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As a company starts earning big bucks, they hire more and more people in various departments such as sales, operations, customer care etc. However, most companies conveniently ignore their accounting department. The accounting is the lifeline of every company and it impacts all the departments. More often than not founders find themselves in a tough spot because of disregarding the accounting department. 

The accounting department is a crucial factor in deciding the success story. According to Indian business magnate Mukesh Ambani: Data is the new oil, more and more people are investing in data to enhance their business growth. Founders and investors will have problems while investing if their accounting and finance team is incapable of providing them with accurate data. The accounting department can’t be expected to provide high-quality data on time if they are understaffed. Inaccurate data will steer away big-ticket investors from investing in your company. Additionally, it can hamper the decision to launch an IPO. 

Imagine you invest in a company based on their financial data but re-evaluation of it by your accounting department reveals that there is an array of misrepresentation in it. You would immediately sue them, correct? The investors for your company might exhibit a similar behaviour or worse if there is an error in your data. Suing a company makes it a public record and jeopardizes the chance of potential future investments for the company.  

Business decisions should always be made after analyzing the financial data so that it gives you answers to questions such as: 

• How much money (liquid cash) is available?
• What is the cash burn rate?
• Where is the burn rate more?
• Source of cash flow, etc.  

Some companies are forced to hire experienced professionals during a crisis to get the company back on its legs. That is a brilliant move but even an experienced professional can’t take real-time decisions if systems and processes are not in place and misrepresentation of data will make the matters even worse. It can only lead to digging a bigger hole which will devour your company. Experienced professionals must be supported by right and scalable technology to ensure that they become a helping hand in the desired growth of your company. 

Conclusion

There is an old proverb: Prevention is better than cure. Why should you wait until the situation becomes worse? The best thing to do is to hire more people in the accounting and finance department. The accounting team is very important for your company’s growth. Although increasing the headcount is a part of the solution, it is incomplete without integrating the proper technology for a hassle-free process. It is imperative to upgrade to Cloud ERP as the business grows and to clear the future growth path.

Many companies chose Cloud ERP to overcome recession rather than living in a delusional world where terms like recession cease to exist. Let us bring you back to reality, according to BBC, recession in India is right around the corner. Maybe it’s true, maybe it’s not (It is hard to trust news outlets these days) but it doesn’t hurt to be prepared for the doomsday rather than scratching your head for a solution when it happens.The Indian government is taking various measures to revive the slowing economy. It has announced the biggest ever income tax reduction for corporates in India and more reforms are on the way.

Similarly, accepting that recession is a possibility will help you to start searching for timely solutions. One of the best solutions to make your organization recession-proof is through the implementation of ERP software.

Why do companies crumble during a recession? 

There are many reasons for companies to crumble during the recession but we will focus on 3 major reasons.

Failure to Plan 

Planning plays a crucial part in the organization’s future and wasting time by being a couch potato or sitting around doing nothing will do more harm than good. The key is to have multiple plans which can pull you out when you are stuck in quicksand. Implementation of ERP software in your organization will help you gain insight and it will help you to plan in advance.

Failure to Adapt 

Nokia, the organization which was synonymous with mobile phones during 2000-2010, lost most of its revenue and shares, later Microsoft acquired it. The primary reason for its debacle was the unwillingness to accept change and thus provided ammunition for newbies like Apple to obliterate the mobile titan, Nokia. Upgrading to newer technology is difficult but the only way to survive in the present era is by embracing the latest trends in the market. After a very late realization, Nokia is back with a bang by incorporating the latest technology in their devices.

Ignoring Weakness

There is a very popular idiom: A chain is only strong as its weakest link. It means that your organization is only as strong as its weakest performing member/process. Identifying that employee/process and taking steps to improve them will help your organization to grow strong. It is difficult to recognize the weakness in your organization. Fortunately, you can easily detect that through ERP software.

How can Cloud ERP help you?

During the recession, most companies had let go of their experienced employees and saved money. That acted as an interim solution which helped them to cut losses but strapping a band-aid on your body and expecting it to heal a fracture is preposterous. You can’t sacrifice talent to save money.

Companies can instead focus on enhancing profit by improving their processes and taking faster business decisions. Cloud ERP can be an aid to the management by providing real-time operating data like customer-level profitability, ageing of the receivables, slow-moving /fast-moving inventory analysis, product-level profitability and many more. 

Ever had a eureka moment while sleeping but didn't have the data to take critical business decisions? Cloud ERP gives you access to accurate information and reports 24/7. Thus, enabling you to think freely, act on time and increase your profitability by 

• Improving inventory to sales ratio

• Decreasing working capital requirements

• Reducing the loss from inventory obsolescence and many more. 

Cloud ERP software can help you stay profitable during the recession.

Although all these factors are beneficial to companies, entrepreneurs may feel that ERP implementation is time-consuming and is expensive. Check out TYASuite, a cloud-based ERP software which is affordable and can be implemented in any organization within days.

At Eleventh hour, we realise that it is impossible to close the audit and file the ITR. The finance, audit and tax teams start praying that the CBDT extends the deadline. The tension is more when you have a substantial amount of losses to carry forward. After few sleepless nights and countless rumours, the CBDT decides to extend the due date.  

We start celebrating and file the ITR in the next few days and completely forget about it. Year after year the same thing repeats and we start blaming the accounting and finance department and auditors for their failures. 

But are they the only ones to be blamed? 

The life of professionals in the accounting and finance department is always filled with deadlines and even more deadlines. To make matters worse these departments are always understaffed. Getting the audit completed and filing the ITR is a mammoth task. The situation may be worse in start-ups and fast growing companies having complexities in their business. The job becomes more difficult when there are very few members in the team. The huge workload prompts them to postpone the ITR filing till the last date. Fortunately, our government has not left them out to dry and has extended the deadlines most of the times. 

Can this problem be easily solved by increasing the workforce? 

Unfortunately, it is not that easy. Human beings have a natural tendency to get bored while performing redundant and boring tasks. A bored professional is a beacon for committing mistakes and that can be a disaster for any company. 

ERP software is your knight in shining armour which will rescue from all these situations. ERP puts a lots of control in the process, helps avoid mistakes and streamlines all your data in one place. 

Cloud ERP can be accessed from anywhere and at any point in time. The accessibility of data helps to create reports without losing much time. The accounting and finance departments will be more motivated to do their work efficiently. ERP will also help CFOs and controllers with automated reminders to complete compliance activities well in advance. 

Do justice with your team and switch to Cloud ERP!

Let’s be honest; every business almost entirely depends on their employees for success and prosperity, which makes them an inevitably crucial part of the business cycle.

In retrospect what this would mean is an employee that is content with his job can be able to contribute to the success better due to a sense of commitment they’d feel. A satisfied employee is much more productive than an unsatisfied one; which is why it is vital for a business to make sure their employees.

While productivity isn’t the sole factor for driving success within an organization, It’s undoubtedly an important one which is why business should focus on latest technological advents that help them keep their organizational productivity high.

Bringing an agent of productivity within an organization can help the everyone from ground staff to higher ups in the management to help create a more organized and streamlined business; the agent in talk here is none other than Cloud ERP software.

Productive workforce is the key to employee satisfaction

The productivity and satisfaction equation work hand in hand together, one simply cannot exist without the another one while the end result of all this is generally business growth.

However, the same is possible in reverse as well, lack of employee satisfaction can lead to a spiral downfall of the business in the larger picture. Enabling employees with tools that allow them to be productive is also just as crucial for the full cycle to be complete. Legacy technology, multiple software’s for different departments can all hinder their productivity and hold them back. Here are a few measures that can act in your favor allowing for a boost in productivity.

-         Creating a centralized system, where all information is accessed and inputted into.

-         Future proof options such as Cloud ERP for streamlining of business functions

-         Display of reliability, allowing employees to work mobile. 

Agile working conditions:

The measure of today’s “committed” and “ambitious” employee is generally amount of hours they put into work, the one that stays back more after working hours is generally considered the “dedicated” one. However, today’s workforce is changing rapidly along with the mediums they adopt to work.

While the dedication to stay back is really commendable, it simply should not be a measure of “productivity” rather the quality of work should be the factor considered when trying to measure someone’s productivity.

Businesses are rather quickly turning to Cloud ERP software’s due to its ability to create a productive workforce while also equipping their staff to be mobile, without the need to work directly from office; what this means in the long run is that employees can still be optimally functional even when they are not within the office premise and also stay inter-connected with department, track business processes and deliver on their part; all of this while having the flexibility to travel, attend meetings and much more.

Simplifying work, eliminating stress

Cloud ERP softwares are fully capable of automation that was once thought of as impossible, with that being said they can ace redundant and repetitive tasks, get over them rapidly allowing staff to focus more one the core areas and saving them time.

One unspoken added advantage that comes with it is since most time consuming tasks are automated a lot of workload is off the staff which relieves them of all the stress related to it. Labor intensive and time consuming redundant tasks such as data entry, filing taxes and much more can all be taken care of.

In the long time Cloud ERP and ERP automation can actually help improve productivity of employees by allowing them to work to their full potential.

With most businesses that are product-based comes the responsibility of manufacturing.

This also comes with challenges as it turns the manufacturing industry scenario into a ruthlessly competitive one. To keep up with challenges the manufacturers need to adapt quickly. In their search for advents that can help them stay ahead of the competition and keep expenses at a minimum most of them turn to ERP, specifically cloud ERP software.

Why are manufacturer turning to ERP?

The answer, given the functionalities that most ERP softwares are packed with is obvious.

Agility, unification of data, mobility.

ERP allows them to integrate solutions that can help them reduce costs through automation, improve productivity and reduce redundancy, measure discrepancies in advance to divert any possible mishaps through predictive analysis and equip them with a range of robust functionalities for a seamless business processing experience.

Here are a few benefits that ERP can allow in providing a smooth business operation for manufacturers:-

-         Streamlines your business processes: Your business has a plethora of processes going on at any point, which in case of manufacturing is magnified since they are varied processes right from purchase of raw material to finished goods. All of this information needs to be unified and presented on one platform allowing everyone company wide access to the data to ensure mutual understanding between all working staff.

-         Get a 360-degree view of the whole process; With information from across all departments unified and presented in a simplified manner so every employee and individual involved in the process can get a clear view of everything happening within the chain of process.

-         Improve decision making capabilities; while some may argue about an AI’s capability to make business decisions it is important to take note of how businesses across multiple diverse domains have grown into giants with data-driven strategies and most of this data was a result of pattern detections, analytics and other insight monitoring tools, all of which are packed into one tool; ERP.

-         Cost-effectiveness: Through automation, predictive analysis and tools that drive growth, an ERP can help your business drop your expenses. Repetitive tasks such as data entry, tax filings and more that rack up tons of man hours which are ultimately billed and turned into an expense for your business can be eliminated with these an effective ERP system in place.