How to simplify job cost accounting

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Job cost accounting can be an uphill struggle for many small- and medium-sized manufacturers. In the process of simply trying to determine how much a job will cost and what profit, if any, it will bring in, manufacturers may struggle to take stock of all the relevant materials and labor inputs associated with it.

The most common struggles with job cost accounting

Why is job costing so frequently difficult? Part of the answer lies in the specific tools that accountants normally use for this task:

  • Spreadsheets: Although Microsoft Excel remains an essential business tool for tracking projects, it is ill-suited for advanced workflows such as assembling and reconciling all of the specific job costs of a substantial manufacturing operation. It requires a high level of manual manipulation, which leads to delays, needless duplicates and errors.
  • QuickBooks: Many SMBs start off with QuickBooks but quickly outgrow it. QuickBooks was originally designed in the 1980s, prior to the emergence of the consumer internet. Its functionality and scalability are relatively limited, meaning that it is not the optimal choice for complex job costing at a growing company.
  • Disconnected systems for business management and job costing: These two tasks should be handled by the same piece of software, but they are often processed by separate systems. Business management software typically governs accounting, inventory and order processing, all of which are essential inputs in job costing.

On top of these difficulties, job costing is inherently a somewhat imprecise art, particularly when it comes to allocating overhead costs. Accountants may charge the variance of nondirect costs (i.e., ones that are not dependent on labor or materials) to the costs of goods sold or allocate it to works-in-progress and finished jobs based on the ending balances in their respective accounts.

Streamlining the job costing process with modern software

Modern job costing software provides comprehensive insight into labor allocations for each job. Moreover, it integrates multiple financial systems to reduce blind spots and improves overall auditability, which simplifies relationships with vendors, lenders and customers.

Spreadsheets are limited in their abilities to handle job cost accounting.Spreadsheets are limited in their abilities to handle job cost accounting.

Accent Software can provide the implementation guidance and technical support you need to get started with specific job cost accounting solutions such as Microsoft Dynamics NAV. Find out more about your options on our main Dynamics NAV page.

Overcoming common inventory management challenges

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Inventory management and cash flow go hand in hand. An efficient inventory system ensures that your business is responsive to fluctuations in demand as well as capable of diverting money to separate projects as needed. In other words, it needs to hit a sweet spot between costly oversupply and equally detrimental lack of goods to ship:

  • Excess inventory has long been recognized as a major drain on the bottom line. According to Industrial Supply Magazine, "excess and obsolete inventory" can cost its carrier 25 percent of the original value each year. (So $100,000 worth of items would yield a $25,000 charge from deterioration, storage, etc.) For this reason, many manufacturers have shifted to lean supply chains in which they keep as little inventory as possible (without compromising their abilities to deliver) on hand.
  • At the same time, not having enough inventory is obviously bad for business. A firm that cannot meet customer demand in a timely fashion is destined to lose sales to competitors and to struggle with its public image and reputation. Accurate demand forecasting is essential for building up sufficient inventory, yet even this task is a challenge due to the increasingly abbreviated life cycles of products in sectors such as discrete manufacturing.

So what is the solution to this delicate balancing act in inventory management? Software such as Microsoft Dynamics NAV is a good place to start. To see how inventory management systems can strike the right balance, let's review a few of the most common inventory management challenges they help overcome:

1. Inaccurate inventory records

What if your inventory numbers do not paint an accurate picture of what is actually in your warehouses? This situation is common, with a variety of possible causes, including lack of real-time visibility into what is being bought and sold throughout the day, as well as over-reliance on spreadsheets and other legacy accounting mechanisms.

A platform such as Microsoft Dynamics NAV gives you the ability to track assets by warehouse bins, inventory serial numbers and lot numbers. With the ability to see granular information about your inventory, it is easier to avoid major variances.

Inventory management is challenging without the right tools.Inventory management is challenging without the right tools.

2. Inventory surplus

As we noted earlier, excess inventory requires you to overpay for assets that you are not even using at the moment. It drives up holding costs, eats into profits and puts your entire cash flow at risk. 

The good news is that you can likely recalibrate your inventory levels if you have a solution that offers advanced features such as safety stock levels with alerts, full purchase and sales histories and simultaneous tracking of all costing methods.

3. Reliance on Microsoft Excel

Excel is a staple of the workplace, but it is widely overused for tasks that are far beyond its intended capabilities. Inventory management is one such activity. You do not want to wind up managing a vast set of inventory via manual manipulation of spreadsheet cells. A formula error alone could erase hundreds of hours of work.

For this reason, it is imperative to have modern software that is highly automated and easy to integrate with other systems of records. Microsoft Dynamics NAV is a prime candidate in this regard. Moreover, with the help of a Microsoft Partner Network member such as Accent Software, you can ensure that you have the right tools in place to align inventory management with cash flow. Learn more on our Dynamics NAV page to get started.

3 big requirements for an SMB ERP solution

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An enterprise resource planning system is like the "brain" of a small- or medium-sized organization: It serves as the central clearinghouse for accounting, budgeting, planning and many other custom operations. From the assembly line to the back office, an ERP solution helps shape what a manufacturer knows about itself (e.g., business intelligence, reporting, etc.) as well as how its different departments collaborate and communicate with each other.

However, SMBs face unique challenges in finding and sustaining ERP platforms that fit within their relatively limited budgets while still offering superior functionality to manual processes. Many outfits still rely on QuickBooks and Microsoft Excel to handle essential tasks, but at some point, their operational complexity and/or growth necessitate a search for a more efficient alternative – i.e., actual ERP software. But what should an ideal ERP system include?

It should, at a minimum, address these common stumbling blocks in SMB ERP implementation:

1. Visibility into processes

A Software Advice survey once revealed that 59 percent of SMBs pursue ERP systems because they need to integrate data from multiple business processes. This goal far outpaced even "company growth" (27 percent) as a primary rationale for upgrading from predominantly manual processes.

There are several keys for adequate visibility:

  • Real-time insight: Decision-makers should be able to drill down to information from all relevant processes as it comes in, allowing them to spot and address any inefficiencies right away.
  • Support for planning and forecasting: This real-time data is particularly useful for assessing past failures and successes, which can be analyzed to improve key procedures and make better forecasts about cash flow and margins.
  • Integration and customizability: The unique requirements of manufacturing require an ERP solution that can easily interface with other applications and be adjusted to incorporate custom processes.
What do SMBs need from ERP systems?What do SMBs need from ERP systems?

2. Affordability and ease of use

ERP systems have a reputation for being expensive and unwieldy to implement. A 2016 Panorama Consulting survey, with 26 percent of responses from companies with less than $25 million in annual revenue, found that 35 percent of respondents spent up to 3 percent of revenue on ERP implementations, while another 20 percent spent between 3 percent and 5 percent.

SMBs can reduce their exposure to these costs by avoiding custom in-house ERP systems and instead pursuing more accessible and broadly supported alternatives such as Microsoft Dynamics NAV. Options for on-premises or cloud setups give SMBs options for finding something that aligns with their respective budgets and priorities.

3. User training

Sometimes, the biggest challenge to ERP success is getting buy-in from end users who may initially balk at the design of the new system. After all, reliance on QuickBooks and Excel is often as much about familiarity as it is about cost.

Having a trusted partner that can provide ongoing training and support is therefore essential. Accent Software is a member of the Microsoft Partner Network, with more than 15 years of industry-specific experience. Learn more today about how we can help you get started on your ERP journey.

Use cloud ERP for better decision making

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The leaders of a manufacturing enterprise have to make important decisions every day in order to keep production on point. A robust, cloud-based ERP platform that's made for manufacturing can help ensure you have what you need in order to make the right moves. Manufacturing business software can provide you and your team with the real-time information they need to make the right decisions.

Cloud-based business management software can help your enterprise decision making in a number of ways:

Visibility over operations
In order to make the best decisions, you need to know what's going on. Cloud ERP gives managers full visibility over production, allowing you to make quick decisions whenever something arises. Any bottlenecks or inefficiencies in your workflows are easily identified, so they can be corrected. 

"Cloud ERP gives managers full visibility over production."

An end-to-end solution like cloud manufacturing ERP software allows for better operational decision making by providing all of the relevant information that's needed, whenever it's needed. And as a central platform for this information, the company-wide data integrity is improved as well. 

Real-time information for real-time answers
Business moves fast, and companies that can adapt quickly are the ones who will thrive. With a cloud ERP solution, your team is able to access the important data on their mobile devices, whether they're on the road or on the manufacturing floor. This allows for quick decision making, improved communication and business agility. 

If your enterprise is ready to take the next step, Accent Software can help! We work with growing companies to implement Microsoft Dynamics NAV, a flexible cloud ERP system that helps manufacturers operate efficiently and make quick decisions using real-time data. Our team has been helping small businesses implement this robust program for over 15 years. Contact us to learn more about this business management software and the many ways your team will be thankful for it.

Signs your legacy system isn’t cutting it

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The manufacturing industry is changing rapidly, and modern business management software can help enterprises keep a competitive edge. However, many businesses in the manufacturing sector are still relying on their old legacy systems, despite the fact that there are much more effective options available. How can you tell if your legacy system is holding you back? Check out these telltale signs. 

Lack of functionality
Simply put, can your legacy system do what you want it to do? Your old software may not allow for collaboration or mobile use, which are two things that are very important for today's manufacturers. That means your team is stuck with an older workflow model, without the ability to modernize. How can you keep up with your competitors if they're using more sophisticated manufacturing software? 

No agility or flexibility
Many older systems are too rigid to adapt to the changing landscape of modern supply chains. If you legacy program is out of date, then it's very unlikely that your team is able to incorporate any new functionalities or services. A modern enterprise resource planning system can break you out of that rigid mold, and allow for the flexibility that will give you an edge. 

"Modern ERP solutions are much more flexible."

Out of date hardware
If you're hosting your legacy software in-house, it's likely that new hardware no longer supports it. That means you're spending extra time and money dealing with out-of-date equipment just to keep it running. Modern ERP solutions are much more flexible in this regard. You can go with a cloud-based option, and free your business from hosting responsibilities. Cloud ERP is a great option for growing manufacturers because it's more scalable, letting these companies focus on their work while the cloud hosting company manages the hardware. 

No support
Does your legacy vendor no longer work on your old system? Does that vendor even exist anymore? Legacy systems often have no support, meaning when you have a problem there's no one to help you work through it. With modern ERP business management software, you get consulting and support every step of the way, from implementation through post-go live support. 

If any of the above sounds familiar, there's still hope! A manufacturing ERP software solution such as Microsoft Dynamics NAV is built for today's manufacturing enterprise. As a modern ERP, Dynamics NAV works for you, allowing you to adopt the modules your business needs and customize them for manufacturing software that fits your business like a glove. 

To learn more about how Dynamics NAV can work for your team, contact Accent Software. 

Your guide to a smooth ERP implementation

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Implementing a new enterprise resource planning system can be daunting. There are a lot of moving parts and considerations to evaluate before taking the first big steps. Following these guidelines will ensure that you're on your way to enjoying your company's newfound agility and efficiency. 

Define your goals so you can track success
In a recent ZDNet article, Michael Krigsman wrote that "success is elusive when the desired outcomes are vague and ill-defined." It's important to set measurable goals to judge the level of success. Where do you need manufacturing software to help? Are you looking to reduce overhead, streamline production processes or develop more effective reporting tools? 

If you can't put into words what you'd like to accomplish with your implementation, it's going to be difficult to get anything done. Your value added reseller can help walk you through an action plan, help you define business objectives and goals and provide demonstrations on how ERP software can help you achieve them. 

"A vendor that understands ERP software can make sure your team is prepared."

Train your team, and train them some more
ERP software is all about agility. You will have access to unprecedented amounts of data all in one centralized hub, and you will be able to act on market fluctuations and new opportunities faster than ever. In order to take advantage of these tools, your team needs a strong training program.

As ERP business management software is always adapting new functionalities, it's important to have ongoing training so your users are always on top of the latest trends. It's also important to have a strong training program in place for new hires. A vendor that understands the ins and outs of the ERP software can make sure your team is prepared with comprehensive training. 

Find a vendor who understands your industry
Manufacturers need a manufacturing-focused ERP solution and a value added reseller that knows what enterprises in the industry deal with on a daily basis. The right vendor can help you throughout the process by:

  • Implementing your new ERP software. 
  • Troubleshooting and providing support. 
  • Customizing the software to fit your needs. 
  • Ongoing consultation, training and troubleshooting post-implementation. 

If you're in the manufacturing industry and you'd like an ERP that can provide customizable tools for your enterprise, Accent Software is here for you. The Accent Software team has been helping growing manufacturers deploy and use Microsoft Dynamics NAV for over 15 years. We provide ongoing training, technical support and consulting services, putting this robust manufacturing business software to work for our clients. 

Is your legacy system customizable?

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Customization is often one of the most overlooked benefits of enterprise resource planning software Legacy systems are often designed for outdated platforms and no longer work for modern manufacturers. Instead of trying to fit your workflow into a pre-designed system, with customization you can make the system work for your business.

When you're shopping for a new business management software system, you may not find one that meets all of your needs right away. As your business grows, expands and develops new products in new markets, you may need more functionality. A customizable ERP platform makes this possible. With the right software and a dedicated vendor, you can add whatever you need. 

Why customize?
You may not need a customizable ERP solution right away, but it's good to have the option as your business grows. Customization can make your implementation go smoother, especially if you're moving on from a legacy system. In the meantime, it may be hard to find a system that does everything you need right out of the box, but a customizable one will be able to do whatever you want with the support of your ERP vendor. 

"Microsoft Dynamics NAV is built to be customized."

Decide what you're going to need
There's no sense in putting down money for ERP software before you know the most important functions you're going to need from it. Document your requirements to give you an idea of what services to look for in your new system. Different types of ERP software can offer different suites of tools and functions. Consider your workflow, your bottlenecks and your pain points. This is a good time to consult with an external professional, who can take a different view of your enterprise. 

Choosing your ERP software
Not all ERP software provides customization. Microsoft Dynamics NAV, in addition to being ideal for small to medium-sized manufacturers, is also built to be adapted and customized as necessary. A dedicated vendor can help you implement Dynamics NAV to the fullest and get the most out of this powerful system. 

Choosing your value added reseller 
Your ERP vendor plays a major role in what you get out of business management software. A vendor that understands the software will be able to demonstrate its capabilities and create new projects to adapt it to your needs. Without a knowledgeable, helpful vendor, you won't be able to make ERP customization work for you. 

At Accent Software, we understand the importance of customizable manufacturing software software for growing manufacturers. That's why we help businesses implement Microsoft Dynamics NAV, a robust and customizable business management software solution. If your legacy system isn't cutting it, contact us to see the difference a modern ERP system can make. 

Your roadmap for ERP implementation

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Implementing new business management software is going to change your company significantly. The changes will all be for the better, but it's still important to plan accordingly. Without a solid roadmap for implementation, you could have difficulties getting buy-in and ensuring you get all the tools you need. It's a complex process that encompasses every part of the company, so it's important that the implementation is managed well.

Consider your industry-specific needs
ERP software can be customized to meet the unique needs of every market. When you're planning your implementation, remember the modules and tools that you'll need in order to improve efficiency across the company. We recommend Microsoft Dynamics NAV software for manufacturing companies, but other industries have solutions that are tailored to their needs. 

Review your plan with stakeholders
Financial stakeholders are going to have a lot of questions about this new manufacturing business software. First, they're going to want to know what it costs. They're also going to want to know how disruptive it's going to be in the short term, and how long the implementation will take. Most importantly, they're going to want to know the financial and strategic benefits. Highlighting all of these points will help you get executive buy-in. 

"ERP software can be customized to meet the unique needs of every market."

Establish a cross-functional team to oversee implementation
Your new business management software will affect every department, so you're going to need to understand where each group is coming from. A cross-functional team will help keep the implementation on point and ensure a smooth process. Accounting, production, human resources, sales and every other department deserves representation. By getting a point of view from every area in the business, you will have an ERP system that serves everyone's needs. 

One module at a time versus all at once
Modern ERP software is made up of different modules that serve different business processes. Depending on your needs, you may not require every module, and you can continue to add more as you need them. In order to help usher in a smooth transition process, it's best to implement the system one module at a time. Focus on the most important modules for your needs, and add from there. Implementing all at once could overwhelm your staff and create too much uncertainty. 

Always be training
A robust system like ERP is always changing and adapting to changing business environments. As new features emerge and more employees join your team, maintain a training schedule to ensure that users are up-to-date on everything that's available. 

When implementing new software like ERP, it's best to seek help from the experts. At Accent Software, we've been helping growing businesses streamline processes and boost efficiency with Microsoft Dynamics NAV. We can help your team implement Dynamics NAV and follow up with training and consulting wherever they're needed. 

Business management software for process manufacturing

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Process manufacturing is the production of goods in bulk quantities, such as chemicals, paints, food and beverages. These goods are not individually countable. This is opposed to discrete manufacturing, which involves the production of countable goods such as machine parts, cars or electronics.

Goods manufactured through process manufacturing usually can't easily be broken down into smaller components like their discrete counterparts. Process manufacturing's characteristics give it some unique requirements in a business management software solution. It takes more than just any run of the mill inventory management system to handle process goods effectively. 

Units of measurement
As materials developed through process manufacturing are not easily broken down, the ERP system needs to be able to adapt to more flexible units of measurements. Powders and liquids require decimals places in transactions, as well as a wide range or units of measurement.

To meet regulations from organizations like the Food and Drug Administration, every single drop or grain needs to be recorded and measured. That means the ERP software needs to be up to the task of working with very small units of measurement. 

"Every single drop or grain needs to be recorded and measured."

Quality testing
Process manufacturing ERP needs to be able to record the results of the many rigorous tests that goods go through before they're shipped off to clients. An ERP system needs to have its own module for quality standards and test results. This is especially crucial for food and drug materials. 

Special characteristics
In addition to units of measurement, some materials may also have special characteristics that more traditional ERP software may not track. Characteristics such as strength and potency, shelf life or expiration date and quality monitoring for regulatory requirements need to be identified. 

An ability to trace goods
Whether its food products or pharmaceuticals, goods produced through process manufacturing usually have to be tracked after they're shipped to clients. These requirements are usually connected with their environment, their specific batch, or their test results. Tracing process goods requires flexibility and customization in an ERP solution. 

Microsoft Dynamics NAV is not just your run of the mill business management software. It's the ideal tool for process manufacturing, giving the user unprecedented ability to streamline workflow and track goods. Dynamic NAV's customization helps enterprises adapt to the unusual requirements for process goods. That's why at Accent Software, we help growing businesses learn and implement this software. We understand the importance of smart software for manufacturing to boost productivity and foster innovation. If your legacy system isn't cutting it, contact us to see the difference a modern business management software solution can make. 

How does manufacturing ERP software strengthen company culture?

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Enterprise resource planning can bring many changes to a business, such as increased efficiency, improved inventory management and clearer cross-functional communications. What many people may not realize is that ERP software can also improve company culture.

While culture can be difficult to define, it plays a major role in how well your enterprise runs. A strong company culture can lead to happier, more productive employees. Many of the issues with legacy software, such as poor communication, inefficient processes and general disorganization can hurt company culture, but the improvements that come with the right business management software can reverse these effects. 

New roles and responsibilities
Many employees will be facing new challenges and opportunities when business management software is implemented. Everyone's role will change in some way or another, but there will be some users who feel like they have totally different jobs. It's important to make sure that everyone understands the changes going forward. Not only how it's going to change their jobs day in and day out, but how it's going to improve functions throughout the company. 

"It's important that everyone understands the changes going forward."

Training and education
Rick Cook of Inside ERP said, "Train for the changes, not just the software." It's gong to take more than just a few training sessions to get everyone on board with the changes. Ongoing training programs will keep your team up-to-date with all of the changes, as ERP software like Microsoft Dynamics NAV is always evolving. Use real-life scenarios so the team can see how these new standards and tools will apply to their everyday roles. Properly trained employees will embrace these changes, because they'll see the value this new software brings. 

Automation
ERP software helps to automate the redundant, time-consuming tasks that can frustrate many workers. By completing these tasks automatically, the ERP system frees your team up for more valuable and rewarding work. Your team will feel more fulfilled from spending more time helping customers and performing other high-value tasks. 

Change management
Seeing leaders getting on board with the new business management software solutions will help establish the importance of the new ERP system. Nominating change agents throughout the company as "super users" can help demonstrate the many benefits this software will bring. 

When everyone in your organization buys into this new and improved manufacturing business software, your company culture will be thriving with team members who are excited to be part of a cutting edge operation. 

At Accent Software, we can help you create a training plan to develop your users into experts, so you can be well on your way to enjoying the many ERP benefits. We're proud Microsoft business software partners, and we help growing businesses use Microsoft Dynamics NAV for their business management software solutions. Contact us to learn more about the many ways we can help.