July is National Blueberry Month! Red Wing Software happens to have many blueberry growers as customers. In fact, there is a wide variety of berry growers using Red Wing Software accounting software and payroll software applications. We checked in with one customer, a blueberry grower, and one Red Wing Software partner to see what they had to say about blueberries, in honor of National Blueberry Month.
Red Wing Software customer Liddy, from Lakeside Blueberry Farms, had this to say: “Michigan blueberry growers were much luckier than the tree fruit and grape growers (most of crops were destroyed by frost). Tonnage will be down, but we're in good shape compared to them. The industry is still going strong, but we're seeing less hand picking for fresh because of a limited work force. On top of that, growers are getting better prices for processed (machine picked).”
Red Wing Software partner Phyllis Baldwin has been working with several blueberry farmers in Michigan and had this to say: “Red Wing Payroll both Windows and CenterPoint meet the requirements of the labor department to show the hours worked for pieces picked and Gross dollars on the paystub. The labor department has also required the farmers to make sure the worker understands the paystub (multi-language stub if necessary) and signs the bottom pay stub. We have designed a custom check with approved statement on our pre-printed checks forms. The farmers are very happy with the ability to use data collection equipment to import into both payroll systems.”
Red Wing Software is proud to support blueberry growers nationwide. We wish a happy and prosperous National Blueberry Month to all!
(Continued from the previous post) Using business ratios can help you analyze the financial health of your business. You can use ratios to help compare your business against other businesses similar to yours, and to see how yours compares to the industry averages. By comparing your business, you can identify trends and make changes accordingly. Here is Part 2 of the components of ratio tracking, what they mean, and how they can help your business.
- Inventory Turnover: This ratio measures how quickly inventory sold. A higher number generally indicates efficiency. However, companies must be careful of stock-outs in situations where too little inventory is kept on hand.
- Net Profit Margin: Measures the profitability in terms of return per dollar of net profit.
- Quick Ratio: This ratio is often used to evaluate a company’s immediate liquidity position. A quick ratio that is too low indicates greater risk for creditors and investors.
- Return on Assets: This is often used as an overall index of profitability. The higher the value, the more profitable your business.
- Return on Equity: This ratio measures the rate of return on money invested in the company by the owners. The higher the value, the more profitable your business.
- Working Capital: Because it is a dollar amount, this measurement is difficult to compare with other similar businesses, since you must also take into consideration the size of the business. However, it is a measure of the amount of funds available to purchase inputs and inventory items after the sale of current assets and payment of all current liabilities.
Use business ratio analysis to reveal trends and understand where improvement is needed in your business. Use ratios to make comparisons, understand your business, and stay ahead of your competitors.
Using business ratios can help you analyze the financial health of your business. You can use ratios to help compare your business against other businesses similar to yours, and to see how yours compares to the industry averages. By comparing your business, you can identify trends and make changes accordingly. Here are some of the components of ratio tracking, what they mean, and how they can help your business.
- Accounts Receivable Turnover: This ratio measures the promptness of customer payments. Higher numbers indicate the effectiveness of collection policies and procedures.
- Current Ratio: This ratio gives an indication of a company’s short-term debt paying ability. The higher the ratio, the greater the liquidity.
- Equity to Asset: A measure of financial position, this ratio measures the proportion of total assets financed by the owner’s equity. A higher ratio indicates better protection to company creditors, since more capital has been supplied by the owners and less by the creditors.
- Debt to Equity: Measures the extent the company is financed with money borrowed from non-owners. The higher the value of the ratio, the more total capital has been supplied by the creditors and less by the owners.
- Gross Profit Margin: This percentage measures profitability in terms of return per dollar of gross profit.
Stay tuned for the next post, which covers more ratios terms and what they mean!
Once a company grows into multiple entities, there are special challenges to face that were not present as a single company. There are ways you can keep these challenges under control, and one way is to use the features available within your accounting software. Here are some of the ways accounting software can help you manage multiple businesses.
Consolidated reporting.
When you own or manage multiple companies, you may want to look at the financial information of one company on its own, or have the option of combining the financials of several companies to look at together. Having the option to consolidate the financials of some or all companies can be extremely helpful for this reason. When you are able to get a financial picture of each business, you can make smart adjustments as necessary.
Multiple warehouse management.
While one company could possibly have more than one warehouse, it’s even more likely that multiple companies will. In this case, use a multiple warehouse management option within your accounting software’s inventory management system. Keeping track of your inventory by location is more efficient, since you can see with just a few clicks where your items are, and how many. This in turn helps you provide your customers with the products they need more quickly, too!
MICR Check Printing
Managing the accounting for more than one company means printing separate payroll and accounts payable checks for those companies. The problem of having to switch out the check paper each and every time can be solved by using the MICR check printing option. MICR check printing allows you to set up different check designs, and then print them with a special ink, onto blank check paper. It even allows you to print a signature on the check.
These are just a few of the accounting software features that can help you manage multiple companies! Learn more about your accounting software today to be sure you are using it to its fullest capacity, and you might be able to try to something new to streamline your processes.