Tag: quickbooks integration

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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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QuickBooks Point of Sale and Hosting

QuickBooks Point of Sale in a Hosted Environment

Retail operators and multi-location store owners often face difficulties in attempting to bring cohesion to their accounting, financial, and operational data.  In so many situations, the retail location –  where inventory is sold and money is exchanged – is far-removed from the administrative location where the financial systems and business reporting exist.  It seems that the best case scenario is to create a means for the remote (retail) locations to operate with real-time access to centralized customer, inventory, and financial data from a primary source. Application hosting services can provide this centralization,  and a platform for standardization, of systems.  Further, the application hosting model can deliver security and managed service which ensures that the systems are available and performing as required.

Even though hosted applications and centralization of the systems and processes in a POS environment may appear to be the right answer, there are caveats and considerations that speak to the realities of today’s technologies.  These caveats should be strongly considered prior to undertaking any reformation of systems and processes relating to the retail locations.

The first fundamental reality which must be addressed is connectivity.

While a retail or store location may enjoy Internet or network connectivity, there should be great consideration given to the wisdom of connecting these locations only and exclusively via remote access systems.

Retail is a dynamic business, and the sale is made when the customer is ready and willing to buy.  Any retail location must be able to process this sale in order to meet the immediacy of customer demand.

 

If the systems in use are exclusively accessed remotely, then the connectivity to those systems become of paramount importance in the ability to do business.  At the very minimum, any remotely-served retail location should have redundant connectivity options, with local personnel being familiar with the connection failover process.

A second strong consideration for a hosted or remotely-deployed POS or retail system is local device support.

Devices, such as card readers, scanners, cash drawers, receipt printers, etc. typically require local PC/computer drivers in order to function.  When served by a remote system, this connection between the host and the local devices may not function.  Limited device support for POS hardware can significantly impact the location’s accuracy and efficiency.

QuickBooks POS was designed for use on a single-user PC environment.  The application is not well-suited to a hosted deployment for multiple users, as the software only allows one instance of itself to run on each computer.  This alone eliminates the benefits of a server-based computing model for POS, whether onsite or hosted. The multi-lane option requires all stores to be connected via the same LAN, so remotely connecting multiple locations isn’t really do-able, either.  This is why there is a multi-store option, allowing the various stores to operate independently and send the daily data back to a master location via a store transfer or email process.

In many cases, the suitable answer is to keep the POS systems running on the local computers and network, and run the accounting applications on the host. The host system, whether it be an on-premises server or a location in the cloud, could also run the software which integrates the POS data with accounting.

integratedFor example, with an installation of QuickBooks accounting the point-of-sale “master location” on the host, the core financial data is able to be secured and protected in the virtual environment without risking lost productivity (and lost sales!) due to connectivity failures at the retail locations.  The end-of-day process at each location is to then copy the POS data to the host system where it is integrated with the accounting system. If the POS system is something other than QuickBooks POS, it simply means that there is another piece of software – the specific POS integration tool – required to transfer the POS data into the accounting software.  QuickBooks desktop accounting integrations are available for most popular POS systems including Micros, POSiTouch, Aloha and others. The integration software (often just a QuickBooks plug-in) would be installed on the computer running QuickBooks, enabling the entry of the POS data into the QuickBooks accounting system.

It makes a ton of sense to centrally manage the accounting and financial data for the business, in a secure location away from the retail storefront and frontline workers.  It’s just that the accounting is easier to host and makes more sense to run as a centrally-managed, hosted solution.  POS, on the other hand?  Not so much.

For a small market vendor or the largest of retail stores, point of sale needs to be up and running at all times, driving receipt printers and cash registers/drawers and barcode scanners. Run the POS system on-premises where the action happens, but keep accounting and finance safe and secure somewhere else.

jmbunnyfeetMake Sense?

J