1. Payment application errors. Perhaps the most common mistake is the simple error made by applying payment information to the wrong account or applying it twice to the same account.
2. Slow invoicing process. Invoices should be sent upon the completion of either the service or the sale of the product. If it is a recurring invoice, it should be sent promptly at the same time each month. Failure to do so delays payment and suggests to the other party that they have more time in which to pay.
3. Lack of standard policy. From the onset, you need to have a policy in place (and in writing) that makes it clear when payment is due and what the follow-up steps are for late payment. Make sure the customer knows there is a fee for late payment.
4. Insufficient follow up. Someone from your company needs to follow up when trying to collect payments that are late. This means having the information handy and making repeated efforts to receive payment.
5. Irregularly updating the database. Far too many payments are not collected because the invoices went to the wrong address or the business was sold and someone new is handling payables. Collection mistakes made through the fault of your company should be easy to correct by establishing a smooth process for updating all contact information.
6. Procrastination in addressing problems. Often, it becomes evident that either payments are routinely late or that you need to be aggressive to collect from a specific account. In these instances, you should address the situation early on. Perhaps another payment schedule will make it easier to receive payments on time. Don’t ignore such problems in the making.
7. Getting the run-around. It’s very easy in business today to avoid calls, emails, and other means of communications. Don’t allow a company to give you the runaround. Be persistent and reach the person with whom you need to discuss outstanding payment.
8. Payment recording time lapse. If you receive a payment and do not apply it promptly and accurately, you run the risk later on of not knowing whether or not payment has been made. This can result in duplicate billing of an invoice that was paid.
9. Fluid payment dates. It is worthwhile to try and lock in a payment date early on in the collection process. This way, if you are still waiting for payment, you have a specific date set and can use that for leverage.
10.  Minimal collection attempts. Each invoice should indicate that payment is late and attempts to collect should become more frequent. You should be prepared to take more aggressive action if necessary. But make sure you comply with laws applicable to collection practices.

1. Lack of support from all levels of the organization

When upper management does not take an active part of the selection process you are heading towards a disaster. Moving to an ERP system requires management to ensure that the direction is embraced at all levels; people need to understand how the new system is going to help them do their jobs faster and better. Management plays a key role supporting the ERP implementation team by making sure it has the resources, financial and otherwise, to complete the project.

2. Poor project management

The team responsible for handling the implementation must be organized and successful at project management. Not choosing the right group of people will comprise your implementation. Members of the implementation team must come as representatives from all relevant departments and make sure that the product selection and implementation process works for everyone. The team will produce and meet quantifiable objectives for the implementation and have the authority to carry out the pursuit of these objectives. The team must be held accountable by upper management for the progress of the project.

3. Inadequate Training and Education

The installation of a new ERP system is only the first part of a successful implementation. Not only must new users be trained to operate the solution, they must be educated to embrace the new system as a tool to do their jobs better, even if it requires users to change their habits and routines. The implementation team must make sure that the company is aware of the reasons for the system change to help make everyone open to the restructuring of their processes.  

4. Unwillingness to Adapt

The new software will require a lot of change and change is sometimes hard to accept, especially for employees who have been “doing their jobs just fine for years.” Successfully implementing an ERP solution requires that people let go of the habits they have developed and let the software take them where they need to go. If the inventory needs to be kept in the computer rather than on a sheet of paper tacked to the wall, so be it. ERP systems are like so many other things in life, you only get out of them what you put in.

5. Choosing the Wrong Software/Vendor

Investing in an ERP system is a very important decision. Research is a key ingredient to selecting the right system and provider for each company. Pick a software that does what you need it to do and can handle increasing volume as your business grows. Choose a vendor that has experience and understands not only software systems but business processes. The idea consultant is someone who has reviewed and installed accounting systems at businesses similar in size and scope to yours.

Core Business vs. Back-Office
Next, take a close look at your core business. Your core business is comprised of two areas: the front-office, and the back-office. The front-office is the fuel that propels the vision and is comprised of marketing, sales, business development and customer service, and it is these things that drive your business vision. The back-office is the foundation of your organization and includes HR, payroll, benefits, accounting, finance, IT and tax..

Reducing Costs and Improving Operations
Business owners acting as Controller’s, CFO’s acting as bookkeepers, and Accountants acting as HR managers, all create inefficiencies and risks, all the while being distracted from growing their business. It is crucial that companies have the right people responsible for only their applicable areas of expertise. Outsourcing the accounting functions to qualified professionals bridges the gap between your back-office to the front-office while reducing costs, and increasing quality and efficiency. For example it can:

• Significantly reduce overhead
• Optimize processes and workflow
• Allow Management to focus on core competencies
• Provide accountability with a trusted business partner
• Improve operational efficiencies
• And re-direct Finance and Accounting expenses to finance corporate growth strategies.

When is Outsourced Accounting a Smart Business Strategy?
If your accounting process needs to be done faster and less expensively by qualified personnel; or if your company is too small to accommodate a full time CFO or controller, but still needs some of the functions they would provide – outsourcing might be a good option. Having an outsourced team dedicated solely to your accounting functions increases the likelihood that it will be done in an undistracted environment, and by people qualified to complete the transactions efficiently.

As companies begin to utilize the cloud in more areas of their business, new ‘best practices’ are beginning to emerge. We recently read a helpful article on CFO.com detailing some of these which we will summarize and highlight for you here.

1. Stay Alert
   a. It is likely that opportunities to reduce your IT expenses will increase over time, rather than all at once, so be prepared to wait for a full view of your ROI.
   b. You should avoid investing in more server capacity than what you need, but instead choose a vendor who will support scalability.
2. Prototypes can be Helpful
   a. Create prototypes prior to choosing a final version of the application. This will allow you to view multiple options and make the best decision for your company in regards to which will provide the most functionality.
3. Preparing for Change
   a. It is likely once you offload data to the cloud that some of the staff within your IT department may need to be reassigned to other duties. People who keep servers and networks running as well as those that manage applications and support users may no longer be necessary.
   b. You may want to consider a ‘community cloud’ which some retailers and manufacturers have found to be beneficial. A community cloud allows data and information to flow seamlessly from external vendors, through your point of sale, inventory and shipping systems and then back to receiving.
4. Contracts
   a. Whenever dealing with cloud providers, be sure your company retains the ownership, use and control of your data. Furthermore, you should require vendors to notify you prior to making changes that may affect your business practices, and insist on detailed descriptions of how they will insure the integrity, confidentiality and availability of your data.
   b. Don’t tie usage levels to your baseline demand and make sure the contract provides for variable-demand periods.
   c. Get a detailed list of any additional charges that may be applicable when it comes to your specific business requirements.
   d. Do the research ahead of time regarding whether you can move your data from your current software into the cloud. Some software applications prohibit a transfer to a multi-tenant environment, while others may allow you do so for a fee.
   e. Consider adding a clause to your contract that allows you to terminate without penalties should the cloud vendor be acquired or sold to another company.
5. Know Where Your Data Is
   a. Be sure you understand the legal requirements for jurisdictions in which a cloud vendor operates and know where your data may be sent. Additionally you will want to research and consider different taxes that may be applicable to you once you are in the cloud. Laws differ from state to state on whether certain types of SaaS are subject to sales tax.
6. Winding Down the Data Center
   a. While the potential for savings is high – be sure not to jump in too fast. Do your research ahead of time and note that it will likely take some time to get all of your data transferred.
   b. Finally, you will need to conduct an inventory of servers, what applications run on them and wipe them clean of all data. You may then choose to sell them or re-purpose them depending on your needs.

1 Gartner Inc.
2 IDC

Adapted from ‘Be Clear about the Cloud’, www.cfo.com

These programs can range from simple punch cards (i.e. buy six muffins, get a seventh free) to store-branded credit cards that reward redeemable points.

There are distinct advantages to having a formal loyalty strategy in place, including having a means to maximize opportunities and to grow your business in a more strategic way.

The most exciting thing is that you can build the program at your own pace, on your own budget and to your liking. Once your program is firing on all cylinders, you’ll develop a deeper and more meaningful relationship with your loyal customers which, in turn, should provide you with insights that will allow you to strategically outshine your competition.

Below are four practical tips for starting your own loyalty program:

1. Build a solid loyalty-strategy plan: This is where your creativity comes in. All components of the program should be clearly considered and vetted, such as timing, branding, value-proposition, attractive incentives and rewards, loyalty currency (points, cash-back, discounts, coupons, etc.), and marketing channels.  You don’t have to reinvent the wheel, look to companies that have a solid loyalty program in place for inspiration and ideas. For instance, the Neiman Marcus loyalty program makes excellent use of attractive incentives, while Subway offers a good example of a program based on loyalty currency. Prepare a calendar of events and timetable to successfully complete the plan. Talk to your vendors and suppliers about providing assistance to showcase their products or services in exchange for supporting your program.
2. Embrace a loyalty mindset company-wide: There needs to be a philosophical change in the way your company views loyalty for your employees, vendors and customers. Starting at the highest level, it’s crucial that each department within your small business fully understand, support and embrace the loyalty strategy that you’re going to unveil. Once your plan is in place, provide training at all levels within your business. The training program should be an ongoing and mandatory employee obligation. This will offer the highest possible success rate to impact your company’s bottom line.
3. Set up your systems: Depending on the sophistication of your Customer Relationship Management (CRM) system, you’ll need to ensure that the proper systems are in place to effectively run your loyalty program. There are many tasks to consider, including the process of enrolling, identifying and tracking your loyalty customers. In addition, you’ll want to consider having flexible software in place in order to efficiently set up promotions, run reports and add or delete program options at your preference. Start by talking to your software provider, point-of-sale provider, your IT staff and vendors for software recommendations. Note that the cost of getting started can vary drastically by industry, so be sure to do your homework.
4. Market and launch your loyalty program: After putting the pieces together, it’s time to promote and launch your program. Depending on the size of your small business and its geographic footprint, you may want to consider a soft launch or pilot launch prior to releasing the program to your entire customer base. This will allow you to work through any potential snafus. Either way, be sure to allocate plenty of time to drum up interest prior to going live. This can be achieved through in-store promotion, online promotion, receipt messaging, e-mail, text and social media. One option you may want to consider is assigning a team to focus on specific action items to boost membership, such as a special sign-up day that promises incentives for instant enrollment (a free product or service paid by a sponsor or manufacturer).

Once the program has launched, your customers will be curious about how the program works. It is your job to display and explain the program rules in a simple and concise message. Put your best offering forward as your customers will want to know exactly what the program offers them and why they should enroll.

Adapted from Entrepreneur.com posted on December 10, 2010. Read more.

In two conference calls between AICPA Chairman Robert Harris, President and CEO Barry Melancon and AICPA members with backgrounds in working with public companies – the main conclusion was that, “an adequate transition period is the most important consideration,” as it applies to converting their financial reporting systems from GASB to IFRS. (To read an earlier post detailing what this conversion entails, click here.)

The AICPA’s research found that companies will need between four and five years of preparation time to adopt IFRS guidelines – giving companies an adequate amount of time to determine how they will be affected by the change. Such items include determining whether covenant requirements need renegotiating, compensation agreements need to be amended, joint venture agreements need modification and collaboration agreements need to be updated.

To read the webcpa.com article, click here.

Additional data from the report concluded the following:

The data from the 2011 Salary Guide contains national averages based on analysis of the starting salaries of the thousands of job placements managed by Robert Half International’s U.S. offices. Messmer concluded that, “Companies are not only looking for strong functional expertise, but finance staff who possess outstanding soft skills and proficiency with relevant software packages. Professionals can enhance their marketability and earning power by obtaining an industry-recognized accreditation, such as the certified public accountant designation.”

With Business Analysts, Tax Accountants and Financial analysts projected to see the most notable increases – it is a good time to be working in this field.

For more information on this subject, click here.

To download a copy of the 2011 Salary Guide, click here.

Keith has a wealth of knowledge in business management systems. He began his career in technology as a computer support representative. He was a key decision maker in selecting the accounting system for this company and learned a lot about the inner workings of ERP systems during this time. Keith has also worked for a number of software developers such as Microsoft, Sage and other third party developers.

Of SystemLink Keith comments, “My first impression of the company was that it was made up of an owner and a staff who truly cared about customer satisfaction. It starts at the top with Dave and trickles down throughout the rest of the staff. I really appreciate the fact that we not only do sales and implementation, but long-term support as well. So many companies out there simply sell and install the software and then walk away from their clients leaving them to figure out the rest. I am so glad that we’re not like that. I work closely with our consultants throughout the sales process and ensure a smooth transition for those who perform the implementation and for our clients’ long term satisfaction. Everyone here is far more interested in truly satisfying our clients’ needs rather than simply closing a deal.”

When he’s not working hard for SystemLink and their clients, you’re likely to find Keith spending time with his parents, who recently moved to the area, and his wife Karen. Keith is most proud of his two children: his son Austin and his daughter Sierra. “I couldn’t be more proud of the people they have become and look forward to watching all they accomplish in the future.”

Gartner recently surveyed 140 companies asking them to estimate their annual losses due to bad data, and here is what they found. 1

• 4% estimated as much as $100 million
• 22% of respondents said they had lost $22 million
• And on average of those surveyed, companies gave up around $8.2 million

How can Business Intelligence help your company avoid losses like this? First, it’s important to have a clear understanding of the technology itself. Business Intelligence describes the process of gathering, manipulating, and analyzing data from past and present sources. Further, it provides interactive, real-time, business critical information on behaviors and trends of your business and market.

The second step is to determine which BI tools would be the most beneficial for your company in regards to extracting the data you require. Some of these include:

Analytics
Analytics tools enable you to transform data into information, and then get that data into the right hands, at the appropriate time and in the right format. They provide a multi-dimensional analysis of data ensuring you see the big picture.

Compliance Assurance
The right mix of accounting and BI applications can work in combination with internal policies, compliance programs and other technology to increase transparency, ensure proper distribution of critical information, and provide better security and peace of mind.

Inquiry
Inquiry tools enable you to drill down into a specific area and quickly extract the data you need. For example, if you need to examine sales trends by region over the last year, or identify the top 10 best-selling items – this tool would help you locate the data quickly.

Dashboards
A good dashboard will provide an all-in-one place snapshot of your business’ health that is easy to understand. Common categories include: revenues by period, product sales by category, actual vs. budgeted financial indicators, and expenses by category.

Flexible Reporting
Business Intelligence applications give you the ability to customize reports to satisfy every business requirement. This ensures that the appropriate data is in the right hands on a regular basis providing a much smoother and more organized operation overall.

Two of the most important elements provided by BI are increased productivity and efficiency – items that should be primary goals for any organization. Quick access to the right information results in better decisions and a more competitive outlook.

1 Poor Data Quality Costing Companies Millions Annually – By Jeff Kelly, searchdatamanagement.techtarget.com