How to get your ERP out of 2nd gear and into 6th!
As businesses grow, it’s likely new systems and programs will be adopted to align with the changing needs of the business. However, some businesses find themselves making significant investments into upgrades or new systems only to be using a fraction of its capabilities or even worse going backwards compared to their “old system”.
From a financial and business management perspective, it’s important for businesses to have an Enterprise Resource Planning (ERP) system – a suite that helps manage and automate functions like production, stock, sales, human resources and accounting such as MYOB Exo or NetSuite. A number of our clients have engaged us because they have realised the untapped capabilities of the program or more concerningly, the inaccuracies in the reporting they are receiving from these programs.
In our experience, the main challenges when it comes to utilising this type of software stems from a lack of proficiency and quality of training provided to team members to know how to use the program. The other being that the system was not set up correctly to begin with – which might sound unlikely but this includes incorrect set up of reporting systems and stock information leading to missing costs of manufacturing or purchasing. The flow on effect results in two key areas of concern for most businesses – a lack of confidence in their financial reporting, and inaccuracy in stock reporting.
For businesses, changing systems or implementing new software can greatly impact the productivity and accuracy of business and financial information, and its likely there will be teething problems as staff adapt to new ways of working and technologies. MYOB Exo, for example, is a fully integrated ERP meaning while it is great at providing an integrated and unified view of the factors impacting your business, there is also a wide range of functions that, if not properly understood, can result in inaccurate reporting.
It’s the old adage – you don’t know what you don’t know.
It’s one challenge to understand how to do something in a new system, but it’s another to apply what your business does to the system. To have a full grasp of a comprehensive system like MYOB Exo or NetSuite, one may turn to the training provided by them but this training makes the assumption that your business’s processes follow these exact same steps to achieve a certain result. How would you go about a process if it’s slightly outside the standard way? How do you know that what you’re doing is the best way to go about it?
With the ever-easier process of upgrading these systems, you’ll soon find it will improve as it learns the ins and outs of your business. Once you’ve designed a system that gives you the information you need, your business is in a much better place to succeed operationally and financially. Further to this, once your staff know the steps and sequences in which certain processes need to be completed, they can feel more confident that the system will be providing accurate information every time. Key considerations to effectively use an ERP system includes a system review and clean up and staff training which can then translate into a better understanding of the programs systems and processes and subsequently more accurate and useful reports.
CFO Dynamics specialise in maximising the return on your ERP system (such as MYOB Exo and NetSuite) having supported many clients in utilising the system to deliver accurate reports and stock taking, as well as upskilling team members to have a better understanding of the program and its functions to ensure they succeed in their role. We are firm believers in real life application as the best way to learn. CFO Dynamics prides itself on working with clients through actual transactions they face day-to-day and how to integrate the system into these processes accordingly. This does require some creativity at times because there will not be a single system that does everything perfectly the way you would like. With CFO Dynamics’ one-on-one or group training, we ensure each team member knows the most efficient way to do what they need to do and find what they need to succeed in their role, every time! Take a listen to what our clients have to say:
If you do not trust the financial information being provided to you, or you feel there is more you can be doing with your current ERP program, reach out to CFO Dynamics today and we will work with you to extract the information you need to know, and ensure your reporting is not only accurate but valuable in helping your business measure, monitor and improve its current operations.