A lot of Alberta businesses have experienced the negative effects of the economic downturn over the last few years. Pipeline politics and oil production constraints continue to impact our economy while falling construction levels and high unemployment rates weigh heavily on the minds of many Alberta business-owners.
Sometimes the pressure to cut costs during a recession can force you into making poor business decisions. Most businesses resort to cutting as many costs as possible in times of economic downturn, but there are better ways to weather the storm than blind cost-cutting.
Investing in an ERP system during a recession results in better transparency and efficiency, fostering faster growth when the economy gets back on track. An ERP system, like Acumatica, offers a comprehensive way to identify and track growth opportunities in real-time so that businesses can respond to internal and external changes with confidence — and so they can act in the best interest of their customers, employees, and investors. Eliminating redundancies and optimizing your business processes are great in a depressed economy and even better when it turns the corner into a prosperous one.
Interested in finding out how an Acumatica ERP solution could transform your business?
Mistakes Businesses Make During a Recession
As we said, periods of recession can result in a lot of companies making poor business decisions. Here are a few of the most common mistakes we see business-owners making during tough economic times, and ways an effective ERP solution could mitigate these mistakes.
Failing to capitalize on market opportunities
A company will miss out during times of economic growth if they do not recognize the need to introduce new products or services, and use tools like an ERP system to project the estimated revenues and costs associated with the products or services.
Allowing operational inefficiencies
Time wasted means money lost. Time efficiency can help businesses cut costs, and with the right ERP system implemented, administrative tasks take a fraction of the time. Furthermore, metrics that are easily visible within the system can prompt managers to create the most effective sales incentives.
Not acknowledging or correcting problems
By using an ERP software solution to track all aspects of the company’s operations, decision-makers can find and eliminate issues and make more informed decisions promptly.
If any of these business mistakes stood out to you and you’re interested in finding out how Acumatica can mitigate these in your own company – don’t hesitate to reach out!
How Identify Inefficiencies that Are Costing Your Business Time & Money
Workforce inefficiencies are one of the primary mistakes we see businesses making in not only a booming economy but also during a bust. Especially, inefficiencies in how business-owners utilize their employees, and each employee’s strengths.
If you’re interested in assessing your business for potential inefficiencies, the first thing you should consider is: how much value is your business losing with how you’re utilizing your employees and systems? Typically, when a company needs to resolve issues like the ones listed above, their first instinct is to throw more bodies at the problem. This is incredibly inefficient as it costs you valuable time and money to pay your team to do things that an automated ERP software solution could fix.
For example, many businesses have multiple employees whose primary role is data-entry. Let’s say you have ten people working in data entry with an annual salary of $50,000. Do those employees have skills that benefit your business on a larger scale? Rather than plugging in numbers, maybe these employees could offer value to your marketing or sales? Paying ten people $50k a year to do data-entry is a $500,000 hit on an annual basis. An ERP system will be able to automate this for a fraction of the cost.
Another inefficiency we see often are employees focusing on tasks they weren’t hired to do because of a gap in the operation that needs to be filled. For example, when you bring on a marketing manager, their primary job is to market your brand and generate awareness. If they are bogged down by trying to reconcile inventory, because of inefficiency in your business processes, it’s an indirect loss to your business. The marketing manager is doing something necessary and of value to the company, but it’s still a loss because you are not utilizing them to their fullest potential.
After reading these examples, ask yourself: Am I throwing bodies at problems instead of automating? Are my employees and departments overwhelmed with tasks like data entry or inventory reconciliation because of a lack of integration?
If this resonates with you, these inefficiencies are costing you a lot more than an ERP solution. When you can automate these tasks, you can run your business lean during an economic downturn. When the economy bounces back, and operations pick up, these automations and integrations optimize your business — which means, more money in your pocket. It’s a simple solution, run lean with automation and integration instead of paying more for employees.
If you have any questions on identifying inefficiencies in your business and crafting customized solutions:
ERP Software – A Business Optimization Tool in Good Times & Bad
A common misconception we see among business owners is that investing in an ERP software can be put off because it is merely an audit trail of your transactions. This couldn’t be further from the truth and business owners who believe this are holding themselves back. Rather than waiting until your business is more profitable, the economy improves, or any other reason for holding off on an ERP software solution, you should consider how an ERP could help you make your business more profitable now. No matter the situation you find yourself in.
Here are a few Acumatica ERP features that could boost your business, in good times and bad.
Acumatica Cloud ERP Features to Optimize Your Business
ERP forecasts use past data to develop trends which you can extend to the future. Every transaction is captured, and these can be extracted and analyzed. When it comes to financial forecasts, ERP software can help you predict revenue and costs to create a budget. You can also predict capital requirements in the future based on shop load from your ERP combined with future product demands. Revenue forecasting functionality helps a business be more proactive and allows for proper scheduling and preparation.
Tools like automated financial reporting and analytic tools are a must-have for modern businesses. Financial management software, with key performance indicators (KPIs), give business-owners instant insight into the health of their organization. This can be forecasting sales, avoiding inventory shortages, finding the best price points and much more.
For example, CFOs and their financial teams are regularly overloaded with tasks. Rather than hiring more staff to complete these tasks, having access to automation and real-time financial data will help take the stress off of these team members. And it will help you continue to grow your business in volatile times.
Integrated workflows span the full suite of business management applications, from Financials, Project Accounting and Inventory Management to CRM. Acumatica is built on a future-proof platform with an open architecture for scalability, ease of use, and rapid integrations. Acumatica allows for easy 360 degree views of the business at all times, and not having to fight with integrations.
With Acumatica ERP Dashboards, you can monitor current financial, operational and organizational information, and analyze real-time trends and KPIs that relate to your job. You can see your orders to ship, your project status and your manufacturing operations real-time. This eliminates the time spent organizing and communicating and searching for information. With Acumatica, the information comes to you instead of you having to look for it.
Investing in the right ERP software solution will help you make smart cost reductions, operate more efficiently and keep your business at an optimal level in the year to come. ERP software, like Acumatica, can improve process efficiency and employee productivity across the board. It helps you manage those critical areas of your business that take you from survival mode to thriving.
STOP looking at ERP as an audit trail, and start looking at it as the most critical part of your business. Acumatica can be the resource that knows everything about your business and a resource you can’t exhaust.
Looking for an ERP software solution in Calgary or Vancouver? Get in touch with the Aqurus team to talk more about Acumatica, our gold-certified implementation process and growth-friendly licensing model!