Selecting the right ERP system for your business does not have to be a complicated process, but you should consider the pros and cons of each option for your business – onsite or cloud-based? There is rarely only one solution for every business, and it does help to discuss the specifics of your situation and your goals with a professional ERP specialist (for current clients, or if you’re a new customer email sales@horizonbiz.com.au).
A cloud-based ERP system can only be accessed online, and requires little maintenance – which is usually included in your monthly cost but its efficiency is dependant on the speed and costs of your company’s internet provider. An onsite ERP is one that your business hosts on a server on the premises, and maintenance is up to you and your IT team.
When you’re choosing between an onsite ERP or a cloud-based one, there are several factors you’ll need to keep in mind. Remember that the right system for you will work with your business as it grows.
Generally, for an onsite ERP, you’ll have a high investment cost in addition to maintenance and upgrade costs, while a cloud based ERP requires a monthly subscription based on a package that you choose. However, you will need be dependant on factors such as internet speed for repetitive processes. For example, inputting invoices.
With an onsite ERP, you are responsible for the cost of the server and hardware, maintenance, the software, IT personnel to maintain both hardware and software, and more. However, this investment does become more cost effective in time with most large systems paying for themselves within a two to three year period. Also, the speed of your server will, for the foreseeable future, outpace your internet processing speed. This is particularly important if the majority of your business accounting activities take place onsite. You will also need to consider what other software applications you use in your day-to-day business. It is easier to ‘bolt on’ products to an onsite ERP system plus if you use other industry specific software (for example CAD) that needs a server anyway, the costs of maintaining a server will still exist.
If you choose a cloud based ERP, your regular ongoing costs may be higher, but the monthly subscription rate will include the cost of maintenance, hardware, software, and whatever the plan you choose includes. One of the major benefits of Cloud is the access to information from anywhere – great for your on the road Sales Team, work from home staff or Directors.
When you host an onsite ERP, you are responsible for your own maintenance, including having an IT team to update software, install new hardware, and ensure that the settings are appropriate for your business. Both onsite and Cloud systems will need access to a dedicated team that understands how to configure the system to your needs.
As part of your monthly subscription for a cloud based ERP, upgrades and software updates should be taken care of for you. Your service provider should ensure that your business always has the newest version, and that the settings are customised to your business needs.
New versions for onsite ERP systems may require assistance by Support or a consultant – which is great if you have access to a local team.
All updates (think of Apple!) tend to come with fixes and potentially their own issues. This is less of an issue when an onsite ERP where versions can be ‘tweaked’ without having to wait for an online fix/update.
As part of their service, cloud based ERP systems are usually as fast as your plan provides, and they are made available at all possible times. Generally, this should include a backup plan included for natural disasters, updates and upgrades, and any downtown will be scheduled at a natural low traffic time.
Maintaining your own onsite ERP system means that your own IT personnel will manage speed and availability of your system. In order to fully protect against natural disasters, you will likely need two separate servers with matching data in two different locations. As your hardware gets older, upgrades will be necessary to maintain the speed you want.
Whether you choose to host your own ERP or use a cloud based one may depend on the system you are already using. For example, if you don’t have a server, or a place to house one, a cloud based ERP might be more feasible. Do you have the IT team to maintain an onsite ERP? Choosing a cloud based one may make their jobs unnecessary.
Consider each of the items in this list based on the current size of your business, and the rate at which you’re growing. The investment required to house your own ERP system may or may not be worth it, depending on your business.
Your accounting system effectively documents all the activity in your business and provides critical information to make good business decisions. If you’ve outgrown your accounting system and you’re moving to a new and improved model (like MYOB Exo!), it’s absolutely necessary that the transition is as seamless as possible so no information falls through the cracks.
To successfully transition to a new accounting system, you need to consider these factors:
CHANGE MANAGEMENT
A smooth transition starts with preparing your staff for change and guiding them through the process. First, communicate why your firm is moving to a new accounting software system. While the transition might require a lot of work on behalf of some key staff members, explain that your business will benefit from the new system in the long run.
Once you’ve explained why you’re making the transition, train your staff to implement the change. Schedule some time and verify that your current accounting procedures are documented. Work with your software provider to create a plan of conversion. Ensure that all stakeholders (accounting and finance staff, operations, senior management and even sales if your accounting system is linked to your inventory or job costing functions) are involved in planning the conversion.
UNDERSTANDING YOUR UNIQUE BUSINESS
Your company has processes that are unique to its particular industry. A retailer, for example, accounts for inventory. On the other hand, a manufacturer must account for raw materials and work in progress. You need to consider your unique business processes and how they link to your accounting structure in order to implement a smooth software conversion.
TEST YOUR NEW SYSTEM
Ideally you should have a transition period in order to test the new system is tracking data in the same way as the old system and avoid missing anything out. Run a set of transactions concurrently through your current and new system and review the results to ensure they are accurate.
Consider a denim jeans manufacturer for example. They decide to run transactions through their new system, at the same time, they process data through their existing (live) system. If their new software is operating properly, they should get the same accounting results as their current system produces. In this case, that means that the same dollar amount of denim is moved into production using both accounting systems. Both programs also post the same number of units, the same sales intake, same profit figure etc.
A FINAL SET OF TRANSACTIONS
Before you implement your new system, generate a set of adjusted financial statements at the end of a particular period. That “clean” set of financials will be your starting point for a new system. At the end of October, for example, you print a trial balance and post your accounting adjustments. Once you’re satisfied with your adjusted trial balance, you generate October financial statements (balance sheet, income statement, etc.).
GOING LIVE
Say you decide to go live with your new accounting software on November 1st. You’ve communicated the November conversion data to your staff. Each person in the organisation has provided his or her input on the implementation process. Your staff has a new operations manual and has trained on the new software.
At various points after software implementation, you analyse the results that are generated by the new software. You use your October 31st accounting data to ensure that November accounting activity is posted correctly.
These tips can help you have a smooth transition to your new accounting system.
WORK WITH AN EXPERT
Consider working with an accounting software expert to help you with the implementation process. We are available to talk through your particular situation with you and provide advice to help make your software switchover seamless. Contact us at (08) 9328 1678 or via our contact form and we’ll get in touch!
As a business owner, two of your main goals will be to improve communication with your customers and to streamline your business practices. If you want to succeed in business, then you need to be able to contact your customers quickly and effectively, while at the same time making your business more efficient.
Luckily, there is a new technology that helps you to do both. Its name? Mobile customer relationships management software – or mobile CRM for short.
Mobile CRM takes advantage of the fact that clients are now on smartphones or tables, and wish to communicate quickly immediately with suppliers – they want to know the status of their order or your stock levels there and then – mid-meeting, not once you’ve travelled back to the office to check it out.
If you’re looking to grow your business or to improve your customer communications, then you need to consider mobile CRM, and here’s why:
Increase your revenue quickly
As a first benefit, you can quickly increase your revenue and bottom line. With mobile CRM you can give customers the answers they require quickly – finalise projects and deals before you even leave a meeting.
You can access the information straight away, rather than waiting to get back to the office. The faster you can communicate with customers, the faster deals get done. Simple!
Faster response times for clients
Fast response times to clients equals good customer service. Mobile CRM means that no matter where you are or what you’re doing, you can respond to a client. What’s more you can also solve urgent or important matters instantly.
Clients don’t like waiting for you to get back to them. If they have a problem and you don’t respond, it’s often not long before they consider taking their business elsewhere.
Don’t lose clients because of avoidable delays. Embrace mobile CRM and start providing outstanding customer services that your clients will rave about.
Stronger relationships with clients
Fast response times by themselves are not enough if you don’t have the right answers. When you respond you need to have all relevant information about the client at your fingertips. This way you can go into detail about their account, and also discuss current issues or projects that they have.
It’s customer service 101 – when you provide these two elements together you show your customers that you care about their business – you’re up-to-speed on their account and your business processes are tight and controlled.
Mobile CRM allows you to do this by giving you quick access to your client’s full account history right there on your mobile or tablet app! You could be at a trade fair in Perth CBD and your colleague could be on the road making a sales visit in Bunbury. No matter where they are, all staff will have access to customer account info.
Improved organisational skills
The beauty of mobile CRM is that you don’t actually have to be that organised to use it!
Not only does it help your clients via excellent customer service, it also helps you run your company, and improve and integrate your procedures.
Mobile CRM options – such as our mobile CRM plugin for MYOB Business Process Software – allow you to integrate your existing accounting practices and business practices with mobile CRM.
If you have staff in multiple offices or staff out in the field they can undertake their accounting, stocks and ordering while on the road. This improves effectiveness and efficiency of your business dramatically.
Improves your sales force effectiveness
If you have sales managers who are constantly on the road, you can see amazing benefits from mobile CRM.
Rather than coming back into the office to process sales, they can do them automatically from location. This means faster processing times for clients, and more time for your sales staff to be out their making sales. Win-win!
In short, every business is constantly looking for ways to improve business practices, customer service, and increase sales. With mobile CRM you can do all three!
Contact us today, to learn more about what our mobile CRM solution – Exo-on-the-go – can do for your business.
The decision to change from manual accounting systems to an umbrella system depends on the same criteria that influence people to upgrade residential infrastructure: old systems are inefficient, cost-prohibitive, appear old-fashioned and need frequent troubleshooting.
Current systems and spread sheets work fine but manual accounting systems generate payroll expenses for office staff, increased accounting fees, inefficient inventory-ordering practices and lost opportunities to optimise leads, leverage social and business trends and uncover waste, theft and fraud.
Clues that you might benefit by replacing your existing system include:
Upgrading the accounting system helps you position your company for accelerated growth, meet the challenges of global marketing and integrate your business with the current financial practices of most vendors, clients, social agencies and tax authorities.
Before choosing a new system, consider the following points:
Your accounting solution will impact every department in the company, so choosing software solutions works better when you make it a group effort. Involving each department manager in the decision will help you find the best solution and encourage loyalty among employees, who often resist changes to systems that have always worked adequately in the past.
The new software should meet the following criteria:
Contact us to find out how MYOB EXO, MYOB Advanced and Horizon Business Systems can help your business achieve all of the above (and more!) today.
Too often we find businesses focus heavily on what their existing software does poorly but forget to review the good things.
For example your business has multiple stock locations and you have a need for this functionality as well as serial number tracking and barcoding. You find new software that does this well but later discover; after using it for several months, that it doesn’t allow for merging of stock codes, reversing transactions or changing codes. Your existing software did this very well, in fact, you took these features for granted and didn’t document them when assessing the new software program.
It’s important to list all of your business needs, in particular the quirky things you do, when you’re assessing new business software. Invite your entire team to put forward suggestions as to what would make their day easier, or more efficient. Ask them if they have a “wish list” of features, reports, processes that they would like the new software to achieve for them. Not only will you end up with the best program for your business, you’ll also find that your team will appreciate the change and be positive influencers in the critical first few months of using the new program.
Make a list and stick to it. Don’t be fooled by slick sales peoples banter, showing you features that look glossy but provide no intrinsic benefit to your business. If you have assessed a number of products and have ticks and crosses it will allow you to look at it objectively and make the right decision. Just as important as feature sets is the business partner behind the software, the people that install, train and support you. Make sure they’re local, have dedicated teams in consulting and support, and can provide you with good references. This can be the difference between a poor installation and a smooth one.
To find out more here’s a great article: Return on Investment
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