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8 Ways To Avoid Cashflow Problems In Your Business

How to Avoid Cash Flow Problems in Your Business 3

How to Avoid Cash Flow Problems in Your Business

If you’re going to do well, you’ve got to learn how to avoid cash flow problems in business. Cash flow is the most important thing in business. The moment cash stops flowing, your business starts dying. Just knowing how to sell and market your product is not enough, you also have to learn how to avoid cash flow problems in your business. 

If your business is struggling, here’re some key ways to avoid cash flow problems in your business:

  1. Start tracking your cash flow properly

The first place to check when a business is having cash flow problems is the bookkeeping and accounting system. Some businesses do not track their cash flow. Some do, but they don’t do it well. Therefore, they cannot get accurate and essential reports to monitor and measure cash flow. 

  1. Set up good internal controls 

There are also cases where there is creative accounting. The accounts clerk is the same as the cashier, or there is a link between the two. As a result, they might siphon some cash and not record the financial transactions in the right way. So, management will not get the right financial overview of the business. Separate the two functions and set up good internal control systems to avoid thefts. 

  1. Forecast and troubleshoot financial problems in advance

 Avoid problems by using good business management software and a dedicated accounts clerk to make tracking easy. Make the bookkeeping and accounting work easy with good business management software. Once you have accurate reports, consider doing monthly forecasts and cash flow analysis to troubleshoot problems before they emerge. 

  1. Don’t confuse profits with cash flow

A lot of businesses use accruals accounting. They calculate all sales as a profit. But there are credit sales and cash sales. To avoid cash flow problems in your business, separate profits from cash flow. You can generate profits from sales, yet delayed payments can cause problems in your business. Use the cash flow statement to track, monitor, and manage your cash flow.

Dig Deeper: The Difference Between Cash Flow & Profit

  1. Shorten your cash flow cycle to get payments faster

How long does it take to produce, deliver, sell, and collect the money from your customers? If your business takes ninety (90) days to collect money for goods/services delivered, you might face cash flow problems when suppliers/vendors need money affront before delivery. Can you receive 50% of the money and have the client pay the remaining 50% after completion? Consider streamlining, and shortening the cash flow cycle. 

  1. Invoice customers promptly and develop follow-up systems

 To solve cash problems, develop new account receivable policies, and shorten the cash flow cycle. Send invoices on time, create automatic invoice reminders, chase overdue invoices, use multiple payment options, and consider offering a discount for on-time payments. These are some things to do to get cash in faster. 

  1. Track and manage operating expenses

If you are experiencing consistent losses in business, chances can be that you might have high expenses. Regular tracking and monitoring of expenses can help you cut non-essential costs. You can also negotiate prices to get a good deal and reduce operating expenses. Whichever way, track, manage, and reduce your business operating expenses. 

Dig Deeper: How SAP Business One Gives You Accurate & Deep Insight Into Your Business

  1. Increase your sales 

Constant worry about money can take your eye off the ball. You forget to take good care of customers, implement marketing strategies, and sell more. Always remember that in business, sales equal income. The more you sell, the more money you make. To sell more, increase and intensify your marketing campaigns across multiple channels. When you sell more, you produce more cash flow to grow the business and deal with cash pitfalls.

Having cash flow problems in your business? Request for FREE Consultation. Let’s help your business grow stronger!

 

Contact | The Ageless Center

Follow our Business Food for Thought on our Blog www.multisoftgh.com/blog and share by following our Social media handles Facebook Twitter  LinkedIn.

For Payroll, Accounting & Any Business Management Solution, please don’t hesitate to contact us through our hotlines: +233 (0) 302 23 5149 | +233 (0) 302 247736
Email: sales@multisoftgh.com 

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How to Avoid Bookkeeping Fraud in your Business

The average employee thief has worked with the company for four to five years and that nine in 10 are first-time offenders, reports the Association of Certified Fraud Examiners.

How to avoid bookkeeping fraud in business

How to avoid bookkeeping fraud in business

During recruitment, employers have no screening method that can be used to spot potential fraudsters. The only way to avoid bookkeeping fraud is to put in place internal controls to dissuade, prevent and detect fraud attempts. This is a three-step flow internal control mechanism to avoid bookkeeping fraud. 

 

Avoid Manual Accounting Processes

Businesses with good financial records rely heavily on automated accounting processes to streamline financial transactions from end-to-end. Best practice, use accounting systems with strong security controls to avoid unwanted intrusions. Most of these solutions provide great financial reports and audit trails which gives insight into your financial health as a business. Multisoft Solutions supply and implement robust accounting systems for varying company in different industry segments. The solutions come with strong security controls. Learn more about Accounting systems

 

Avoid One-Man Job Responsibilities 

To ensure proper checks and controls in your finances, avoid the “money guy or lady” accounting approach. Many small and midsized business have single individuals performing all critical accounting tasks—from paying bills, preparing financial statements, issuing paychecks and bank deposits. This is a non-starter as a small business as it creates a one-man manager and could lead to fraud that can go undetected for many years.

As a multiple business management solutions provider, we advise that every financial transaction should go through at least two stages manned by two employees. One for collecting or making payments while the other reconciles the books and ensure accurate financial reports on the transactions. Companies with lean teams may struggle with this approach; however, with the support of Multisoft solutions’ excellent outsourced data entry & bookkeeping services, you can be assured of accurate bookkeeping and streamlining on financial controls so your employees focus on delivery on your core business mandate. 

Multisoft Solutions delivers excellent Accounting support services.

Learn more about accounting support services.

 

Adapt Best Reporting Standards and Processes    

Set clear reporting schedules and internally assign a senior management team member to review all financial reports and processes periodically—it could be weekly or monthly. This will ensure proper checks and reduce the risk of fraudulent attempts such as false entries. This Manager does not necessarily need any skills in accounting auditing. He/ she simply needs to compare account payables/receivable receipt and invoices against the amounts entered in the books. He/she will then cross-check both figures against cash in the bank.   

For tips on accounting management for your business.

Contact sales@multisoftgh.com or call us +233 (0)302 235149

Follow our social media handles and blog for more articles Facebook I Twitter I LinkedIn I https://multisoftgh.com/blog/

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Sage Enterprise Management Financial Reporting Overview

 

Get the Information You Need Just When You Need It.

Sage Enterprise Management Financial Reporting Overview

Sage Enterprise Management provides a large set of features enabling users to analyze data in a self-service manner and to take the right decisions. Realtime analytics, alerts, and notifications empower each role in your organization to respond quickly to changing business conditions.

Reporting and Analytics     

  • User-defined dashboards based on trigger events
  • Configurable inquiries on any data table, with automatic or manual joins, sorting and selection
  • Inquiries to search and filter predefined data collections using a variety of prebuilt parameters
  • Requesters define a data view by selecting from the available fields in one or more database tables
  • Audit trail from cumulative total to detail
  • Library of over 400 reports supplied as standard, including legal reports
  • Automatic printout triggering and generation of Word, Excel, text, HTML, or PDF files

Sage Enterprise Management Data & Analytics provides users with a hub for managing all data from multiple sources, and built-in data models for reporting.

Sage Enterprise Intelligence helps business users reduce time spent on analysis and reporting

Advanced BI powered by Business Objects is designed for customers with very large data volumes or specialized reporting needs

Sage Enterprise Management Financial Reporting Overview

  • Ability to design, distribute, and consume reports through a
  • common Microsoft Excel interface, with the sweet spot being on
  • financial reporting
  • Report on data from most external systems (ODBC-compliant databases)
  • Versions available for on-premise and online customers

 

Contact Multisoft Solutions today for further engagements.

 

Email: sales@multisoftgh.com

Hotlines: +233302235149/ +233501285732

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SAP Business One Seminar

SAP Business One Seminar

CEO of Multisoft Solutions Mr. Justice Lartey, presenting his keynote address on the theme: ” Selecting a Business Management Software in a Volatile Business Environment”

 

SAP Business One Seminar

SAP Business One Seminar

                             Mr Nkansah-Adade, Financial Director of Multisoft Solutions

 

Lolita Aguele of SAP                                                             Felicia Agbodan, Director at Multisoft Solutions

Walid Belahmer, Business Development Senior Specialist|SAP Business One, SAP North & West Africa, doing a detailed presentation on the topic: “Creating Value for African Companies in the Digital Economy.”

 

SAP Business One Seminar

                                  

A deep dive demo on the amazing functionalities in SAP Business One ERP presented by Dennis Hatsu, Senior Consultant at Multiosft Solutions.

SAP Business One Seminar

A cross section of the over 35 business representatives who benefited from the Seminar.

 

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Choosing the Right Business Management Software For Your Small Business

Choosing the right Business Management Software for your small business can be very daunting given the vast number of available options. Some of these numerous solutions might offer just barely enough for your present needs, but you’ve to keep in mind your future needs, whether you anticipate them or not.

Certainly, there are some solutions that are indeed “one-size-fits-all” in that, they are flexible, adaptable and scalable, and are designed to not only accommodate but cope with business evolution. You want your small business to grow, after all, and you never know what’s around the corner, especially in this fast moving business space.

SAP Business One is one such turnkey solution to consider, since it comes with excellent features that allow you to gain greater control over your business. It allows you to streamline your business operations while providing you with real time reports.

The right BMS will make the most intricate operations simple for your business and SAP Business One is designed to do just that. It’s a comprehensive solution that covers virtually all aspects of your business including finance, logistics/operations and customer relationship management.

Currently, SAP Business One has more than 46,000 customer that are serviced by 1500 certified SAP Business One partners, covering more than 25 different industries in 120 different

countries, according to BLUEKEY, one of the world’s leading SAP Business One Partners. This is evidence that SAP Business One has worked for many companies just like yours

As a small business, making a wrong choice in the usage of ERP software can be very dangerous. You possibly stand the bad chance of losing revenue and depriving yourself significant business growth. It is always advisable to look out for software that has these features: Configurability Fluidity , Simplicity , Scalability and Integrability 

Truth be told, as a small and growing business, it’s important to achieve some quick wins while automating your first business process, and then have the flexibility to make changes easily in order to adapt to the evolution of your business both in size and in complexity. SAP Business One is in anyway built with this objective.

Choosing the right Business Management Software for your small business can be very daunting given the vast number of available options.

Choosing the right Business Management Software for your small business can be very daunting given the vast number of available options.

As a small business, looking for an opportunity to grow, your focus must be on solutions that can help you manage your key elements of business: People, Business processes, Workflows & Tasks, Data and Collaboration.     However, you do not need pricey software that would break your bank account. So adopting what I describe as “Buy low, Use high” strategy will forever be the best for your business. With this strategy your attention must be on both quality & price.

Your budget may not be enough but you certainly do not want just any software. You’re looking for a robust ERP software solution that can exceed your business expectations. Your attention should therefore be solutions that offer high affordability and quality. This is the reason why SAP Business One has been ticked as the ideal ERP solution for both small, mid-sized and Enterprises.

Multisoft Solutions Limited is a leading business partner of SAP implementing SAP Business One ERP solution for many businesses in Africa. Request a Demo

 

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Will Accountants Be Replaced by Computers?

Will Accountants Be Replaced by Computers?

Emerging innovations may disrupt accounting and Auditing such as robot process automation (Bots) and mechanical robotics   (Daniela Rus, “The Robots are Coming,” Foreign Affairs, July/August 2015). 

 The use of computers for business operations has come to stay. In fact, computers have already become ever-present in our world of business today, and in the near future mechanical robotics will as well be seen sitting in the chairs, in our offices.  

The debate about whether or not machines will replace accountants in the near future is the result of the sudden increase in demand for various business software solutions like Sage Evolution Premium and SAP Business One for business operations the world over.   

 

Accountants Blog img

 

Accounting Software experts argue that the profession stands on the cusp of technological development however conservative accountants disagree and argue that programs like VIP Premier Payroll & other sophisticated tax systems work quite well, but have no ability to make deep decisions especially when confronted with unstructured data.  

Valid arguments they are!  Maybe in the near future, we will see fewer accountants of one type and more of the other. ‘If history tells us anything, there were speculations of job losses when spreadsheets and computers were introduced into the accounting  process, but instead we saw significant growth of jobs in the accounting departments. It is certain that how we perform the work and the skillsets will change, but this will create new opportunities.

The future of accounting hinges on outputs and not inputs. Business owners will invest in any legitimate resources that can enhance the bottom-line results even if it’s just simple software.    

 

SAP Business One - All platforms

 

 

Over the past 10 years, a lot of businesses have shifted from manual accounting processes to automated operations. For instance, the advent of Sage one accounting, VIP Payroll and SAP Business One, is saving companies more money while doing more work. No need to hire more accountants. 

But as with any transition, there will be a distribution of adoption, so some people will scream saying that their jobs are at risk, but more likely is that they got blindsided and failed to invest new skills. 

“To be on the safer side means rising to the change and embracing the transition with a smile – invest in tech skills and stay open for the opportunities that come along with this evolution”     

 

Sage Logo

 

 

I believe that development in technology has only brought even greater opportunities to accountants.  Despite the smart business operations performed by a computer, a company will also need a brain which can devise strategies required to bolster its financial growth.

 Will Accountants Be Replaced by Computers? Therefore, lies on accountants to be agile, versatile and open to changes. They will need to fasten their belts and fly even higher.  

 Be open to tech knowledge in accounting. Enroll in our flagship programme:   Practical Accounting Training.  

 

2018 PAT Poster

 

 

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The Role of Technology in Reinventing a New Era for Accountants

Blog img

Summary of Research Carried out by IMA, ACCA and the Accountancy futures academy (Nov 2013)

The accounting profession is in the midst of a technology revolution, with cloud computing, mobile devices, social media, Big Data and Payment tools making the most impact.  Our discussion for this morning will be centered on five out of the ten game changers identified in a survey carried out by ACCA and IMA.

The report on the survey is titled DIGITAL DARWINISM: THRIVING IN THE FACE OF TECHNOLOGY CHANGE

 According to Charles Darwin’s On the Origin of Species, it is not the strongest of the species that survives, nor the most intelligent, but the one that is most adaptable to change.

 As trusted advisers to business, accountants and finance professionals are expected to lead, not follow. The profession has historically been quick to identify and then exploit the potential of emerging technologies: from the earliest known records of commerce, to the earliest commercial computer systems. Accountants’ enthusiastic use of the first programmable computer and widespread adoption of the spreadsheet helped to turn accountancy into the profession it is today. Embracing emerging technologies will turn it into the profession it aspires to be tomorrow.

Whiles discussing these trends, we must all be mindful of the fact that the cost of connectivity will continue to go down due to better platforms like 4G as against 3G and also the release of frequency being used by analog TV and Radio.

ACKNOWLEDGEMENTS

I will like to acknowledge the research team IMA, ACCA and the Accountancy futures academy for carrying out this research.  I will also like to acknowledge Chris Gentle (Partner and head of research Deloitte) for writing the foreword to the research.

According to Chris Gentle  “ As we head deeper into the 21st century, it is already clear that developments in digital technologies are going to affect the world even more radically over the next 20 years than in the last 20 years.

Technology has already made business global. We can collaborate and share information as quickly and easily with business contacts on the other side of the world as with colleagues at the other side of the building.

As new digital technologies emerge and converge they will reshape lifestyles and business activities, how economies develop, and how countries are governed, in revolutionary ways. The future will not be like the past and we will all need to adapt. Accountants and finance professionals must be open to the changes created by cloud computing, mobile devices, payment gateways and social platforms, and face up to the demands of cybercrime and enhanced compliance request.

Research Findings

Eight-seven percent of the accountants surveyed said that their companies could be doing more to leverage technology, but fewer than 15% said they were very confident in the ability of their companies to understand and manage emerging technologies.

The survey found that most companies do not have a written plan for emerging technologies. Only 4% of small companies (fewer than 200 employees) have such plans, compared with 35% of midsize companies (201–500 employees) and 46% of large companies (500 or more employees).

Companies are far from adopting, or preparing to adopt, new technologies. For example, 90% of large firms either already have implemented or will implement social media and smartphones within three years. Also quickly becoming part of the technology foundation for large companies are cloud and software as a service (84%) and tablets (74%).

Smartphones top the list for midsize companies (71%) and small companies (62%), with the cloud ranking second for both (67% for midsize companies and 46% for small companies).

Cloud and mobile

Cloud computing and the use of smartphones and tablets are tightly intertwined.  The survey identified the following as potential benefits from cloud computing:

  • The ability to work anytime, anywhere;
  • The ability to serve clients in any location;
  • Improved security and backup procedures;
  • Improved collaboration with clients and supplier.

 

Mobile devices, of course, are ideal for connecting to cloud-based services when out of the office, a scenario becoming increasingly common in the accounting profession. More than 80% of accountants reported that they do at least some work outside the office, with the number of hours worked ranging from an average of 5.8 for accountants at midsize companies to 8.6 for accountants at large companies (accountants at small companies averaged 6.5 hours out of the office).

The most-cited reason for working out of the office was client/supplier visits, both local and out of town. Also popular was doing work from a home office. The use of mobile devices with the cloud creates opportunities for accountants to provide faster and more efficient client service.

In addition to improved client service, the top reasons for adopting mobile devices include increased productivity and improved work/life benefits.

Eighty-five percent of accountant’s at large companies reported using a smartphone, a note book , or both, compared with 71% at midsize and 50% at small. A plurality of accountants use smartphones but not notebooks , and the survey participants were much more likely to use both a smartphone and notebook  than just a notebook. Accountants at large companies use the most mobile apps, an average of 5.4 each, compared with 4.3 at midsize and 2.3 at small.

 

Social media

Accountant’s in large companies spend nearly 7 hours a week, on average, using social media for personal activity and 5.6 hours for professional purposes. At midsize firms, the averages were 3.8 hours and 2.9 hours, respectively, compared with 3.3 and 1.8 at small firms.

LinkedIn ranked as the most popular social media tool for professional use. Following is a ranking of the most popular social media services for individual accountants:

  • LinkedIn (68% among large firms, 74% among midsize firms, 70% among small firms);
  • Facebook (64%, 50%, 61%);
  • Twitter (42%, 21%, 9%);
  • Professional online communities (28%, 19%, 16%); and
  • Blogs (23%, 10%, 12%).

At the company level, Facebook is the most popular social media tool among midsize firms and tied with LinkedIn for the top spot among large firms. LinkedIn is the preferred social media choice of small firms, but only slightly ahead of having a firm presence in professional online communities.

The professional benefits of social media cited most often by survey participants include:

  • Knowledge sharing;
  • Interacting with other professionals in accounting;
  • Generating new business;
  • Finding new clients; and
  • Interacting with other professionals who can support the business.

Big Data

Data analysis skills appear to be a huge potential growth area for accountants, 67% of whom in the survey said that they expect Big Data to impact the accounting profession.

Why is Big Data such a big deal? One reason, the study reported, is the astronomical increase in the amount of information being produced, a growth fueled in part by social media.

“There’s no question that social media is contributing to the demand for better data analytics,” the study reported. “Facebook has more than 1 billion users and Twitter can easily exceed more than 400 million tweets in a given day. That’s a lot of data, but only a limited amount is relevant.

“The biggest challenge companies have today is how to mine all that data to better and more profitably serve their customers,” the report said. This challenge can create opportunities for accountants. The role of data scientist is a natural fit for the accounting profession  and plays right into one of their strongest skills.

Payment Systems

Traditional notions and concepts of money and currency are fading. The use of cash is diminishing, cheques are being phased out and use of debit cards, pre-paid cards and the myriad of alternative electronic payment platforms is increasing. Banks increasingly provide their services online; statutory payments are increasingly made electronically; payment options using mobile phones are proliferating; there are many ways to make and accept payments for goods and services and to access start-up and working capital finance and trade finance instruments.

Virtual currency

There are virtual ‘digital currencies’ such as Bitcoin, Linden Dollars and Ripple in today’s marketplace. A virtual currency has a value in real-world currency and/or can be used to buy goods and services. The Linden Dollar is the unit of trade in the virtual world , where players can use it to buy and sell goods. In addition, Linden Dollars are a centralized virtual currency with a central repository, and it can be converted to and from real-world currencies.

Skills needed for next decade

Rank Skill Standard Score
1 Knowledge of data extraction tools in the mining of business intelligence 75
2 Use of tools that support data modeling and analysis 72
3 Knowledge management skills 59
4 Project management skills 57
5 Change management skills 57
6 Knowledge of new approaches to funding and product development 57
7 Ability to use technology to attract, develop and manage talent 57
8 Knowledge of emerging payment platforms 56

Conclusion

Accountants and finance professionals have a significant role to play in the increasingly connected and interconnected ecosystem that will emerge as  technologies in this report come together to create the ‘new normal’.

The internet and cloud-based resources are reshaping various aspects of business. : from the way we finance, resource and develop new and existing enterprises, to the way we create, buy and sell products and services. Nothing in the future is certain, and the unforeseen interactions between these technologies promise to be both interesting and challenging.

 Summary of findings

Technologies Key impacts and implications What we have to do as accountants

Mobile /Cloud

Big data

Cyber security

Payment systems

Educational technologies

Social technologies

·         Faster and easier access to technology resources

·         A more connected world and workforce

·         Opportunity to automate more business processes and services

·         De-skilling of the accountancy profession

·         Vast amounts of data

·         Enhanced compliance and decision-making

·         New ethical challenges relating to data gathering and analysis

·         Challenges to data security and sovereignty

·         Challenges to traditional role of the profession

·         Expectation of access to accounting  resources 24/7, on any device, anywhere

·         Separation of skill and expertise from professionals

·         Explore new ways of establishing costs

·         Prepare for changing working patterns

·         Assess risks and address security

·         Plan timing for adoption and implementation

·         Develop change management skills

·         Enhance data analysis and interpretation skills

·         Recruit digital natives

 

·         Use technology to add value

·         Anticipate new regulation

·         Learn enough to know which questions to ask to gain insights

·         Adapt to meet changing business needs

·         Manage expectations of internal and external customers