CFO Daily News has taken the subject of Obamacare and laid our some next step items for employers. The article mentions the upcoming need to report the cost of healthcare expenses on employee W-2s, and the need to cap flex spending limits. Both of these (and more) can be handled within CenterPoint Payroll Software.
http://www.cfodailynews.com/obamacare-stands-your-first-moves-now/?pulb=1
July is National Blueberry Month! Red Wing Software happens to have many blueberry growers as customers. In fact, there is a wide variety of berry growers using Red Wing Software accounting software and payroll software applications. We checked in with one customer, a blueberry grower, and one Red Wing Software partner to see what they had to say about blueberries, in honor of National Blueberry Month.
Red Wing Software customer Liddy, from Lakeside Blueberry Farms, had this to say: “Michigan blueberry growers were much luckier than the tree fruit and grape growers (most of crops were destroyed by frost). Tonnage will be down, but we're in good shape compared to them. The industry is still going strong, but we're seeing less hand picking for fresh because of a limited work force. On top of that, growers are getting better prices for processed (machine picked).”
Red Wing Software partner Phyllis Baldwin has been working with several blueberry farmers in Michigan and had this to say: “Red Wing Payroll both Windows and CenterPoint meet the requirements of the labor department to show the hours worked for pieces picked and Gross dollars on the paystub. The labor department has also required the farmers to make sure the worker understands the paystub (multi-language stub if necessary) and signs the bottom pay stub. We have designed a custom check with approved statement on our pre-printed checks forms. The farmers are very happy with the ability to use data collection equipment to import into both payroll systems.”
Red Wing Software is proud to support blueberry growers nationwide. We wish a happy and prosperous National Blueberry Month to all!
I thought instead of telling you what I think in this blog post, I would just ask some questions to provoke some thought. I think you’ll likely know what I think by reading the questions I ask. Are you running your business, or is your business running you?
Do you control the expenses in your business by operating from a budget, or do you operate “seat of the pants”?
Do you have processes in place (and documented) for internal job functions, or do you assume everyone knows what they are supposed to be doing?
You know that everyone in your organization has certain responsibilities. Have they been clearly communicated, and do the people in your organization know they have these responsibilities?
Do you know the true cost of items that you produce or buy for resale, including indirect costs?
Do you know your most profitable items and those items that are not so profitable and maybe should be discontinued?
Do you know your businesses key financial ratios, what they mean, and where the danger levels are?
Do you analyze the return on new asset purchases before the purchase has been made?
If you think you have good answers to all of these questions, good for you. I challenge you to continually ask these questions throughout the year, and improve operations through better management.
At Red Wing Software, we evaluate our position and try to answer these questions regularly. We feel that once we think we know all the answers, we stop improving.
(Continued from the previous post) Using business ratios can help you analyze the financial health of your business. You can use ratios to help compare your business against other businesses similar to yours, and to see how yours compares to the industry averages. By comparing your business, you can identify trends and make changes accordingly. Here is Part 2 of the components of ratio tracking, what they mean, and how they can help your business.
- Inventory Turnover: This ratio measures how quickly inventory sold. A higher number generally indicates efficiency. However, companies must be careful of stock-outs in situations where too little inventory is kept on hand.
- Net Profit Margin: Measures the profitability in terms of return per dollar of net profit.
- Quick Ratio: This ratio is often used to evaluate a company’s immediate liquidity position. A quick ratio that is too low indicates greater risk for creditors and investors.
- Return on Assets: This is often used as an overall index of profitability. The higher the value, the more profitable your business.
- Return on Equity: This ratio measures the rate of return on money invested in the company by the owners. The higher the value, the more profitable your business.
- Working Capital: Because it is a dollar amount, this measurement is difficult to compare with other similar businesses, since you must also take into consideration the size of the business. However, it is a measure of the amount of funds available to purchase inputs and inventory items after the sale of current assets and payment of all current liabilities.
Use business ratio analysis to reveal trends and understand where improvement is needed in your business. Use ratios to make comparisons, understand your business, and stay ahead of your competitors.