the facts may be a little fuzzy, but I once read an article that, on average, most serious private aircraft accidents happen when the pilot has around four hundred hours of flying experience. Of course, this is not a statistic that most pilots want to aspire to.

On the business side, there are industry measurements that a software company like Red Wing Software should spend about sixteen to eighteen percent of its budget on development. Again, that might be something worth measuring against, but we as a company need to look at our particular situation and determine if that is the right allocation for us. Another example would be comparing a particular business ratio against a specific industry benchmark. While that individual indicator might be way off, you should look at several indicators and determine if there is an anomaly in that one measurement and everything else is in line. It might be because of some significant difference in your particular business.

When doing business (or life) comparisons, make sure you look at all the facts that could affect the validity of the measurements, and make appropriate decisions. I personally prefer to look at trends and make certain they are headed in a positive direction. I’m down to about five new golf balls per eighteen-hole round.

Here are some useful post season tax tips for business owners by FoxBusiness.com!

http://smallbusiness.foxbusiness.com/finance-accounting/2012/04/27/post-tax-season-tips-for-business-owners/

We recently conducted a survey to learn more about what business people experience when switching from one accounting software program to another. Of the respondents who had made the decision to switch software, 66% of them said they did so because they needed more advanced features. At Red Wing Software, we do find many customers need more robust features that can handle their accounting in a way that helps their business run more smoothly. Here are some of the most common features companies begin to need as they grow.

Manage multiple companies

Many of the basic accounting software programs put a limit in the number of companies/entities you can have and manage in your accounting software. This is fine at first, but as you grow, you may add companies and may want to manage and track their financial information separately. Many of these customers turn to Red Wing Software since our products offer the ability to set up and manage unlimited companies/entities. The ability to do reporting for one, all, or a combination of your companies which is often not found in more basic products , is another feature offered by Red Wing Software products.

Increased data capacity

If your system is getting bogged down, running slowly, crashing often, or simply performing poorly, you may be reaching that system’s data capacity. This is typical of basic systems after you have used them for some time. Many things can contribute to filling up a system’s data capacity: the number of transactions, inventory items, or even the amount of history stored in the system. Most basic systems place a finite limit on capacity of those items, cutting you off abruptly once that limit is reached. (For instance, you can only enter 20,000 inventory items or two years of history, etc.) Red Wing Software offers products that have unlimited storage capacity, where a finite number is not placed as a limit on any of those items. (Note: Please keep in mind that, although no finite limit is placed, hardware capacity may be reached someday, if used for long enough.)

Better/custom reporting

What good is an accounting software system if you cannot pull out the information you want and need? The profitability of your business depends on it. Whatever information you were able to pull out at the start may not be enough for you, the management team, or third parties, such as banks, who are requesting information from you. The inability to get information the way you want or need it is a good sign you need a better accounting software program. Red Wing Software products do offer a wide range of standard reports, and also the ability to add, remove, and move around fields of information on reports. You can also name and save your reports in a list of favorites so they are easily accessible when you need them!

These are some of the most popular reasons we find companies turning to Red Wing Software products as they outgrow their older, more basic accounting software. There is a long list of reasons businesses outgrow their accounting software, and surely your reasons are unique. If you have outgrown your software and need something new, give us a call at 800-732-9464 or e-mail info@redwingsoftware.com.

April just so happens to be “Records and Information Management Month,” a holiday created in 1995 by the ARMA International, which is a professional association that emphasizes the significance of document and information management, and its impact on business worldwide. In honor of Records and Information Management Month, here are two ways to keep your accounting and/or payroll software records safe.

Menu level security

Menu level security allows you to password protect databases, set up additional users, and track transactions entered by each user. You can also limit access to menu selections, so that an employee can only access the screens you allow. Using menu level security helps keep your data safe, while allowing employees access to the screens they need to perform their job.

Create and test backups often

Everyone keeps bugging you about making sure you get backups often. Don’t you wish they would just quit bugging you? Well, they are right. We are a software company providing support to our customers nationwide, and we see the unthinkable happen far too often: customers losing their data, partially or totally. The reasons for the loss of data are varied, but the inability to recover that data is due to the lack of a backup, or a backup that was never tested and doesn’t work. Just like so many other things, most businesses think it won’t happen to them. But it can. So take your backup and test it often.

Oh, and happy Records and Information Management Month!

I recently attended an annual meeting of an organization that deals with financial standards, and how information should be tracked and analyzed for their particular industry. It’s amazing how many different ways accounting rules can be interpreted and applied, even though there have been generally accepted accounting principles (GAAP) for scores of years. One of the important things for this, and many other industries, is the ability to do comparative analysis with their peers. In order for this analysis to be meaningful, it is important that everyone be keeping records in a similar way, so they don’t end up comparing apples to oranges. So when people have differing ideas on how to do things right, it makes for interesting “discussion”.

We have similar issues within our own software products since we provide solutions to so many different kinds of industries. What works well for one company, might need to work differently for another. That raises some challenges when it comes to designing software. We are fortunate to have a wide range of knowledge within our organization, and try to make our software flexible enough to handle many complex scenarios. We often call on our customers to provide input during the design of features, and appreciate their willingness to share their knowledge, as well.

Please keep providing us with your input, and we’ll do our best to supply products that meet your needs.

Accounting Software is a tool that can help you manage your financial information and keep track of a variety of business data. Of course its main purpose is to give you a clear view of your financial and profitability status. In addition, the right accounting software can make a drastic difference in the efficiency of your office! That’s why it’s important to be sure your software is keeping up with your business needs. If you outgrow your accounting software, your financial data may become questionable, and your efficiency may go downhill. So how do you know if you are outgrowing your software? Here are three clues you are headed in that direction!

You can’t get the information you need.

The main purpose of accounting software is to provide you with the data you need for your company. Perhaps you want to see how profitable you have been for a period of time or whether you can afford a high dollar purchase. You should be able to gather that type of important information out of your accounting system, without any problem or hassle. If you find that the information you need is difficult to obtain, or takes a lot of manual calculations, it might just be time to look for a new system that can give you the information you need.

Processes take forever.

If data entry seems to take a long time, functions such as entering invoices or other information into your accounting system, you should check into why that is happening. Perhaps your needs have grown and you are no longer able to enter information in a way that fits your business. Your business may have grown to need purchase order management or order entry. These, along with many other accounting software features, are things that companies start without, but find useful as they grow. Look at the processes that have become time consuming, and see if your current system can be set up to handle them. And if not, you may be ready to move on to something new.

Your system seems frustrating rather than helpful.

Let’s be real here; all accounting software is frustrating when it’s brand new. But, shortly after you begin using it, you should start to feel it become a big help to you. If you have been using an accounting system for a long time, you may start to find yourself ‘tricking’ the system or creating your own workarounds to get it to do what you want it to do. This becomes a huge waste of time, and can also be very frustrating. It’s also a sign that you may want to start searching for a new accounting software system.

No matter where you are in your business lifecycle, your business can outgrow the accounting software you are using. Knowing when to move on and search for something new that fits better can keep your business running smoothly and also provide the tools you need to understand your business finances. For free accounting software guides, check lists and articles to help you find the right accounting software for your business, visit http://www.redwingsoftware.com/rwssn/find-accounting-software/.

There has been a trend in the last couple of years to use accounting software as a service or ‘in the cloud’, which basically means using the software which is hosted on somebody else’s server, instead of your own. You access the software and your data via the internet. No matter whether you prefer cloud-based or installed accounting software, you should always be sure that if your data is hosted elsewhere, the company you are working with is a trusted partner. Here’s why it is so important.

Security

When your data is hosted outside of your facility, somebody else is in charge of the security. Therefore, the more familiar you are with these people, the more confident you will feel with your data in their hands. And while pricing is important, probably the most important thing is trust. So choose a trusted partner, rather than an unfamiliar vendor who gives you the lowest price.

Control

If something goes wrong with the company hosting your data, you will want to be sure your data is safe. Think SOPA (Stop Online Piracy Act, U.S. House of Representatives) and PIPA (Protect IP Act, U.S. Senate). These bills are aimed at foreign Web sites that infringe copyrighted material. These two pieces of legislation could greatly affect the use of data on the internet. Who will regulate what? Which site might be shut down as time goes on, in the quest to stop online piracy? No matter what, you will want to be sure your data is controlled by the company you have carefully chosen and trust. Of course, no matter whether your data is stored internally or externally, there are risks. But you can cut down on the risk by choosing an external host who is a trusted partner.

Backup

Never underestimate the importance of a good backup. When your data is hosted elsewhere, there is somebody else besides you in control of backing up your data, so you should check into how they are handling that. Make sure you are comfortable with the frequency with which they back up your data, and also the procedures they use to do so.

The internet is becoming more useful to businesses every single day. And yes, we should all take advantage of the time and cost savings benefits that it can provide. Simply be aware of the risks and dangers of hosting your data with somebody else, be sure you are working with a trusted partner, and most importantly, keep an updated backup of your data. There are circumstances for which you should weigh your options very carefully before moving forward. With whom you host your data, the heart of your business, is one of those times.

Small businesses are definitely aware of the challenges of trying to compete with bigger companies. Not only do bigger companies have deeper pockets, but their budgets allow for cutting-edge technology to help them keep their customers happy. There are accounting software features available to help small businesses compete with the technology of large companies! Here are just a few of the features that help small businesses compete and keep their customers happy.

Multiple price levels

Have you ever put your customer on hold while feverishly searching for their pricing in a paper file? Consider using your accounting software to set up different pricing levels, so you can immediately see your customer’s price while you are on the phone with them. This makes your customer happy, and it also keeps you more organized and accurate.

Custom invoice tools

With the growth of technology comes the ability to print your invoices exactly how you want them. Having this ability allows you to look much more professional than just using a standard template without your logo and other crucial brand information. Use your software to personalize your invoices, and you will keep your image fresh and professional, just like the bigger companies.

Transaction search

Do you scramble to find customer information while they are on the phone? Perhaps the customer only knows the invoice number or the date, or maybe only the product he or she purchased; now it’s your job to search for the document based on what the customer has given you. It’s true the bigger companies have fabulous software systems, but nowadays many of the smaller systems are quite powerful and allow you to find what you are looking for fast. Check to see if your accounting software has transaction search capabilities, and find out all of the different ways you are able to search for information. You might be surprised about the variety of methods you can use to find what you are looking for! You can keep customers happy by giving them the information they need more quickly, rather than scrambling around or asking them to provide alternative information.

Customer reports

You may not think an accounting software report can benefit your customers in any way. One of the best ways to stay in touch with customers or find out which customers have drifted away is by running a customer analysis report. From there you can see who has purchased what, and when. You can detect customers who may have gone away, and give them a call to touch base. Or, you can call those customers first when running a special, to let them know about the special before anyone else. Using this report can let customers know you care about them and their business before they start buying from somebody else. That is a personal touch the larger companies are likely not going to offer.

Small touches can add up to a better experience for your customers! Use simple accounting software tools to enhance your image and keep your customers happy.