| Over the past two years, business articles and advice | | | | - Breakeven and margin analysis |
| have focused on the importance of managing cash | | | | - Cash flow forecasting |
| flow and monitoring costs. There's no denying that | | | | - HR Scheduling |
| business managers and owners need reliable and | | | | - Inventory and asset management |
| timely information to measure and improve the cash | | | | Those of you who recognise limitations in your own |
| cycle of their business. The industry in which you | | | | system may be thinking of investing in new accounting |
| operate will influence how this information is currently | | | | software or upgrading your existing package. This is a |
| collected and used. Some well established and | | | | big decision which may involve migrating to a new |
| successful businesses rely on their bank balance and | | | | system. It will take time and possibly training to get |
| observation of day to day trends to guide their | | | | your accounting system up to date. |
| decisions and actions. The nature of other sectors | | | | The Good News is - It may be possible to extend the |
| requires a more formal approach - monthly or weekly | | | | capabilities of your existing software using Business |
| management accounts. | | | | Intelligence (BI). Such business reporting and analysis |
| Many of you may use accounting software to record | | | | tools do not require data entry and do not alter your |
| transactions and run regular reports. If you have | | | | software or original records. BI software takes data |
| invested in software and administrative staff you can | | | | from your existing software (accounts /payroll /EPOS |
| be forgiven for being disappointed with the relevance | | | | manufacturing etc) and presents reports and charts in |
| of information at your disposal. One reason for this | | | | the format you require. This enables you to monitor the |
| gap in expectations is the fact that accounting | | | | business in real time (to the extent your systems are |
| software used by small and medium sized business | | | | kept up to date). |
| has changed little over the past 15 years. Today, the | | | | Conclusion |
| packages are more 'user friendly' and allow entry of | | | | BI can be used to simplify the way you collect and |
| more detailed data. However, it is often a struggle to | | | | view meaningful information. Thanks to advances in |
| run useful reports to guide your decisions and actions. | | | | technology, BI is now available to progressive small and |
| In recent years, many businesses have reduced their | | | | medium sized businesses that need to track their |
| dependence on Excel because they find it time | | | | performance. Having relevant information will give your |
| consuming and prone to error. Businesses using one or | | | | business an edge over your competitors in key areas |
| more computer systems need to unlock the wealth of | | | | of identifying trends, targeting customers, correctly |
| information they hold. | | | | pricing your offering, managing inventory and monitoring |
| Having the following information available on an | | | | costs. By viewing trends early and reducing the time |
| ongoing basis could help you take corrective action to | | | | and resources spent on preparing reports you will be |
| reduce costs or identify opportunities to increase sales: | | | | better prepared to adapt to changes in market |
| - Product / Service profitability individually or by group | | | | conditions. Is it worth taking the time to draw up an |
| - Customer profitability analysis | | | | information wish list? You may be surprised to |
| - Comparison to budgets, previous months or years | | | | discover what is possible through optimising your |
| (e.g. March 2009 Vs March 2010) | | | | existing systems or using BI tools. |