Tag Archives: analysis

SIMMS 2013’s General Ledger

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SIMMS 2013’s General Ledger has many enriched features such as flexible accounting periods, maintenance of non-financial information, a comprehensive search criteria, allocation entries, and view information as graphs and bar charts. When your business relies on accurate and timely general ledger and accounting data, your obvious choice is SIMMS 2013 Inventory/Accounting software.

The maintenance of multiple departments or companies using various currencies and tax regimes is simplicity itself. Fully integrated to the rest of the feature-rich SIMMS system, General Ledger not only collects all data, but also allows you to view it in any form you would like. Multi-currency transactions are kept easy and immediate through SIMMS’ use of a central currency table.

With the versatility of SIMMS 2013’s General Ledger you can:

• Add and edit credit card and bank accounts

• Add new divisions or companies with speed and ease

Complete complex General Ledger tasks while being fully integrated with all of SIMMS 2013, providing comprehensive company management with vital insights

• Conduct Branch Management and Multi-Company smoothly

• Conduct unlimited financial reporting, using financial statements and supporting schedules to help you make vital decisions

• Create budgets by account or by entity (annually or by period)

• Design financial statements into your preferred formats

Enforce and maintain General Ledger budgets including the transfer of budget sums between accounts

• Employ simplified departmental/divisional income statements and standardized report formats

• Enjoy a flexible Chart of Accounts structure, suited specifically to your business needs with up to thirty characters and ten segments, or, select one from over a dozen industry-specific structures

• Enter deposits and cash/cheque/credit card transactions

• Organize default distribution of periodic entries

• Transfer funds at any time

• Reconcile cash/checking/credit cards easily with complete accuracy


• Recreate the distribution of any entry

• Retain data permanently from the very first day

• Select and summarize data for any specific General Ledger account

• Summarize accounts by category across multiple companies or divisions


For your varied and complex General Ledger requirements, visit www.simmssoftware.com or email sales@kcsi.ca today to learn more about how SIMMS can suit your company.

Reorganization of Your Business Concerns

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When your business is trending new of late, re-assessment may not be enough of a solution. If the changes in your market share have been more drastic, then it is likely a re-organization is required.

Some indicators of a needed re-organization are:

1) That your most important decision processes are too vague or too complicated, and waste more resources than they produce.

2) Changes to important personnel either dilute the energy of the company or alter the rhythm of business standards.

3) Competition has become stronger from new sources or a new business model has been adopted by a chief competitor.

4) For three consecutive quarters there has been diminished financial returns. At such a point, some drastic moves are needed instead of the piece-by-piece adjustments you had made previously.

Re-organizations should be implemented methodically and with a positive tone. Despite any panic you may feel, the message and the way it is delivered to your staff must be from the mindset of building and improving.

SIMMS 2013 Inventory Management software can help you achieve the goals you have for your company. Visit www.simmssoftware.com or email sales@kcsi.ca for more information.

SIMMS 2013 and Sales Data

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As SIMMS is adopted for use, sales analysis information will become readily accessible tools, improving decision-making and profit analysis. The conduct of sales transactions, filling of backorders, and transfers of stock to where it is required enables SIMMS users to make improvements to sales campaign and inventory management criteria.

Requests for quotes (RFQs) and order placements are quick since necessary information either already exists in the system or is provided on-the-spot. Shipping information, costs, available inventory, prices specific to the customer, status of ordered items, and quantity pricing is all at hand on a single screen. SIMMS’ sales information is there where it is needed so that important decisions and processes can be implemented to maintain efficient service and accuracy for the benefit of both your business and your customers.

Sales order and quote histories are available, keeping information readily available for sales staff during calls and communications with customers. Exact stock details make sales history a useful tool to allow customer satisfaction to remain a primary goal. Consequently, warehousing personnel can easily process shipments, track their contents and provide all answers to all questions that may arise.

Sales performance can be compared across countries, competitors, therapies and products—all segmented by distribution channel. Follow trends. Keep track and see what’s happening on a longitudinal scale. Again, pricing intelligence and tracking and analyzing your data in an ongoing way allows you to have both the facts and the feel for what’s happening, which will make better prepared to deal with what’s coming.

To learn how SIMMS can help you stay on top of what your sales pattern is saying, visit www.simmssoftware.com or email sales@kcsi.ca today.

Two Questions of Stock Accuracy

A worker counting the ready products stacked on the shelves in a factory storeroom.

Any company that hopes to have a continuously-accurate shelf count that matches its record count needs to prevent all unauthorized personnel from physically interacting with stockroom/warehouse contents. Further, personnel who are authorized must have a paper- or computer-based document before placing anything into (or removing anything from) storage areas. These two points are crucial to the maintenance of inventory accuracy.

Often, items’ physical lives in storage become separated from their paper/record lives, and people begin to ship or use products that have not been received, or put away products that have not been received so that no one knows that they are available for sale or use. These improprieties create an environment where inventory personnel and accounting personnel are making numerous adjustments to the record count. In a sound system, its design and processes must immediately disallow such occurrences.

In advance of the implementation of methods to reveal, analyze, and repair any discrepancies between actual on-hand inventory levels and system record levels, you must take a precise snapshot of the current state of inventory. Two sets of numbers are needed for the assessment to be both useful and accurate: 1) An inventory record accuracy (IRA) and (2 The Fill Rate.

IRA is a reflection of how well your shelf count and record count match. It answers the question of how well your stock records reflect the stockroom’s actual contents.

The Fill Rate is a reflection of the effectiveness of your inventory. It answers the question of how often you have inventory that you need at the moment you needed it.

These two questions can not only be applied when every stock count is performed but also may be applied at the level of every transaction. In fact, basing adjustments to your stock system on these two criteria can only help you achieve a more accurate and precise process. SIMMS Inventory Management software can help you make all the right decisions based on all the significant analyses it contains. For more information on SIMMS 2013, visit www.simmssoftware.com or email sales@kcsi.ca today.

Inventory Turnover and SIMMS 2013

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The investment of any business’ success relies on their inventory. Inventory turnover is a ratio showing how many times a company’s inventory is sold and replaced over a set period of time. If your inventory is perishable goods then your goal is to have a higher (faster) inventory turnover rate. The importance of high inventory turnover is relied upon to generate revenue AND produce satisfied customers.

Inventory turnover is a crucial detail of management efficiency. It is a measure of how often, during a course of a year, a company sells and replaces its inventory of component parts, materials and final products. As a general rule, the higher the inventory turnover rate the better it is for the business. Management must be sure to monitor all products, and guarantee that all unsalable products are pulled from the shelves.

Inventory is listed as a current asset on the balance sheet, and therefore your inventory’s valuation can directly affect your current asset value and your overall total asset balance. The increased fill rate of an item develops a well-managed inventory list, and a well-maintained items list must be monitored carefully to avoid shortages of frequently used items and/or “stock-out” situations for any goods in your system.

SIMMS 2013 Inventory Management software has every tool you need to maintain your company’s utter control of stock items, and analyze how each item is doing in regard to turnover and ultimate profitability. Visit www.simmssoftware.com or email sales@kcsi.ca for more information.

Inventory by Exception: The Road to Ruin

A number of companies employ a method of inventory counting known as Inventory by Exception. In this practice, companies make confirmations of items when they are handled (known as “touching”). These touches are made note of roughly and make this method an antiquated and inaccurate practice in today’s world of precision and technology.

Items that often fall under this practice of fleeting inventory are:

items that are the most recently acquired (and thus fresh in memory),

items that are attached to the in-house computing network (such as backup drives, new network routers or harddrives, etc.),

items shipped away to be repaired or upgraded,

items that receive routinely-scheduled maintenance or have settings adjusted and monitored),

items that are shared or pooled or transferred from zone to zone (warehouse to warehouse, room to room, department to department)

Too often these stock pieces are tracked by someone’s “mental note” and are never counted as part of the stock, but all assets (and its usually assets like these that are counted in such a cavalier fashion) need to be tracked. In order to prevent items disappearing and being replaced with older and imperfect substitutes, EVERY item must be tracked precisely and recorded formally in a networked software inventory system.

Whether it’s a fire extinguisher, a desk, a tub of assorted nuts and bolts — EVERYTHING must be counted, and all practices of Inventory by Exception must be replaced.

For more information on automated and modern stock management, visit www.simmssoftware.com or email sales@kcsi.ca.

Checklist for Your Stock Improvement

The best systems of inventory management all contain a particular series of criteria that make them both efficient and worthwhile. When one considers that improvement of your inventory management system by as much as 15% can affect your profit margin by over 30% minimum, an intelligent structure and “practice” of sound policies should be the least that you do.

The criteria are as follows:

Systematic Inventory Updates-
Operation of proper perpetual inventory system should be used so that it is possible to determine at any time the amount and value of each kind of materials in stock. It also enables the comparison of book inventory with the result of physical counting.

Control of Stock Areas and and Sales of Product
The proper operation of a system of stores control and issue is introduced so that there will be delivery of materials upon requisitions to departments in the right amount at the time they are needed.

Checks and Balances
The operation of internal check should be introduced to ensure that transactions involving materials and equipment are checked by reliable and independent officials.

Establishment of Controlling Accounts and Subsidiary Records
Controlling accounts and subsidiary records reveal  summary of detailed materials costs at each stage of materials receipt and consumption from the storeroom to finished goods.

Regular Reports
Regular reports and information should be provided for the management in connection with the purchase of materials, issues from stock, inventory balances, obsolete stock, goods returned to vendors, and spoiled of defective units.

Standards or Level to be Fixed
A minimum quantity of each item of materials, below which point the inventory is not allowed to drop, and a maximum quantity, above which stock is not carried should be fixed. In the same manner ordering level and economic order quantity may be determined.

If you are planning to consider a modern and feature-rich software application to manage your stock, please review the above sections and devise what you need, then visit www. simmssoftware.com or email sales@kcsi.ca to get help with taking your first cohesive steps toward increasing your business success.

Improving Your Gross Profit Margin


Profit is the vital factor in every company — it opens many avenues of expansion and contributes to the solution of almost all problems. SIMMS 2012 Inventory Management software helps you manage your profits by revealing your business’ gross profit margin.

A company’s gross profit margin is an assessment its efficiency in securing overall profit once the expenses of the cost of goods sold have been deducted. A higher GPM is more encouraging for the company — and any investors — in regard to its future earning potential. The control of overhead (including rent or mortgages, utilities, etc.) is crucial to a company trying to improve its GPM. The formula for its calculation is as follows:

GPM = Gross Profit ÷ Total Revenue

For illustration purposes, let’s calculate the gross profit margin of Company One based on numbers from its income statement:

$180,000.00 gross profit ÷ $420,000.00 total revenue = 0.42

Therefore, the gross profit margin for Company One is 42%, which is very good.

Several areas in which a company can improve its GMP are as follows:

1) Reduction of Administration Costs – management personnel overhead is the concern here. Again, the work done versus the expense to achieve the work is the ratio to be used here.

2) Reduction of Cost of Sales – there are expenses related to the sales of products or services, and can be reduced by selection of a less expensive labor force or purchase of less expensive materials.

3) Reduction of Debt – this can be done through finding and employing lower interest charges and any other structured financial advantages that can be achieved.

4) Reduction of Development and Research expenses – this should be rolled back to its level of return efficiency. Many businesses accept expenses here in the belief that speculation works best, but it should be based on returns from each separate project and its revenue generating potential.

5) Reduction of Effects of Depreciating Stock – Newer, more reliable items must be purchased and older pieces must be converted in any way possible to a minimum of what was spent to acquire them.

6) Reduction of Marketing Expenses – either a lowering or discontinuation of aspects currently employed toward advertising.

Visit www.simmssoftware.com or contact KCSI by email at sales@kcsi.ca to discover more about how SIMMS 2012 Inventory Management software can help you achieve your profit margin goals.

What’s On Your Critical Checklist?

Recently a great number of successful businesses were requested to list the most important steps they had taken to improve their company in the previous twelve months. The resulting details can be applied to any company (with necessary adjustments for their respective industries or specialty services).

Ask yourself which of the following can be achieved by your company and then take steps to make the changes possible; if any business can improve on half of these areas, everyone will notice the improvements in the business.

So here (in alphabetical order) they are — twelve months, twelve improvements:

  • Accelerated turn-around time of orders

 

  • Created a more effective organizational structure

 

  • Improved order accuracy

 

  • Increased flexibility and agility

 

  • Increased productivity levels

 

  • Leveraged valuable information

 

  • Maximized the value of the contents of the warehouse by turning over every item a minimum of at least three times per year

 

  • Optimized work schedules

 

  • Prevented disruptions from shift-to-shift

 

  • Provided real-time interaction

 

  • Streamlined decision-making

 

  • Tracked performance updates

 

Now you know them, pick one and get on with it!

Information is the Currency of Inventory Management

As is true in any business, information is the most valuable commodity of use to every department. This is especially true of inventory management because when numbers are wrong regarding stock, the company’s profit margin itself could be diminished significantly. When you apply a policy regarding data and its accuracy within your company, there are many ways that owners and managers can improve the standards that they now employ.

First, the employees must support and be involved in the steps being taken in the improvements. Getting the support of employees across the warehouse and getting their feedback about the organizational structure of the warehouse so that the system changes become both logical and applicable. Managers have as one of their most important tasks to make sure that necessary and accurate information is made visible to all the right people. Employees should receive daily performance feedback to aid in driving process changes and to create better alignment throughout various warehouse activities.

The company needs to provide employees with varying access to performance metrics. It is important to have various roles and security in action to ensure that data is shunted to the necessary personnel while not inundating them with unnecessary information. The speed of access is important and the goal is toward making it useful and avoiding it being only considered a secondary afterthought. Electronic information, either through e-memoranda or display boards, can enhance floor operations and back-office procedures. Such are wonderful tools for increasing the use of performance data as well as supplying incentives to establish and create momentum for the newest activities and plans.

Information flow in both “directions” is invaluable and companies need a foundation from which to manage the information exchange. SIMMS 2012 Inventory Management software enables you to manage both data and performance of your business. Visit www.simmssoftware.com or email sales@kcsi.ca for more information.