Notes from the President

Ken Hilton - President Red Wing Software

We are fast approaching the end of 2023, and I wanted to use my space this month to communicate some important information that needs to be considered before year-end, or shortly after the beginning of a new year.
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 be planning some much-needed changes to make it better? Be sure to check every line item. Starting with a zero-based budget guarantees you won’t miss something that might need attention.
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? Finding good employees is harder now than ever, and we need to remain competitive in the marketplace to keep them.
It is a good time to remind employees to update their W-4 information for changes that have occurred during the year, like getting married, having children, buying a house, or anything else that might change their withholding needs.
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 technology today, review procedures and policies, help employees better manage their information, and plan for the new year.

Notes from the President

Ken Hilton - President Red Wing Software

When is it a good time to hire an outside professional? More often than you might think. You are probably really good at what you do in your career (or you should be doing something else). Even though you are an expert in your field, several things go on in any business outside your area of expertise.
Since you’re reading this newsletter from Red Wing Software, I think it’s safe to assume you have some role that includes dealing with financial information. You might enter checks, record deposits, calculate payroll, or take a big-picture view of the business using reports to analyze where the business should go. And, in some cases, you may be responsible for all these things.
Even if you have a firm grasp on all financial functions in your company, it always helps to get someone from outside the organization to review the information and give an opinion or even audit how things are being done. I’ve mentioned in several columns that if we think everything we do is done the right or only way, we probably won’t make needed changes and grow the business or our knowledge.
I’ll share an example of how Red Wing Software employs outside professionals. Although we have been producing accounting and other financial management software for over 44 years and have many people with vast knowledge of accounting processes, employ our own in-house accountant, and have Certified Public Accountants on staff, every year, we have an outside accounting firm perform an audit of our records and give their opinion, and have them prepare our corporate tax returns.
I heard a great saying on a recent webinar I attended, “You should do what you do best and hire others to do the rest.”

Notes from the President

Ken Hilton - President Red Wing Software

Over the 44-plus years that Red Wing Software has been in business, we have been able to hire great people and are fortunate that many have been with us for a long time. Our average length of employment by our team members with Red Wing Software is slightly over 22 years. We make every attempt to hire the right people and fully intend for them to remain with us until they decide to retire. We have two such team members that have reached that decision.
Dan Brimberry has been with us for almost 31 years, serving in several roles. Dan has been part of our internal Accounting team, Quality Assurance team, and most recently, our Design Manager for all our financial management products. Dan is also a CPA and has helped us ensure our offerings comply with Generally Accepted Accounting Principals (GAAP). Dan’s last day will be October 6th.
Julie Strain has been a part of the team for almost 28 years and has worn many hats. Starting in support, she became our primary instructor for classroom training and online webinars, has worked with the sales department to help make sure our products were a good fit for new customers, and most recently works as an Implementation Consultant assisting new users set up complex business structures to get the most out of our software. Julie’s last day will be September 29th.
Both longtime team members will be sorely missed, but rest assured we have the right people in place to fill the gaps these retirements create. We wish Dan and Julie the best in their retirements, and we’re certain they will have plenty to do to fill their newly acquired time.
Finally, after occupying the same building for around 27 years, this month, we will be relocating to a space more conducive to the way we do business today. The headquarters will remain in Red Wing, MN, at a more convenient location for those who spend the most time physically in the office. I am a big proponent of good change: although sometimes challenging, it’s always exciting.

Notes from the President

Ken Hilton - President Red Wing Software

I recently attended the Farm Financial Standards Council annual meeting in Illinois. This organization’s mission is: Promoting Uniformity and Integrity in Financial Reporting and Analysis. One of the sessions was a panel of three bankers discussing what information bankers typically use to evaluate loan risk and what they would prefer. The panel was very diverse, with one panelist from a nationwide lending organization, one from a local bank, and one mortgage lender.
They all discussed the need for recent tax returns and a balance sheet. They mentioned they typically get balance sheet information for varying times of the year, and sometimes handwritten. While, in some cases, competition for the loan dictates they don’t push for more information, what they really would like to see are much better and consistent records.
In every case, they mentioned wanting professional-looking balance sheets prepared in the same period each year, accrual profit and loss statements so they can evaluate trends in the business over time, and projections for the business. It was interesting that another conference session talked about succession planning and the importance of good records when it’s time to transfer the business to someone else.
I understand I’m preaching to the choir since most people reading this already can produce these important documents with their software. But, at the risk of repeating myself from previous articles, “If you keep good records for yourself, you’ll have good records for anyone else that may need them.”

Notes from the President

Ken Hilton - President Red Wing Software

This may sound a little strange at first, but I choose not to celebrate the 4th of July. However, I do celebrate Independence Day, which happens to be on July 4th.
We tend to recognize, observe, and celebrate dates rather than the events that made the dates important to us. Remember the special events that happened on a date and recognize why that date is significant.
These thoughts can carry into your business management, as well. Every day, week, month, and year we run various financial reports to track how our business is operating. We look at a Balance Sheet and get a snapshot of the financial health of our business, but do we dig into it and determine what caused the changes on this report? We run an Income Statement, P&L, Statement of Farming Activities, or Statement of Revenue and Expenditures (depending on your type of organization), but do we take the time to drill down and determine why the business is heading in the direction it is?
Every country and business has events and reports that they recognize and review at certain times of the year. Let us make it a point to remember why we are running these reports and the reason we are celebrating these dates.
Independence Day is also a great time to remember everyone who keeps us free and safe, especially in challenging times.