Category: Information Technology

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4 Rules of Thumb for Getting Business Benefit From EDI

The First Step in Transformation is to Stop Doing Things Twice

Double-entry is dumb. Entering data once introduces the possibility of making an error, and entering the data again only increases the chances for a mistake. Typing information into the computer also takes time and the more manual entry is done the greater the potential is for input errors which take even more time to find and correct. Manual entry of information may be required when starting with a paper-based process, but double-entry of information doesn’t make any business sense. In this age of computers, the internet and electronic commerce, reducing manual entry to increase performance and accuracy is more important than ever. Thankfully, manual data entry is being eliminated and EDI is the foundation that helps make it happen.

tall-tower-vancouver“… the key is the unattended and intelligent movement of data from one system to another.  People don’t have to get involved in order for the information to flow from one system to another… it just goes by itself.  Like a robot.”

Robots are just automation you didn’t know you needed

Electronic Data Interchange (EDI) is the use of computer and telecommunication technology to move data between or within organizations. EDI uses strictly structured information that can be transferred from one program to another without human intervention. EDI is one of the most important subsets of e-commerce, being the technology that helps two parties exchange information around a commercial transaction. One of the fundamental first steps in business transformation is the automation of business processes, and this is the main goal of EDI.

EDI addresses and solves problems inherent in paper-based processes. For many, EDI is the basis for reengineering processes and giving manual workflows an automation overhaul.

4-rules-of-thumbHere are 4 Rules of Thumb regarding implementing EDI in the business and where it can deliver the biggest benefits

Rule 1: Go paperless and reduce or eliminate paper-based processes

Delays in activity performance and access to information are often due to paper-based processes, where transportation, storage and retrieval of documents cost valuable time. Labor costs are also higher when paper-based processes reign, increasing overhead costs for document processing and handling. Non-EDI systems also tend to be more error-prone because information is keyed multiple times, and because documents are transported, stored and retrieved by humans.

Rule 2: Reduce operational costs by increasing the speed of business and decreasing processing times and errors

Cutting costs is a top benefit of implementing EDI in the business, centered on doing away with the use of paper while automating key business transactions, saving both time and money in the core process as well as in error correction and problem resolution. Increased productivity is an expected result of employing paperless solutions and technologies. By reducing paper-based processes and embracing electronic transaction processing, businesses can handle more operational activities with the same (or fewer) human resources.

Rule 3: Re-Structure workflows to improve activities that make customers happy

Using EDI in the business helps to structure information and workflows, increasing efficiency and process performance in a variety of areas.

EDI also improves performance because processing time can be reduced to seconds, enabling greater efficiency in services delivery and a level of responsiveness that makes customers happier. Because EDI permits access to a potentially vast amount of detailed transaction data, the information can now be used to automate other processes and stored for analysis.

Rule 4: Get better data and more insight

EDI solutions help to minimize errors in the data, creating a basis for better reporting and analysis. Mistakes in data entry or order taking can be significantly reduced (if not eliminated), and well-structured data removes the need for “interpretation” of the information. Replacing paper documents with electronic ones can also make it easier to keep track of the status of an item, which is why EDI solutions ensure traceability of transactions that paper-based tracking can’t readily provide. All this serves to help the business gain the insight necessary to respond more quickly to changing market conditions and customer demands.

Integrating EDI into the business processes is key to improving business performance in a wide variety of areas. Like moving from phone to fax orders, or from fax to online, EDI represents a big change in how transaction processing takes place. By enabling EDI transactions with current and new suppliers and channels, the business also enables more efficient, seamless communications between all participants in the supply chain. Removing the need to re-key data and reducing the need to rely on human manual processes, EDI systems connect orders and invoices and shipping and returns… and all the trading partners along the way.

 

jmbunnyfeet

Make Sense?
J

 

cropped-logo_mc_w_short-1Cooper Mann works closely with the experts at Mendelson Consulting, experts at QuickBooks and EDI.
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4 Rules of Thumb for Better Inventory Management

Do you know where your stuff is? I’m talking about your inventory, and whether or not you know exactly where it is. Surprisingly enough, many small business owners don’t know where their stock is (and isn’t) or when it will get to where it is supposed to be. Whether the items are in-stock or on-order, staged or stored, shipping or standing, managing inventory can be complicated.

Some inventory problems may be easy to identify but there are so many other issues that may be more difficult to track down.

4-rules-of-thumb

The challenges of inventory management are too numerous to count, but these four rules of thumb can help reduce much of the frustration for small businesses and midsize companies alike.

Rule 1: Get real-time inventory status information

To manage your inventory well, you have to know where each item is and what its status is. When you don’t have up-to-date information on product stock you will end up increasing your costs. It costs more when you are rushing the shipment of items in, overstocking products, transferring stock from the location that really has the product to the location that thought they had it, increasing losses due to spoilage or losing productivity by not getting materials to the site when the workers need it. Shipping, overtime labor and other related costs go up simply due to not knowing the status of every item, and customer satisfaction and loyalty goes down.

Getting real-time information on inventoried items requires that item status be tracked throughout the inventory lifecycle. From purchasing to sales, inventory item and stock tracking will allow you to more effectively manage your products and avoid the troubles and additional costs that come with not knowing whether you’ve got it or not. Centralize the information in a software system which has the functionality to support end-to-end inventory management functions and keep that information up to date as activities occur. This is the key to knowing exactly the status of your stuff.

Rule 2: Don’t rely on manual processes

Manual Processes are dumb, m’kay? Really, though, they’re inefficient and take a lot of time and generally result in too many errors. Spreadsheets are hard to manage and time-consuming to update, and manually updating anything makes it prone to errors. When information is managed through manual processes it makes collaboration and sharing of that information far more difficult, which often impedes the performance of those who rely on the data. Perhaps the worst thing about manual processes is that they do not lend themselves to analysis or history tracking, making it difficult to identify historic trends or areas of possible improvement. And manual processes just don’t scale well.

Using software to manage your inventory introduces not just efficiency, but provides the information required to make informed decisions about purchasing and stocking items. Inventory management software delivers a level of automation in recordkeeping for inventoried items that reduces errors and makes the data more useful. When the inventory management software is combined with barcodes and scanning, manual entry of data is further reduced which increases the accuracy even more while also stepping up productivity.

Rule 3: Everyone should get access to the information they need to perform their work

Workers throughout the business need information to perform their jobs, but not every worker needs the same information. Buyers may focus on which products are in demand so they can negotiate the best deal with a supplier, but finance likes to see that purchased stock isn’t languishing in warehouses or on store shelves. While all users may work with the same product inventory, not all users should be able to view or change data that is outside of the scope of their work. A change made inadvertently by one user could become a costly issue to track down and correct.

Getting access to the information necessary to perform the work is a challenge when the systems or software aren’t geared to fully support all the business processes. On the other hand, workers shouldn’t have access to information outside of their area or which is not relevant to their jobs. The key is in providing the right functionality and information for each worker, enabling them to perform their tasks efficiently but not exposing them to other information or processes that may complicate or interfere, or simply take focus away from the task at hand.

Another aspect of information access is making the solution available to workers regardless of where they work from. Warehouse locations and sales offices or retail stores are often separate, so any central system should also address remote office or mobile worker access. Cloud deployment of desktop and network software solutions enables anytime/anywhere access and allows remote offices and warehouse locations to work seamlessly together.

Rule 4: Just know that you can’t scale a manual inventory system

Keeping track of inventory may be do-able when there are just a few items and a single location, but increasing the numbers turns manual inventory unmanageable. More items mean a greater likelihood that products will be missed or miscounted, and more locations increases the complexities of stock management and logistics. Without detailed item and location tracking a business won’t be able to recognize costs or losses per location. The business is more likely to lose or misdirect product, in part because issues with missing product due to worker theft are more difficult to identify because of the manual system.

Scaling a business needs the support of good software and systems to ensure that productivity and performance aren’t stifled even as business requirements expand. Manual systems or low-tech approaches to managing products and inventory may seem usable when there are few products and limited sales activity, but when the activity and volume cranks up, so does the need for a robust system that can keep up. With more orders, products, locations and workers involved a business also increases the chances for loss due to logistical issues, theft or purchasing mismanagement.

Among the considerations when implementing an inventory management solution should be the ability of the system to adjust to changing business needs through customization of processes or by integration with other solutions which extend and expand functionality. Additionally, training workers to use the software should be straightforward and not unnecessarily complicated by other unrelated processes, making it easier to expand use of the solution in the business.

How do you set yourself up for successful inventory management?

Get better software. It isn’t as complicated as you might think and it is really important.

The expense is worth it because the business will end up being more efficient, which drives profitability. The challenge is that there are many software products to choose from and they all seem big and expensive. Inventory management and stock control isn’t a simple endeavor, but the right solution will deliver business benefit quickly rather than requiring extensive training and complicated configuration that eliminates a near-term return.

Connect with us to find the inventory management and control solutions that meet the needs of growing businesses like yours. Our team understands the intricacies of single- and multi-location inventory management, just in time inventory and purchasing for stock, and we also know that small businesses can’t be overburdened by their software else there is no business benefit.

jmbunnyfeet

Make Sense?
J

 

cropped-logo_mc_w_short-1Cooper Mann works closely with the experts at Mendelson Consulting, the best in QuickBooks inventory management implementation.
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Contrary to What You Learned in Grade School… Sharing is Bad, Okay?

There is a place and time for sharing. Share your color crayons, share your toys… share your feelings with those you love. But when it comes to business technology and infrastructure, sharing isn’t always the best approach. Some things you should just keep for yourself… like the servers you use for hosting business desktops, desktop applications and business data.

When we first began the journey of bringing small business desktops and applications like QuickBooks to the Internet, the “cloud” was not yet a thing. Hosting providers put up servers in racks in data centers, installed software and stored data on behalf of customers, and did their best to find ways of making the service affordable. Elastic resources, massive scalability and built-in redundancy (which are benefits of a real cloud fabric) were not generally available nor were they even remotely affordable. Because the hardware, networking and other resources that make up the hosting infrastructure is costly, it is important for the hosting service provider to be able to spread those costs across the entire customer base.

In most cases, this meant creating shared servers where many customers run their applications and store their data. Even when a provider suggests that a customer has a “private” server, there is still a good chance the server is using shared storage and/or networking resources made accessible in the environment.

Sharing can be a good thing or a bad thing, and it often depends on the behavior of those involved. In shared application hosting environments, particularly desktop hosting environments, there is a lot of potential for intentionally and unintentionally causing problems that can and will impact other users and customers on the platform.

A simple provisioning error might allow a user to see data belonging to another company or have access to applications or services they should not.

With shared resources, bad actors and intruders can often escape permission boundaries, attaching to network shares and other computers on the platform.

Malware accidentally introduced by an innocent user from one company could easily penetrate the entire system, following paths to data storage locations and other servers, spreading the problem to many customers and systems and even data centers.

If you are operating on the compromised system you are at risk, even if the compromise wasn’t initiated by one of  your users or from within one of your applications.

In the realm of QuickBooks hosting providers, the issues around sharing infrastructure and resources have created some very difficult situations for hosts and for their customers alike – especially when it comes to dealing with computer viruses, malware and ransomware. A few high-profile events, as well as numerous incidents which have flown under the radar, have revealed just how damaging the shared approach can be.

With the IRS, AICPA and other agencies issuing increasingly strong guidance for tax and accounting professionals to protect client information, finance professionals should strongly consider the risk introduced through shared hosting service arrangements and evaluate if it is greater than the costs of having a more private system.

Cloud platforms available today are fully matured, delivering scalability and agility at price levels that are affordable even for very small businesses.  No longer solely for enterprise enjoyment, real cloud solutions and delivery models can be used by small businesses for desktop and application hosting without compromise. Every business deserves their own cloud, and we know how to make that affordable.

Cooper Mann works with teams deploying on the Microsoft Azure platform, offering an agility in design not previously available with legacy computing approaches. Because every delivery is absolutely private to each customer, the solution can be scaled up (or down!) on demand to suit the specific needs of the individual business. More important is the fact that each customer operates separately, so any bad behavior the system may suffer from is their own.

jmbunnyfeetMake Sense?

J

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Cloud Hosting Benefits for Business Owners and Their Accountants

Two-TallThe concept of running applications in the cloud is not at all new.  In fact, there are literally millions of business users accessing hosted applications and cloud app services every day, and adoption didn’t reach those numbers overnight. While the value of running software such as QuickBooks in a cloud model may differ from business to business but the underlying benefits are there for all to achieve.

The main value for some business owners is in being able to access information and data while traveling out of the office or when working from home.  Using almost any portable computer or mobile device, business users are able to get information on customers, orders, payments, and other valuable data regardless of the work location.  Being able to keep tabs on the business even when they aren’t there is very important to some business owners and secure remote access has become essential for today’s mobile workforce.

Where mobility motivates some to move to the cloud, collaboration is what drives others. For public accountants and small business bookkeepers this benefit becomes essential to effectively delivering services to clients. Because small businesses and the professionals that serve them do not operate in the same locations, the ability to work in the same software and data at the same or different times allows business owners and their accountants and bookkeepers to work seamlessly together in support of the business.  Business owners benefit from better financial data in real-time, and the accounting professionals are able to deliver results without time-consuming travel and doing the work on-site.

Business owners and the accounting professionals supporting them end up realizing the benefits of improved IT, where greater predictability in performance and cost matters. Businesses need to focus on their business and not on the IT which supports it, and outsource professionals such as accountants and bookkeepers need to be able to work with clients efficiently and without having to invest in expensive tools and services to make it happen.

When a cloud platform is deployed for the client business it can not only deliver benefits to the business owners and operation. A cloud-based approach can also provide tangible benefits in worker efficiency and productivity through improved access to information for the professionals who support the business.

Businesses need technology to support their operations, and the requirement generally spans far beyond pure accounting and finance. Unfortunately, many outsource bookkeeping and accounting professionals focus only on the accounting or financial systems when considering a cloud-based implementation, failing to consider the critical aspects of the operational level applications which support the various functions of the business.

This is often where a cloud hosting approach meets business needs better than a single cloud app. With a cloud hosting model, the existing business software and data can be “enabled” to allow accounting professionals access to the complete realm of business data, putting them in a far better position to ensure that the information resulting in the accounting system is of high quality and may be trusted.

jmbunnyfeetMake Sense?

J

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Next Generation Accountants and Businesses

Understanding the value and application of information technology is the cornerstone of building a successful “next generation” accounting or consulting practice. Professionals are finding that new opportunities to engage with new and existing clients comes from closer involvement with client financial and operational systems. Collecting and analyzing data, integrating applications and automating data exchanges, and leveraging cloud platforms and services is rapidly becoming the next level of “standardized” service offered by many professionals.

The pace of change is increasing, which makes it increasingly important for business owners to wisely select their technology partners and solutions. While many accounting professionals consider themselves to be the business owner’s trusted advisor, their clients often seek advice on increasing efficiency and reducing costs from software and IT consultants instead.

Yet conditions will change and could force the client business to make adjustments that impact the applications and services supporting the operation. Do the solutions in place have the agility necessary to meet changing business needs, being adaptable enough to meet new conditions or orientations? This is where accounting professionals can help their business clients make the right choices to address current and potential future needs.

Even as information management paradigms continue to shift, accounting professionals can help their business clients achieve better business performance and profitability through innovating workflows and increasing process efficiency. Whether or not the existing systems lend themselves to these efforts remains the question, and represents an area where the professional could provide great value.

Accounting professionals should look at services they can provide to clients that have direct and meaningful impact on operational efficiency and resultant profitability.  These areas represent not simply cost and efficiency improvements, but speak to quality of service and sustainability as well, creating better and repeatable outcomes that can support the operation even as operating conditions may change.

Improving data collection and analysis provides the foundation for understanding more about the operation, and delivers the insight required to identify areas where performance might be improved and then to prove the outcome.

Automating data exchanges and imports, eliminating redundant entry and the potential for manual errors, establishes structure in processes which can then be streamlined to deliver consistent and predictable results.

Utilizing cloud platforms and services allows the business to utilize the infrastructure required to support operations while providing a level of affordable scalability that doesn’t push the business beyond its reasonable boundaries.

What this discussion touches on is the subject of digital transformation and what that really means for small businesses and the accounting professionals who support them.

Rather than performing the accounting and financial work as after-the-fact participants, accounting professionals should help their business clients take a new view of processes and activities performed throughout the business, identifying areas where new approaches can be applied to increase efficiency as well as agility, developing a stronger foundation for growth and profitability. 

From the adoption of paperless and electronic workflows to merging social media with marketing and support activities, digital transformation represents an ongoing effort within a business to fundamentally shift from manual processes to electronic exchange, and expanding considerations beyond physical boundaries to include the virtual, as well.

All of this represents new opportunity and enhanced value for the accounting professionals ready to help their clients become “next generation” businesses.

Make Sense?

J

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4 Rules of Thumb for Better Mobile Device Security

Security threats are everywhere, lurking in alley ways and around corners and even in your favorite coffee shop. Yet mobility is in demand, and people will use their smartphones and other mobile devices because it’s convenient, even if company policy suggests against it.

This is a big deal for IT and security professionals and CIOs, which is why it took a while for IT to recognize the need to address mobile device security rather than simply deny mobile device use. With data breaches, ransomware attacks, hacks and information leaks happening on an almost daily basis, businesses must find ways to protect their valuable applications and data from loss or misuse while at the same time enabling mobile device use.

The following 4 rules of thumb are not comprehensive but are four essential rules of thumb to help guide business owners in addressing mobility management and security within their organizations.

Rule 1: Make sure there are clear mobile device use policies and support them with ongoing administration and strict enforcement.

I can’t say enough about having good security and mobile device policies and keeping them modernized, relevant, and actually enforcing them. Too many businesses say they have a “security and use” policy in place, yet it is outdated and doesn’t reflect the actual tools or processes currently in use.  Even more frequently a business will develop a policy just to say it has one, but won’t actually train workers or enforce compliance.

Rule 2: Require and enforce strong passwords, manage access in real time, and force password changes with some frequency.

It is essential that all user access to applications or data be controlled at minimum by password-protected logins to the device and corporate resources coupled with periodic forced password changes. Users often prefer to not require passwords or other authentication for device access, but corporate policy should not only require them but also enforce their use.  Also, user access should be managed in real time, meaning that any aspect relating to access should be disabled or revoked immediately upon employee termination or reassignment. Too often these forgotten chores are relegated to after-the-fact IT administration, which allows users to access resources beyond their rightful boundaries.

Rule 3:  Do something to contain the applications and data on the device.

Whether the approach is with containers, cloud hosting, server-based computing or something else, it is really important to try to “contain” the applications and data accessed from the mobile device. Risk is created when users sync data directly to the device’s storage or install applications directly on the device to access corporate data. Password and other security measures prevent unauthorized access, but allowing applications, credentials or data to be stored directly on the mobile device allows those things to interact with other things on the device.  Containers, hosting and server-based computing models keep the applications and data within secured spaces, often not even storing essential items on the device but only accessing them via the device. This allows the business to provide users with the access and functionality they need to do their jobs, but also reduces the vulnerability of applications and information assets.

Rule 4: Keep device software up to date and download fewer apps.

Updating mobile device operating system versions and release levels is important to make sure the device has the most current security patches and threat protection.   Some mobile OSes even have capabilities which can help keep personal and work apps separated.  Limiting the number of apps users can download to their devices should also be considered. Users may randomly download and install applications to their devices with little regard for the quality or security of the app, and often accept terms of use without really reading them. Consumer apps from app stores may pose risks to data and the device, so IT should check regularly for problematic apps if the device is used to access the corporate network, applications or data.

Mobile and wireless are in demand

Just about every business has people who use their phones and tablets for some business use, and every one of those mobile devices and the apps running on them could open the door for a hacker, ransomware, data theft or compromise. While there are many benefits to be gained by enabling remote and mobile devices in the business workflow, unrestricted access only creates risk.

Keeping mobile devices secure for business use takes multiple approaches, as there is no single method or solution that works for every situation. Our 4 rules provide a basic foundation for business mobility management, offering a starting point for developing a more thorough and detailed plan.

Make sense?

J