Using an accounting system that can′t handle your business needs can be detrimental to the growth of your business. Check out these three myths about accounting software and see if your business is being held back.

Myth 1: It′s better to stay with my current accounting system than spend time and money on something new.

It may be tempting to stick with the accounting program your business has been using for many years. Moving to a new system takes time and effort, and it also means your accounting team will need to learn the new system. After many years of using the same system, users have likely become comfortable with it. As the system has aged and become outdated, users may have built work-arounds to make up for the lack of features. Because these work-arounds become habit, they don′t seem to be additional work, but in reality, there is likely a better way. Newer technology can eliminate work-arounds, eliminating manual work and reducing errors. Implementing a new system can help you provide better customer service, and can also help you increase profitability when you know where your profits are coming from.

Myth 2: All accounting systems offer basically the same features.

If you search for the term ‘accounting software’ you will find a multitude of systems available. You can be sure that none of those systems are exactly the same. All accounting systems offer a unique set of features. If you are working with a system that does not contain the features your business needs to operate efficiently, you are holding your company back from growing. Imagine the time you could save by emailing invoices, importing bank transactions, or being able to manage two inventory locations. These are just a few of the accounting system features that can propel your business forward because of the time-savings. In-depth reporting can also make a difference to your bottom line. By seeing information relevant to your business, you can make adjustments to increase your profitability.

Myth 3: If the software is good enough, I won′t need support.

No matter how good a software system, support is extremely important. Using software without support can lead to confusion and costly mistakes. The software support team can help you learn new processes and ways of doing things you may not have thought about, which can in turn help you streamline processes and increase revenue. They can answer any questions you have or help you solve problems. When you make a mistake and time is of the essence, you will be thankful to have a support person walk you through the process of fixing it, rather than guessing and getting it wrong. Indeed, support may just be the most important consideration for your software purchase.

Using an outdated software system or one that does not meet your business needs can hold your business back. Now that these myths have been busted, have a look at your system with fresh eyes and consider how you can grow by moving to something that fits your business better.

By Stephanie Elsen

All businesses can benefit by implementing accounting software. Manufacturers have their own specific set of needs when it comes to setting up and maintaining an accounting system, especially when it comes to inventory. With the right system, a manufacturer can increase profits, streamline practices, and keep customers happy. Here are some of the most important features within an accounting system and inventory management for manufacturers, along with their benefits.

Assemblies

‘Assemblies’ is a term that refers to creating finished products from other component items in your inventory within your accounting system. Once you set up inventory components and organize which ones are used to create the finished item (“assembly”), you can move forward with production. You enter which assembly items to be produced, and the system will pull the necessary component items out of inventory, and let you know what is needed. (It will also show you whether you need to order any missing components.) Using assemblies helps you understand your profits, streamline your order management, and stay organized.

Bill of Materials

A bill of materials is a list of materials to be used for an assembly process. When you create a production plan to build your assemblies, the system looks at what you are building and then looks at the supplies that are needed for that plan. A bill of materials lists what is needed, and what is available or not available in your inventory.

Costing Method

User specified costing method, ranging from LIFO, FIFO, average or standard. Generally your accountant can help you determine the best costing method for your organization, and your accounting system should be set up accordingly.

Item Alias

Item alias refers to the ability to give inventory items alternative names for easier lookup of name variations. When you have a long list of inventory items, it can be difficult to remember exactly what each item is called. Setting up each item with an alias, or alternate name, can help you find inventory items in the accounting software more easily.

Physical Inventory Count

Taking a physical inventory count allows you to update your on hand quantities and adjust for accuracy. Accounting systems typically have a tool that allows you to print documents that aid in the process of collecting a physical inventory count.

Pricing Method

A pricing method allows you to specify, on an item by item basis, how to calculate the price of the item. Common pricing methods include: fixed price, markup based on cost, gross profit margin based on cost, percentage of base price, other. Your accounting system should accommodate the pricing system that works for how you calculate pricing for your products.

Serial/Lot Number Tracking

Certain types of products carry serial or lot numbers, and those numbers need to be tracked by the manufacturer. The ability to track serial and lot numbered items within your accounting program is more organized and more easily accessible than tracking them on a spreadsheet or by hand.

Multiple Units of Measure

If you purchase products in one unit of measure and sell in a different unit of measure, you will need to the ability for your accounting software to handle that capability. Managing multiple units of measure within your accounting software allows you to keep inventory numbers accurate and streamline the order entry process.

Make the most of your accounting system by using features that are designed to help manufacturers! CenterPoint Accounting Software has the tools manufacturers need to manage their inventory. Visit the CenterPoint Accounting Software product page to learn more.

By Stephanie Elsen

If you are looking for accounting software and you came across our site, you might be wondering where CenterPoint Accounting Software and Red Wing Software fit into the scheme of accounting software programs.

There are so many accounting software companies out there; it can be hard to tell the difference between them all. To give you a good idea of who we are, consider these statistics about the people who are benefiting from our software.

• 37% have outgrown their basic accounting software. People who started with a basic or “shelf” accounting software find that their business has outgrown the basic software’s capabilities. Perhaps they are entering too many transactions or inventory items, or the system is getting bogged down by too much stored history. This group also includes those who are using old, outdated systems for which they are losing support or the software cannot operate on newer computers they are purchasing. CenterPoint Accounting Software is a mid-market program and works very well as an option for those outgrowing their basic accounting software!
• About 26% need better financial reports or specific software features to handle their company’s needs.People who desire better financial reporting account for a large percentage of new customers! Tracking information by department or profit center, drilling down to source entries, and a tight audit trail are all important considerations for a growing business. CenterPoint Accounting Software performs these functions very well. Many specific software features are also handled in CenterPoint. Managing multiple companies & consolidated reporting, managing multiple units of measure, and the ability to create custom reports are just a few of the features that can be handled within CenterPoint.
• 20% are new businesses.Not everybody wants to start out with a basic shelf accounting software program. Those who understand the importance of good financial management and those with more complex needs at the start of their business turn to CenterPoint Accounting Software.
• 17% are cutting costs or bringing the accounting back in-house. People who find themselves paying for and using a system that is way more functionality than they need often find that CenterPoint can handle what they need, and for significantly less money. People who are also trying to cut costs and gain control by bringing their accounting back in-house also find CenterPoint to be a great option.

Red Wing Software and CenterPoint Accounting Software have helped thousands of accounting software users manage their financial information. Contact us today to see how we can help you by calling 800-732-9464 or e-mailing info@redwingsoftware.com.

By Stephanie Elsen

If you are currently searching for accounting software, it may help to know what kind of buyer you are, so you can get the best results from your search. Web site www.FindAccountingSoftware.com has developed a free tool you can use to prioritize what is important, and use that information to get the best search results. Follow this link to give it a try!

Quiz: What Kind of Accounting Software Buyer Are You?

So you’ve done your homework and narrowed down your accounting software search to just a few systems. Now it’s time to test out each system and see which one works best for you. There are several ways to test out your new system. Being aware of what is available will help you choose the right method for you and your business.

View product videos

Watching a video about your potential software is a good way to get to know the system and in general, what it has to offer, including some of its features and the user interface. The downside of product videos is that you can’t search for the features you are seeking, or see how the product works. It is a great way to get a general feel for the system, which can be extremely helpful at the start of your software search.

Attend a live demonstration

Some software companies offer potential users the opportunity to join a demonstration of their software, whether it’s via the internet or in person. This can be a beneficial use of your time, since you can watch an expert navigate through the system, with the ability to ask questions along the way. After all, who is better at showing you the system than a system expert? Attending a demonstration is a must-do for the purchase of any software system!

Fully functioning trial software version

Some software vendors offer a trial version of their software for you to try out. Some software trials are fully functioning versions of the software, and others are more limited. The advantage to using a software trial version is that you can really get a feel for how the system works. However, without some training or at least familiarity with a software system, it’s nearly impossible to get a true picture of how the software really works.

In a perfect world, you would have the option to use all three of the above to make your decision. First, view a product video at the start of your software search, in order to gain familiarity with the system. After that, attend a live demonstration to get an idea if that system (how it works and its feature set) is an appropriate option for you and your business. Using these two options together can be enough to make your decision, but if you still have questions after that, installing the trial software version can really help. Just be sure that when you are in the trial version working, there is somebody at the software vendor company who is willing to help you along the way and answer any questions that may arise during your testing.