Notes from the President


Ken Hilton - President Red Wing Software

I hope you had a joyous holiday season.
January is the busiest month here at Red Wing Software. With everyone closing out 2018, beginning 2019, and making sure their payroll information is up-to-date with the rapidly changing tax calculations, our support lines light up. We have prepared internally to answer the calls from our customers at a rate you’ve come to expect from us. You can help ensure a smooth transition to the new year by reviewing the documents and videos recently posted on our web site, and referred to in this newsletter, that answer frequently asked questions about your software.
I’d like to congratulate our support staff for consistently reaching 92% direct pick-up of calls coming in to our support lines. That percentage has steadily improved over the years to the excellent level it is today. Our entire staff has worked hard to achieve this goal, and they are prepared to continue this high level of service. Please join me in thanking them for their hard work.
All of us at Red Wing Software wish you a happy, prosperous, and safe New Year.

Notes from the President


Ken Hilton - President Red Wing Software

Instead of telling you what I think this month, I’ll just ask some questions to provoke some thought. If these questions look familiar, and you’ve been asking them for a while, it might be because I asked similar questions in this newsletter about eleven years ago. Don’t just read the questions, actually think about your answers.
Are you controlling your business, or is your business controlling you?
Do you control the expenses in your business by operating from a budget, or do you operate by the “seat of your pants”?
Do you have processes in place (and documented) for internal job functions, or do you assume everyone knows what they are supposed to be doing?
You know that everyone in your organization has certain responsibilities. Have they been clearly communicated, and do the people in your organization know they have these responsibilities?
Do you know the true cost of items that you produce or buy for resale, including indirect costs?
Do you know your most profitable items and those items that are not so profitable and maybe should be discontinued?
Do you know your businesses key financial ratios, what they mean, and where the danger levels are?
Do you analyze the return on new asset purchases before the purchase is made?
If you think you have good answers to all of these questions, good for you. I challenge you to continually ask these questions throughout the year, and improve operations through better management. At Red Wing Software, we evaluate our position and try to answer these questions regularly. We fear that once we think we know all the answers, we stop improving.

Red Wing Software - Notes from the President Ken Hilton


Ken Hilton - President Red Wing Software

One of Red Wing Software’s core values is to have fun. As an example, while I’m writing this, I hear a chorus of voices singing Happy Birthday in someone’s office. Don’t get me wrong, everyone takes their respective job seriously and wants to live up to our Vision – “Creating the Best Management Software Experience.” But, occasionally, a bean bag tournament will break out.

When you work with the best people and have great customers, then get them together, as we recently did at a classroom training in our Minnesota office, it’s hard not to enjoy the experience. On several occasions over the three-day training, attendees would ask, “Can I meet (fill in the blank)? I talk to them all the time and would like to put a face to the name.” We’d get them together, and then I’d hear the customer say, “I’m the person that always calls and bugs you about …”. Of course, the answer from our staff is always, “You’re not bugging me; that’s my job and we’re here to help. We would much rather you call and get help than struggle and get frustrated. We like to hear from you.”

Our team really does enjoy doing their jobs. During one of the breaks, a customer wanted to discuss something they were struggling with in the software, and had a suggestion for a new feature. Within about two minutes we had a small team assembled to hear what the issues were and find ways to help. Believe me when I say, “These team members didn’t drop what they were doing just because I asked them to - they truly wanted to know what we could do to improve the customer experience.”

Join us in having fun, and help us have fun by letting us help you.

Red Wing Software - Notes from the President Ken Hilton


Ken Hilton - President Red Wing Software

I recently read an article in Software Executive magazine about customer success. While this information related specifically to the software industry, it could easily be applied to virtually any business. The story talked about going beyond just answering your customers’ questions and focused more on getting the users of your product to use more of the capabilities built into your product.

At Red Wing Software, we have a team that focusses on creating helpful information for using our software. This includes installation instructions, getting started guides, online documents and videos that help our users navigate through the processes of getting information into the software, and running the reports needed to make informed financial decisions for your business.

In addition to these helpful documents, videos, and “How2” instructions, we offer multi-day classroom training, one and two-hour webinars on specific functionality, and on-site professional services. While we try to make it as easy as we can to use the software, we are spending additional resources to help our customers get more out of their software investment.

I challenge everyone to take a look at the product or service they sell and look for ways to help your customers get more out of your offering. You have invested a lot of time, money, and energy to create the products your business offers. Are your customers taking advantage of all the effort you have invested, or are they just using enough to get by?

I also challenge all of our customers to take advantage of what we have created over the last 39 years of software development. Poke around a little in the many reports in the system. You can’t hurt anything in your data by running reports, and you might find some valuable information about your business that you can use to be more profitable.

Red Wing Software - Notes from the President Ken Hilton

Ken Hilton - President Red Wing Software

In July, a few staff members from Red Wing Software participated in two different conferences discussing current accounting and technology issues. The first event was a meeting of Certified Public Accountants that takes place every other year. I was fortunate enough to be a presenter on two different panels during this conference, talking about current technologies specifically related to accounting. The other conference was a meeting of professionals dealing with standards for gathering and reporting financial data for specific vertical markets. Dick Moore, Development Manager, and Julie Strain, Sales Engineer, presented information on management accounting implementation and challenges.

At both meetings, one of the major topics of discussion was the effects and consequences of the new tax laws on businesses. These discussions ranged from new depreciation rules, to the issues on the effect of taxes owed by a C Corporation, S Corporation, and Sole Proprietor. It was clear that there are still many questions about some of these new rules, and how they will be interpreted. We are still waiting for some guidelines from the IRS on how some of these changes should be handled.

I’m no tax expert, but one thing is clear: it will be more important than ever to be working with people that are experts on the subject. The best thing that each of us can do in our business is to keep the most accurate records possible, so when we work with our accountants and consultants to calculate taxes owed at year-end, we can provide the level of detail these experts need to accurately help us complete our tax forms.