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.

Ah, the 80/20 rule. I am sure that at some point in your business or personal life, you have heard of it. Also known as the “Pareto Principle”, this rule says that for many events, roughly 80% of the effects come from 20% of the causes. We do use this rule here at Red Wing Software within our software products. When applied to product inventory, the rule says that 80% of your sales are from 20% of your inventory items. Knowing which items of the 20% are garnering the most sales can be crucial to growing your profits. That's where ABC analysis can come in handy. An ABC analysis within your accounting program can show you which items are most profitable. Our accounting software offers ABC analysis, which is an excellent tool for businesses.

But all science and math aside, have you ever noticed that the 80/20 rule can also apply to real life? As I think of my life, I can think of a few examples of where this rule might apply. For instance, about 80% of my free time is spent watching hockey and transporting my son to games. Yet when I originally signed him up, I would have thought it to be much less time consuming. My son’s hockey really only constitutes about 20% of the ways I love to spend my free time. Therefore, my surprisingly full and hockey-packed free time fits with the 80/20 rule!

What are some examples of the 80/20 rule in your life? Answers need not be serious or technical.

I can still remember when the only way of reaching out to someone was by phone or mail, or in person. I know that many of you can too, even though the children in our lives are baffled when we tell them we had to actually just figure out plans ahead of time, talk in person, and sometimes, just wing it because we didn’t have a cell phone to call anybody. Of course, now there are cell phones, texting, e-mail, instant messaging, Facebook, and so many more ways of reaching people! Here are some unconventional (and also not too painful) ways to take advantage of today’s technology to stay in touch with your customers.

1. E-mail a useful document

   You can find an unbelievable amount of information on the internet for free, including case studies, white papers, marketing tips, research information, instructional videos and much more! The next time you find something that could be useful to one of your customers, send them that document via e-mail. It only takes a few minutes to send, and your customer will appreciate the fact that you thought of them!

2. Invite them to connect.

   Some of you are probably thinking, “This is not an unconventional way of communicating—it’s the norm.” But for some people, connecting via LinkedIn, Facebook, and Twitter is uncharted territory. A great place for a business to start connecting with customers on the internet is LinkedIn. LinkedIn is a network of business professionals and is a place where you can learn all about your customers (if they are members), meet new contacts, join industry groups, answer business related questions, and much more. It’s completely free, too. Visit www.linkedin.com to learn more. In fact, I’d love to be your first connection! Click here to see my profile and invite me to be your connection.

3. Invite them to a trade show.

   You are likely in an industry similar to your customer, so why not invite them to come along to the next trade show? If you are an exhibitor, some trade shows will pass out free passes for you to hand out to your customers. Take advantage of this, and provide your customers added value by letting them get in the doors for free. By the way, click here to view the Red Wing Software trade show calendar. If you are a customer interested in attending, we may be able to help. Send an email to marketing@redwingsoftware.com with a subject line of TRADE SHOW to learn more. Please include your customer name.

Processing payroll on time is crucial to the management of your business. As your company grows, you may find that payroll processing becomes more complex with tax requirements, multiple employee types, increasing deduction types, and much more. To efficiently manage your payroll, you will need to choose the best options for your business to process payroll allowing you to continue to pay your employees on time, ensure taxes are filed promptly by due dates and still have access to the information you need.

1. Cost

   As your number of employees grows, so do your labor expenses. Many people start their business using a payroll service, yet as business increases, they realize the expense grows out of hand. Once the cost of using a payroll service starts to outweigh the convenience, you may be ready to bring your payroll processing in-house and use payroll software.

2. Staffing

   Whether you use a payroll service or payroll software, you will need somebody to manage the process. Functions such as collecting employee pay data and editing employee information will need to be manually entered into a payroll software system or delivered to a payroll service.

3. Tax Filing

   Probably the biggest benefit to processing payroll with a service is their guarantee that they will file your taxes in a timely manner. However, payroll software providers currently offer online tax filing or complete tax filing fulfillment options. These options make the Federal and State tax filing processes much easier.

4. Control

   Some companies need or desire tight control over their payroll. Some reasons for this include having a large number of employees or the need to track data by different departments. Companies needing control of their payroll are better suited, in most cases, to processing payroll in-house using payroll software because often times a payroll service cannot provide the flexibility they need. With in-house payroll software, changes can be made instantly and there is no need to wait for somebody else to make them.

5. Security

   Obviously pay data is sensitive, and should be protected. With in-house payroll software, be sure the system offers security tools so that only authorized employees can see certain screens or data. A system with menu level security is helpful so that certain users can only see the screens you give them access to within the system. With a payroll service, if you are entering data online, be sure your service offers security measures so your data cannot be captured by somebody else.

6. Reporting

   Every business has a different set of payroll reporting needs. Perhaps you want to know labor expenses by department or expenses for just one or a combination of your locations. Typically, there is more flexibility in reporting when you are using an in-house program with report editing capabilities. If you are using a service, be certain your service provider can give you the data you need, when you need it.

There are variations of product offerings among payroll software providers as well as payroll service providers. No matter which method you choose, be sure to consider all of the above so that your payroll runs smoothly.

One of the great benefits of accounting software is the ability to slice and dice your data so that it means something to you and your business. Well, consider ratio analysis an extension to your standard reports. Why? Because ratio analysis gives you information not found in your standard financial reports. It goes a step further by helping you pinpoint areas of strength and weakness in your business, so you can increase profits and reverse negative trends.

How do you stack up?

Ratio analysis allows you to make comparisons between your business and your competitors’. You can view standard industry trends, so you understand where your business stands in comparison. Once you know where you stand, you get an idea of which areas of your business to improve, giving you a distinct advantage over your competitors.

Just the facts, please.

It’s one thing to have ratio analysis data, and still another to understand where the numbers came from. Use your ratio analysis tool to generate the data, and then drill down further to understand exactly what makes up those numbers. This allows you to understand patterns within your business, so you can make better management decisions moving forward.

See the forest through the trees.

There is power in looking at details up close, but even more in being able to compare your data from two different time frames. Maybe last year wasn’t profitable and you want to turn it around. Or maybe you struggled last month and want to know why. Use ratio analysis as a high-level tool to see trends over longer periods of time, so you can achieve long-term financial growth.

By using ratio analysis, you can access information and trends that you may not have noticed, so you can make changes accordingly, which will benefit your business!