Month: June 2023

Most people tend to use the terms bookkeeping and accounting interchangeably; while the two are related, there is a slight difference between the two.

Businesses need their financial data to be accurate and current to be able to make the right decisions and ensure a good cash flow.

When your business grows, your clientele, employees, customers, vendors, and consequently the number of transactions grow manifold, it can become difficult and time-consuming to monitor the money entering and leaving your business.

The tasks may become too much for just a bookkeeper to handle, and you will need an accountant also.

Of course, eventually, even these may not be able to do the work by themselves.

But why a bookkeeper and accounting?

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The Difference Between Bookkeeping and Accounting

A bookkeeper maintains records of the financial transactions that take place in a business everyday – sales, purchases, bill payments, and so on, categorizes them, recording them as debits or credits in various accounts.

In bookkeeping, the focus is entirely on keeping accurate records.

An accountant depends on information recorded and submitted by the bookkeeper, reviewing and analyzing the financial records, and interpreting the financial information for the business.

Accounting transforms records into data that can be reported and presented, so that owners and managers can use it to make informed decisions and make financial forecasts.

In other words, we can say that bookkeeping is the preliminary function to actual accounting.

The accountant prepares quarterly, half-yearly, or annual reports after thorough analysis and review.

They check that all accounts have been properly categorized.

Bookkeeping and accounting includes preparing the profit and loss statement and the balance sheet; every country has specific standards or rules regarding how the annual accounting statements and reports have to be prepared, with which the accountant has to comply.

Let us now look at both functions in some detail.

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Bookkeeping

Bookkeeping is the process of consistently recording the everyday financial transactions, like sales, cash, and bank transactions, expenses, and also payments in the ledger.

This activity is referred to as posting.

Bookkeeping can also include generating invoices and payroll for the business.

The size of the business and the types of accounts it handles, determine the bookkeeping activities to be performed each day.

Bookkeepers are responsible for ensuring that financial data is recorded, treated, and presented accurately.

Bookkeeping Tasks

• Recording daily expenses, sales, cash transactions, bank deposits, cash incomes
• Preparing cash flow statements
• Payroll processing
• Generating invoices
• Monitoring debts
• Paying invoices of vendors and contractors
• Reporting issues that occur
• Help accountants in tax calculations
• Account reconciliation
• Maintaining the yearly budget
• Ensuring the books of account are current

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Accounting

Accounting involves storage, retrieval, summary, interpretation, and presentation of bookkeeping data in the form of analyses and reports.

Accounting evaluates cash flows, assets, liabilities, and the financial position of the company in the near future.

Accounting has a broader responsibility and is more concerned with financial reporting and analysis.

The chief aim of accountancy is providing critical financial information to stakeholders like investors, managers, and owners, enabling them to strategize and take informed business decisions.

Accountants perform financial analysis and interpretation to generate sophisticated reports to determine the financial health of the business as of now and likely position in the future.

One can compare accountants to doctors – in finance.

They check for symptoms and prescribe the best path of action to improve the financial health of businesses.

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Tasks are Undertaken by an Accountant:

• Preparation and analysis of financial statements like profit and loss and balance sheet
• Analysis of operations costs
• Completing income tax returns
• Recording the expenses that the bookkeepers omitted
• Supervising the work of bookkeepers and ensuring that transactions are recorded and categorized correctly
• Giving stakeholders an understanding of the financial health of a business and delivering strategic information

Any business event that has a monetary element to it is called a transaction – like purchasing materials from vendors, paying salaries, receiving money for sale of goods, etc.

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Financial accounting operates on the following fundamental principles:

• Objective – financial statements must be unbiased
• Usable – financial documents must be easily understood and aid decision-makers
• Material – documents must be complete and accurate
• Comparable – statements must follow international standards and allow comparison of similar companies

The Need for Accounting

Accounting begins with bookkeeping and culminates in reporting and recording of information in the form of financial statements at the financial year-end.

It facilitates the following:

1. Cash flow Monitoring

Maintaining proper books of account helps in keeping an eye on cash requirements, working capital, and so on, and gives you a clear picture of the financial health of your business.

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2. Business Performance Tracking

Thanks to bookkeeping, you have a meticulous record of financial transactions for each financial year which shows you the company’s financial health and allows comparison of financial performance over a few years.

You get to know how your business is doing, what the situation is with the expenses, possible debt, gross margins, and so on.

This helps in proper budget allocation as well.

3. Streamlining Future Objectives

The accounting data you accumulate over the years helps in strategizing and create budgets for the future considering specific objectives.

It also becomes simpler to evaluate the various financial reports and charts necessary to conduct routine business operations.

4. Faster Decision-Making

Proper reading and understanding of accounting information facilitates accurate decision making and enables formulating policies that help your company become more efficient and productive.

For example – it can help you in your pricing decisions and determining resources required to produce those goods or services.

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5. Easier Auditing

With proper accounting knowledge, you can better understand the intricacies of your business.

You will be able to interpret the financial statements like the profit and loss statement, balance sheet, etc., and make decisions for business growth.

It also prepares you for audits and helps have a smooth process.

The Need for Bookkeeping

Bookkeeping and accounting form a solid base that allow the smooth functioning of business operations.

Bookkeeping is a critical function for a business whether it is a startup, an enterprise, a small business, or a mid-sized one.

Failing to record financial transactions properly gives rise to improperly managed accounts, and poor financial management, which can affect the business negatively.

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Proper bookkeeping facilitates:

1. Improved Financial Management and Analysis

Improper management of accounts and disorganized cash flows can be a big headache for business owners, and hamper decision-making too.

But with accurate bookkeeping, you can ensure everything is current and ordered, like vendor payments, invoicing, follow-ups, and more.

2. Tax compliance

Bookkeeping plays an important role in helping organizations maintain compliance with tax regulation, and stay abreast of changing laws, submitting the correct information, and preparing documents to fulfil tax obligations.

When the bookkeeping is accurate, you have all reports, bills, and invoices in one place when you have to compute tax liability.

With all the information in your balance sheet, you can also discover ways to save tax.

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3. Simpler planning

Regular and meticulous bookkeeping can help you plan your business activities in such a way that it benefits the business.

You have financial details at your fingertips, and get to check the progress – is it on track for growth, or you need to correct the course?

4. Investor Reporting Made Simple

Bookkeeping provides charts and graphs of data that make report generation simple.

This conveys important information to investors and other stakeholders about your business in a clear and concise manner and helps to build trust.

Why You Need Accounting Software

The days of complete manual bookkeeping and accounting are in the past; today even tiny businesses and startups are moving to using financial accounting software.

This is for the simple reason that software offers innumerable benefits compared to manual methods.

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Let us see what they are.

1. Enhanced Accounting Accuracy

By eliminating manual effort, accounting software also minimizes the chances of calculation errors.

In manual bookkeeping, many calculations are performed by the employees, increasing possibility of error.

A simple error early in the process could snowball into a huge one towards the end of the accounting period.

This possibility does not exist when you use computers to calculate; yet, human error could still creep in through erroneous data entry, and you must be careful in that regard.

2. Increased Speed

Obviously, software works much faster than human beings, and as such, the accounts of a business can be processed much quicker.

The software also brings in greater efficiency with automation.

For example, you can configure the solution to record the tax component of each sales transaction automatically, instead of having an accounts employee do it manually at a later time.

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3. Cost Reduction

When there is greater speed and efficiency, it is natural that your overall expenses will be automatically lowered.

Your accounts team can also accomplish a lot more in a specific time period, allowing them to shift from mundane tasks to more value-adding ones.

You will also not need to have a huge team to do the job.

Either way, you can bring down the expenses associated with administration and accounts payroll.

Of course, you will have to compare the savings in cost with what you have to pay for the software itself.

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4. Robust Reporting

Tranquil’s accounting module delivers accurate and time-bound financial information to relevant teams and managers – whether it is cashflow reports for the finance manager, or tax computations for the auditor.

Our software allows you to generate a wide suite of reports based on varying parameters thanks to its in-built reporting module.

All it takes is a few clicks or filling up a simple form and you can have reports in seconds.

The same task would take you several hours if attempted manually.

5. Simplified Tax Filing

Calculating and filing your taxes is a complicated process which necessitates keeping tabs on every business transaction.

Thanks to Tranquil ERP’s Financial Accounting module, this becomes a breeze, as all financial details are available in a single place.

We can also tweak the software to include any specific functionality your business may need.

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Implementing a cloud-based accounting solution like Tranquil will deliver innumerable business benefits for your company. It is secure, fast, reliable, and streamlines your accounting processes. Schedule a FREE demo to know more.

 

The market is more competitive than ever, in spite of the threat of recession looming large in some parts of the world.

It is highly probable that the market will continue to be volatile for some time to come, increasing pressure on small and emerging asset managers to adapt or perish.

Companies now have to re-evaluate mo­dels of operations urgently, and think about ensuring their services can stand out.

This is especially so thanks to rapidly fluctuating demands of investors and the constant pressure on fees.

So, what’s in store for 2023 and beyond?

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Asset Management Trends 2023

Let’s take a look at some of the asset management trends for the year.

1. Soaring Inflation

Inflation is at a high that’s not been seen in decades, and it is affecting the cost of operations for asset managers, be it salaries, data expenses, or technology.

This means that asset managers have to rethink operating structures, processes, and the technology component in the cost of ownership, in order to keep a lid on costs.

Increasingly, companies are thinking of outsourcing activities like risk management to external service providers, to improve efficiency.

Asset managers have to be innovative to protect assets from the damaging effects of the inflation which doesn’t look like climbing down any time soon.

Asset classes, strategies, and geographies which were hitherto rejected are now being considered favorably.

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2. Increasing Compliance Requirements

Thanks to increasing demands and concerns for sustainable development, there is an exponential increase in ESG (environmental, social and governance) investments, and it is only likely to keep going up.

Consequently, asset managers are under greater pressure than ever to deliver consistent reports and more detailed data about ESG investments.

ESG regulations are increasing as well; the SFDR – II is being rolled out with more stringent requirements with regard to ESG, MiFID II sustainability preferences etc. are also now part of the ESG regulations that asset managers have to comply with.

Increased regulations and compliance requirements are crucial asset management industry trends.

Non-compliance with rules and regulations can attract hefty penalties and legal action which obviously no company wants to face.

Not maintaining assets properly can lead to breakdowns and failures which could have far-reaching consequences; this makes it essential for auditors to verify that regular maintenance of assets is carried out.

Asset management software can send notifications when maintenance is due, or software licenses are nearing expiry date, which will help asset managers to maintain compliance.

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3. Increased Stress on Maintenance

Maintenance of physical assets has to be the top priority for any asset manager.

When machinery, equipment, or vehicles are not properly maintained, you can have breakdowns, leading to loss of precious time, which in turn lead to production and delivery delays.

At Tranquil, we understand its importance, and have a powerful asset management module in our ERP solution that helps companies to streamline, automate, and improve maintenance tasks.

With proper asset maintenance, you can extend the life of assets, reduce the cost of maintenance, and minimize the chances of machinery and equipment failing.

Preventive maintenance of assets involves scheduling servicing of equipment at specific intervals to identify possible issues before they blow up into big problems.

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4. Tracking and Monitoring Assets

Every business has physical assets, but companies that manufacture or sell products have a lot more equipment, along with inventories.

It is imperative that these assets and inventories are tracked and supervised meticulously to avoid them being stolen, lost, or misplaced.

Tranquil ERP’s asset management module helps companies by delivering important information about the location and status of the asset.

5. Centralizing Information

In the post-pandemic era, remote working and hybrid working has become more common, with an increasing number of employees preferring to work from the comfort of their homes.

To facilitate remote work and proper collaboration among different teams, it is essential that everyone has access to all the necessary information; only then can the work proceed smoothly.

With Tranquil’s asset management module you get a central dashboard where all the information can be accessed by employees based on their roles, so that everyone is on the same page.

Asset tracking software can also be tweaked to accommodate the varying needs of different organizations

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6. The Internet of Things (IoT) Will Become Increasingly Important

Asset management is undergoing a significant transformation in the year 2023 – with the Internet of Things or IoT being a big part of the technology that is driving this change.

Asset managers are able to easily monitor the performance of assets in real-time and store important data about them thanks to IoT technology.

IoT uses embedded sensors to collect information about assets and sends that information to connected networks.

Asset managers enjoy several benefits like enhanced tracking, maintenance, and reporting on assets, just to name a few, because of IoT technology.

They can make use of predictive analysis models to make predictions about future events that could possibly have an effect on their assets.

IoT solutions are especially valuable tools of data collection for industries that rely heavily on assets; it is fairly certain that this advanced tech will affect the manner of performing asset management in the foreseeable future.

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7. AI and Machine Learning Gain Prominence

In the near future, we will see asset management strategies depend increasingly on artificial intelligence and machine learning, and not just the Internet of things.

AI and ML can help in further automating activities related to asset management and can help to monitor assets even more precisely.

With AI technology, data is used to improve not only tracking of assets and maintenance, but also get a better picture about performance and understand the performance metrics better, and have improved access control.

Machine learning helps in identifying patterns within the lifecycle of assets by mining asset data both real-time and historical.

Asset managers can leverage these cutting-edge technologies for streamlining operations, optimizing the use of assets, mitigating risks, reducing expenses, and eventually, achieve enhanced utilization of organizational assets.

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8. Rise in Mobile and Cloud-Based Asset Management Solutions

The methodology of the management of fixed assets is evolving swiftly, with more and more businesses wanting to implement cloud-based and mobile-friendly solutions to achieve streamlining of asset lifecycle management and asset tracking.

Continuing with manual methods to manage your assets won’t cut it anymore.

Industry experts believe that 2023 will be the year when organizations will move to cutting-edge technology (read asset management software solutions), and abandon paper and manual spreadsheets.

The software will allow them to get access to asset information in real-time, regardless of wherever they are, and whenever they want.

The use of asset management software can help organizations reduce and bring down capital expenditure, track asset depreciation more effectively, and decrease asset downtime.

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9. Higher Impact of Robotics and Automation

Experts predict that there will be a greater use of robotics and automation, with machines helping to streamline processes related to asset maintenance and tracking.

This approach to asset management offers several advantages – from ensuring compliance to improving performance, as robots will be able to handle static asset data with greater speed and precision as compared to human employees.

Already there is a certain level of automation, and it has brought in several beneficial changes in asset management, by detecting irregularities in inventories, optimizing maintenance schedule calendars, and so on.

Seeing how the use of robotics and automation is increasing, experts predict that asset managers will employ robotic tech for better-informed decision-making regarding asset acquisition in the future, and the reorganization of assets that are not needed in the organization anymore.

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10. Stronger Efforts in Tightening Asset Data Security and Privacy

Security threats continue to become more serious in nature in the realm of asset management, making it all the more necessary to have better tracking of assets.

Thanks to increased digitization, the risk of asset theft has multiplied manifold.

Malicious individuals keep trying to hack into asset systems and steal confidential customer information.

Therefore, it is crucial that asset managers are vigilant and pay extra attention to maintaining the safety and privacy of information.

Asset managers can consider using encryption software, installing robust firewalls, anti-malware software, using multi-factor authentication for data access, and other protective measures to safeguard critical information from cyber-attacks.

Data breaches can be damaging to the reputation, and also cause the organization great expense.

This is why tracking of assets needs to be seen as an integral part of asset management in any business anywhere in the world; this will promote more effective utilization of assets, improved assessment of risks, and better operational efficiency.

Security of data is probably going to be one of the most critical trends to be prominent in this year, as asset managers scramble to do whatever it takes to safeguard customer data.

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11. Greater Focus on Sustainability And Circular Economy Practices

We touched briefly upon ESG as part of moving towards more sustainable development.

Today companies are making a shift towards practices of circular economy to support sustainability initiatives, along with recognizing and managing asset lifecycles.

By concentrating on optimizing assets and boosting efficacy of work processes, asset managers can make use of fixed asset management to minimize asset failures and downtime, reduce costs, boost utilization of assets, ensure compliance, and optimize asset maintenance.

Along with helping companies attain their objectives of sustainable development, circular economy practices help in bringing down the net carbon footprint of procedures related to asset management.

Above all, the management of fixed assets can also be used to improve traceability and transparency of assets across their lifecycles to attain better governance and accountability.

This is in fact, an important part of achieving sustainability objectives more effectively.

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Conclusion

Knowing what the trends are in fixed asset management can help you as a business to manage your assets properly to get the most out of your investment in them by keeping them in top operational condition for longer, and avoiding downtime which hampers productivity.

Learn how Tranquil can help you achieve streamlined asset management and sustainable development: schedule a FREE demo to know more.

 

Any project that fulfills the requirements agreed upon, is completed in time, and is within budget, can be said to have been executed successfully.

In the course of the project implementation, it’s quite possible that your team will face several problems at various stages, threatening to hamper the success of the project.

The project manager is responsible for predicting and foreseeing potential problems, and have backup plans ready to tackle them.

Project management is a complex process spanning several stages, the chief ones being initiation, planning, implementation, monitoring, and closure.

Project management challenges can occur at any of these stages.

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Common Project Management Challenges

Let us look at the most common challenges you are likely to face in a project, and how to handle them.

1. Scope Creep

When the scope of a project goes beyond its original scope and goals, there is said to be scope creep, and usually happens when clients or other stakeholders want extensive or frequent changes made.

Sudden or frequent changes in the course of project execution can lead to confusion, raise the cost of the project and make it impossible to meet milestones and deadlines.

If you eliminate scope creep, you will be able to ensure the completion of the project in time and within budget.

How to Avoid Scope Creep?

It is essential to engage proactively with stakeholders at the outset and understand their exact requirements and expectations.

Define the goals and requirements clearly and draw up a schedule showing each step in the process.

Ensure to involve the stakeholders in planning the project.

You also must accurately plan allocation and usage of resources and talent, and make it a rule to not accept ad-hoc requests for change during the execution of the project.

Use Gantt charts, project management software, and other tools to plan and track projects to make sure you are right on track.

Communicate to the stakeholders how changing the scope mid-way can impact budgets and deadlines, and clearly but politely refuse to accommodate major changes that may extend the deadline, hike up the cost, or create confusion.

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2. Improper Communication

This is one of the most common project management problems and can throw the whole project out of whack if left unaddressed.

A project manager with poor communication skills is unable to give proper instructions, take feedback, collect information, and convey appropriate messages to stakeholders.

This can cause a lot of upheaval, chaos, misunderstandings and conflicts, and can lead to delays in project execution.

How to Improve Communication?

The best way to improve communication is to use project management software that has inbuilt collaborative and communication tools, allowing all the relevant team members to access important information from the unified communication board.

Project managers must not only give regular feedback about their teams’ performance, but also take feedback from them regarding any issues they may be facing.

The manager must also be adept at conveying messages to stakeholders properly and keeping them updated about the progress of the project.

PMs can also conduct team-building activities to enhance communication between team members and foster collaboration and better relationships.

It is important to be transparent about the project – whether it is progress or problems; a good project manager will use the appropriate method or approach of communication to suit different types of people.

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3. Lack of Clarity in Goals

For projects to be successful, it is imperative that there are measurable and well-defined goals that the team can work toward.

Often, the goals are unclear to many of the employees involved in the project, and don’t know what the customer is expecting.

This could cause the team to waste time and resources in chasing goals that are not the ones the stakeholder desired at the outset, and don’t deliver any value.

How to Devise Goals and Ensure Clarity?

There are two main approaches to goal setting for organizations – CLEAR and SMART.

CLEAR stands for collaborative, limited, emotional, appreciable, and refinable.

SMART stands for specific, measurable, attainable, relevant, and timely.

Either approach or a combination of the two can be used by project managers to set goals that can guide employees and team towards timely project completion.

The project can be broken down into smaller, simpler tasks; the most suitable people can be assigned to those tasks, and the goals and objectives must be clearly explained to them.

The specifications and timeline of the project must be defined before the execution begins, and you must hold a team meeting to define and discuss the goals, and follow up to reiterate them at intervals.

You can use reliable project management software like Tranquil to clearly define goals and the role of each team member in attaining them. You can also identify methods to track progress.

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4. Inadequate Budgeting

When financial planning is haphazard and cost is not managed properly, the funds allocated for the project are not used properly.

This means you are unlikely to achieve the desired outcomes.

With improper handling of money, your project may well overshoot the budget, which will not go down very well with your stakeholders – not to mention that it could negatively impact your project completion.

How to Handle Budgeting Restrictions?

The budget changes whenever there are sudden requests for changes in the project – what we refer to as scope creep.

Ergo, managers need to have contingency plans in place to accommodate for a little scope creep and budget for that right at the beginning.

You must consider that some changes may be inevitable and make allowances at the planning stage.

You can use budget tracking software or the trackers in our project management tool to ensure that you stay within budget.

It is important to plan the budget early on and be realistic in estimates.

You can review projects similar to yours and compare their budgets, and also take expert advice from QA specialists or developers who are well versed with estimating time and cost for projects like yours.

You may also need to reassign resources, change vendors or services, etc. as required.

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5. Skill Gaps

It may so happen that the skills or level of skills required to successfully execute the project are lacking in your employees – this is what we call a skill gap.

When employees are unable to perform their roles, there will be a gap between the goals and outcomes of your project.

How to Ensure Adequate Skills of Team Members?

Start by making up a list of the knowledge or skills the project requires for successful completion, and assess the skills your team members have.

Provide necessary training to bridge the skill gap so that your project can progress smoothly.

Make sure to match employees to tasks based on their skills and expertise, and hire additional staff if required to close the skill gap and ensure timely completion.

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6. Unsatisfactory Risk Analysis

Conducting risk analysis is important so that potential issues can be predicted; this is a critical part of the project, yet it in itself is open to some risks.

If you hurry through with the analysis, you may not be able to properly foresee major hinderances that can crop up.

This can cause any number of problems – financial or otherwise.

How to Improve Risk Analysis?

It is important to research the potential project management challenges that you may face at different stages, and create plans and measures to mitigate and prevent those risks.

Have backup plans in case changes are made to the original project.

It also helps to know what resources are at your disposal to be able to control and minimize these risks.

ALSO READ: What is Total Cost of Ownership (TCO)?

7. No Accountability

It is important for employees, regardless of which level they are at in a company, to take responsibility for their mistakes.

It is important to know who made the mistake, as they need to face the consequences of their actions Sometimes, even seemingly small mistakes may lead to huge problems eventually.

When accountability can’t be fixed on a single individual or group, the entire team may get blamed for it – and this can impact team morale, impacting productivity, as time, resources, and effort are wasted in trying to find out the cause and eventually a solution.

How to Boost Team Accountability?

It is important to be very clear about the tasks you assign to each member, and also set common goals which your team has to work toward.

Ensure there is accountability in the workflow of your project so that all employees have clarity regarding their roles and responsibilities.

Lead by example, accept your mistakes, so that employees understand its alright to go wrong as long as you take ownership for them and rectify them.

Create trust between team members so that everyone is transparent and comfortable.

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8. Stakeholder Disengagement

In some cases, stakeholders are not involved in the planning or execution of the project, leading to a lack of communication and collaboration with the project team.

This means no inputs to guide the team towards the ideal outcome, and can also lead to improper risk analysis and unclear goals.

How to Ensure Sufficient Stakeholder Engagement?

Stakeholder engagement is critical to a project success, so you must involve them in the project right from the initiation and planning stages.

Make sure you communicate frequently with them, updating them about the progress of the project regularly.

Get feedback from them at every stage and ask them for inputs and recommendations so that you can get the desired outcomes from the project.

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9. Impractical Deadlines

Sometimes, either overenthusiastic project managers or customers in a hurry demand the project be completed within unreasonable due dates; it is humanly impossible to complete the project with the given requirements and specifications within that time.

This often leads to hurried activities and short-cuts, compromising work quality.

Consequently, the project completion will be slapdash and will not achieve the desired outcomes and expectations.

How to Set Realistic Deadlines?

Learn to set priority to tasks – think which are the most important.

Plan for possible problems and keep a time buffer for your deadline.

Involve relevant employees in fixing deadlines and discuss your concerns about them with stakeholders at the very beginning.

Use a calendar and timeline tool to manage deadlines properly.

10. Scheduling Conflicts

This arises when there are conflicting priorities that both need equal time and attention, especially if you are working on several projects simultaneously.

This may lead to multiple projects getting delayed, and problems with resource allocation.

ALSO READ: Different Ways to Improve the Procurement Process

How to Schedule Properly?

You should coordinate with other OMs regarding the schedules and requirements of your project, and check holiday and time-off schedules of employees to eliminate surprise absences.

You can use the inbuilt calendar in our project management tool to organize different projects and their requirements simultaneously.

Use Technology

Project management software is the need of the hour to ensure successful planning, management, and completion of projects.

It is essential to choose robust, cloud-based business software like Tranquil to avoid delays, enhance communication and collaboration, and ensure smooth execution of your project.

ALSO READ: Benefits Of Software As A Service

Tranquil ERP’s project management module allows you to track time, and schedule tasks, has inbuilt communication tools, integrates with your other business tools, and can be customized to suit your requirements. It’s an affordable and robust tool that can help you save time, effort, and money, and streamline your project management. Schedule a FREE demo to know more!

 

Any entrepreneur who wants to provide great customer service and carry on with marketing and sales tasks on the go will be benefitted by mobile CRM.

It helps you view and manage important information in real-time wherever you are.

After all, with global web traffic jumping five times in just one decade – from 2012 to 2022, you simply cannot afford to ignore that sector.

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What is Mobile Customer Relationship Management (CRM)?

We know that CRM software contains all vital information about a company’s customers, helping businesses create and manage relationships with customers both potential and existing, improving customer service, and eventually boosting revenues.

Mobile CRM is simply mobile CRM software – a mobile app for CRM which you can use on smartphones and tablets; this means you have information at your fingertips when and where you need it.

Internet users are increasingly turning to their mobile devices to browse the internet, as it offers anytime anywhere access to data, and entails less effort.

Mobile CRMs aim to deliver a heightened customer experience that consequently improve sales.

Businesses can also enjoy better communication, increased productivity, manage data better, and build robust customer relationships.

Mobile CRM adds value for all stakeholders – management, employees, and customers.

ALSO READ: ERP vs CRM

Mobile CRM Benefits for Employees

1. Unified Database

Mobile CRMs enable sales teams to record, view, edit, and update customer information on a unified, central platform.

Employees can easily find the information they want, like customer details, and history of interactions whenever they need it.

CRM tools provide information instantly to empower your employees.

They are able to handle interactions better and foster stronger relationships with customers that lead to more sales and revenues.

2. Anytime Anywhere Real-time Data

All teams and employees use the same platform to store data, track details, record problems, and run marketing campaigns; with mobile CRM, you have the latest info at your fingertips whenever you want them.

Employees working in different geographies all have access to the same information in real-time, so everyone has exact knowledge of the status of a campaign, a customer follow-up call, and so on.

ALSO READ: Benefits of E-commerce and ERP Integration

3. In-depth Customer Insights

Employees will get the tiniest details about customers and their prospects, divide them into specific groups based on preferences, requirements, pain points, etc.

These insights will help you deliver personalized marketing messages to prospective and existing customers and sell them the correct product or service.

4. Enhance Productivity

By automating the activities in the sales process and centralizing documentation, mobile CRM solutions save a significant amount of time and effort.

It will also help in tracking appointments and eliminating data redundancy.

It is also helpful in identifying risks and opportunities, making sure all employees have access to whatever they need.

ALSO READ: Must-Have Inventory Management Software Features

5. Prompt Reminders

CRM mobile apps allow you to set reminders for follow-ups and meetings, so that you don’t forget a scheduled meet and miss out on a sales opportunity.

Employees may have multiple meetings scheduled, and this feature can be very handy indeed.

Employees can also keep track of all interactions with customers, which can help them in the future.

6. Meeting Preparation

It is important to be properly prepared for any meeting – especially so with customers; an ill-prepared employee may not be able to seal the deal and build a strong relationship with the customer.

It can also affect your brand reputation negatively.

With a mobile CRM, you can get all the information about the customer, allowing your employee to make the right pitch, and offer the right information, product, or service.

ALSO READ: Common ERP Myths You Should Be Aware Of

7. Boost Collaboration

As different teams across the organization can view, access, and exchange information from one central dashboard, mobile CRM can foster greater teamwork and collaboration.

It boosts employee morale as they can easily communicate with their colleagues and get the requisite support for closing deals.

8. Anticipating Customer’s Needs

With detailed customer information at their fingertips, your employees can confidently upsell or cross-sell products.

Knowing customer preferences helps employees sell more and sell faster.

Knowing buying habits and past history of interactions can help your staff fulfil the needs of your customers.

In fact, it can help your employees to craft innovative and timely offers to entice customers.

ALSO READ: Guide on How Do ERP Systems Work 

Mobile CRM Benefits for Customers

Strong Relationship

As CRM helps employees to provide tailored experiences and custom campaigns, offers, and pitches to customers, it helps them feel valued and important, and customers will be inclined to stay loyal to your brand.

When a business prioritizes their needs and provides personalized service, they can easily build trust and forge strong and long-term relationships with customers.

Mobile CRM Benefits for Businesses

1. Customer Satisfaction

As we already saw, timely and personalized service makes customers feel valued, earning trust, loyaltỵ, and brand reputation.

This will help your brand grow immensely.

Customers will act as your brand advocates – and this works better than any marketing campaign you can launch.

2. Increase Employee Productivity

Mobile CRMs automate cumbersome, time-consuming tasks of low value, freeing employees to work on value-adding sales activities, and helping them focus on customers.

Helps to increase their productivity and generate more sales.

The increased collaboration results in faster achievement of business goals as well.

ALSO READ: Challenges and Benefits of CRM

3. Save Time

Time is of the essence for any business; by streamlining and automating many routine tasks, mobile CRM helps in saving a great deal of time, and effort as well. Eventually, this translates into higher revenues.

4. Analytics and BI

You can get reports, charts and graphs, and trends which show customer behavior; these analyses can help you to see what strategies are working and which ones need change or improvement for business growth.

In short, it helps you to understand your target audience better.

ALSO READ: BI vs ERP

5. Improved Revenue Forecasts

By enabling sales teams to track prospects through the different phases in the sales funnel, they can instantly know what they have to do to convert the prospect into a customer – that is, close the deal.

Prospects are categorized into different groups like cold leads (old prospects with whom no follow-up was done), hot leads, etc.

This is helpful in analyzing every group minutely and creating appropriate strategies, and also in ascertaining how many deals can be sealed in a specific time limit.

Features To Look Out for in a Mobile CRM

1. Personalized Customer Profiles

This is an absolute must-have. Detailed customer information like purchase history, pain points, needs, likes, fears, demographic details, etc. helps in creating customer profiles that allow you to customize offers, products, and marketing strategies.

2. Built-in Calendar and Reminder

A reliable CRM app should have an inbuilt calendar along with reminders to help sales reps stay abreast of upcoming meetings and follow-ups.

It will help the team to stay in touch with customers too.

ALSO READ: Benefits of Sales Management Software

3. Contact Management

A mobile CRM with a robust contact management feature will eliminate the need for toggling between different messaging apps and phone calls.

All the prospects and previous interactions will be displayed in one place, making it easy to contact anyone.

4. Detailed Customer Timeline

Regardless of which part of the sales funnel your customers are in, mobile CRM shows you where they are along with in-depth personal info, past purchase history, interactions, and follow-up tasks.

5. Lead Ads Integration

When your CRM mobile app integrates with ad platforms like Facebook, Google, Twitter, and Instagram ads, it helps to connect to your leads on a priority basis and update those in your contact list.

6. Smooth Navigation

Mobile apps are mostly used on the go, when you’re pressed for time; you need user-friendly interfaces and platforms, where you can navigate to wherever you want easily and quickly.

A mobile CRM should be lean and have the most essential features only.

ALSO READ: Benefits of ERP in Accounting and Financial Management

7. 3rd Party Tools Integration

It is a good idea to choose a mobile CRM that can be easily integrated with the communication tools and other business apps your company uses.

8. Flexible Pricing

Small businesses with restrictive budgets must select mobile CRMs that enable flexibility in plans; this could be in the form of various levels of pricing plans so that you only pay for what you actually need.

The plans should allow you to scale easily as your business grows.

9. Data Security

It goes without saying that data security is paramount in a world that is increasingly susceptible to cyber-attacks.

The mobile app for CRM must include ironclad security and encryption that protects your data, even if an employee’s mobile device is lost or stolen.

10. Activity Tracking

Mobile CRM should ideally include communication tracking – all interactions between customers and sales teams should be recorded and tracked to avoid duplication of those activities.

With the inbuilt communication tools, like instant messenger, etc., you can even streamline communication across the organization.

ALSO READ: How is AI transforming ERP? 

11. Offline Work

The mobile app should be able to work in the absence of an internet connection, allowing you access from wherever you are.

The updates and alterations you have made will be automatically saved once you go back online.

11. Calendar Integration

Apart from integrating with business tools, the CRM app must also integrate your various calendars, centralizing information on meetings, deadlines, appointments, presentations, and so on, from your emails.

Important Considerations for Implementing Mobile CRM

You must make sure of the following:

• Your CRM has mountains of confidential and sensitive information; hence you must take every precaution to ensure data security. It is especially important for mobile CRM where employees use their own devices which are more vulnerable to data breaches.
• Your mobile app must be compatible with all the devices your employees use; before you implement a CRM, ensure that it is responsive, or buy compatible devices for your sales teams.
• Maintain your focus on the important features; you can easily stray away from the essentials like marketing material, and get dazzled with shiny features you don’t really need. Nonessential features will create confusion and bring down productivity.

ALSO READ: Benefits of ERP- IoT Integration

Challenges In Using Mobile CRM

1. Smaller Screen Size

A mobile device may not be able to display all the required info clearly at one time due to its small screen; it is also not possible to open several tabs at a time like on a desktop to make comparisons.

For analyzing huge data volumes, using a mobile CRM can be pretty challenging.

2. Complex Tasks Management

Mobile CRM drives sales reps to take specific actions like contacting leads – routine, simple tasks.

It is not ideal for handling complicated workflows or reports dashboards.

ALSO READ: Emerging HR Trends 

3. Fewer Email Features

Some very convenient email features like mail merge with a single click, automated email drips, etc. are missing in mobile CRMs.

You may need to also use other messaging apps for this purpose.

4. Bottom Line

Small businesses that are aiming for growth and looking for ways to boost productivity, sales, and revenues, must invest in a reliable mobile CRM.

They will be able to access critical information where they are when they want.

Tranquil is a leading ERP software solution in GCC. If you’re ready to harness the power of mobile and cloud, schedule a FREE demo right away!

 

It’s a well-known fact that businesses can streamline, automate, and enhance their business operations by implementing an effective ERP solution.

The software provides real-time information from across the organization in a centralized dashboard, delivering valuable insights to decision-makers.

When we integrate ERP with IoT, the benefits are multifold.

This is because there is now a lot more data available via the connected sensors, and it affords an in-depth visibility into everything happening within the organization as well as the supply-chain.

The data generated by IoT is translated into valuable analytics that facilitate informed decision taking.

What is IoT and What is its Use?

The Internet of Things is a group of connected devices that have sensors to track, exchange, and generate reports on data.

The sensors capture data that cannot be normally recorded, like requirement for maintenance, production processes, tracking inventory (reading RFID tags through handheld devices), monitoring items as they move across the different phases of supply chain via GPS or similar technology, and more.

ALSO READ: Future of Enterprise Resource Planning

The Benefits of Integrating ERP and IoT

IoT ERP integration offers several benefits; data provided by IoT offers vital business information that helps to improve quality, productivity, and overall efficiency.

Let’s take a look at the chief benefits in detail:

1. Better Data Quality

When ERP software is integrated with IoT, businesses get more data, and in better quality too, which promotes growth.

The IoT sensors that are connected send encrypted data to the ERP system securely and without diluting the quality.

Any data that changes on the way to the ERP system gets automatically updated.

Let’s suppose a truck in your fleet breaks down; when the IoT sensors in the truck are linked to your ERP, the information will reach your system in real-time, enabling your team to take the necessary action to get the truck or its contents back on the road again to avoid shipping delays.

ALSO READ: PSA vs ERP

2. Improved Management of Supply Chain

You can get accurate info on the condition and status of inventory with smart IoT sensors.

Businesses can get to know how their assets are impacted by environmental and physical factors.

They can also verify if problems like poor packaging occurred, and also if weather conditions like humidity or extreme temperatures caused damage to the product.

Products are tracked throughout their journey, and organizations get real-time info about the location.

IoT can relay information about routes blocked because of weather or heavy traffic, allowing you to reroute your vehicles.

On receipt of products, the sensors can trigger activities like onward shipping and payments to vendors.

Warehouse staff can find products easily thanks to real-time location tracking.

Supply-chain cycles can be reduced as you get essential information faster as compared to manual methods.

When you have accurate inventory status, you can execute orders confidently.

Tracking inventory in its movement significantly lowers the chances of loss and theft; thus, IoT enables supply chain to be transparent, and more efficient.

ALSO READ: Emerging Trends in Supply Chain Management 

3. Increased Insights and BI

When you have access to volumes of data and superior quality data, you can take informed business decisions as ERP turns the IoT-generated data into actionable information.

This in turn is conveyed to the relevant personnel who can take the right actions.

Thus, ERP and IoT combine to make businesses more proactive rather than reactive.

For any organization to grow and earn increased revenue, it is critical that they plan well and take the right decisions.

This integration is capable of delivering complex and in-depth business intelligence in real-time, facilitating decision-making.

It also eliminates paperwork and manual effort, simplifying the process with new technology.

4. Better Shop Floor Performance

IoT goes further than simple automation of manual processes.

Tasks that were considered ultra-intricate or extremely interconnected to be automated, can today be automated thanks to IoT.

This boosts productivity and enables ERP to offer real-time visibility into production, simplifying operations to offer step-by-step measures.

Enhanced automated brought in by IoT facilitates reduction of wastage, more streamlining, and even better profitability.

ALSO READ: Benefits of Implementing ERP for Oil and Gas Industry

5. Greater Operational Efficiency

IoT in ERP increases automation even further, helping to boost operational efficiency by eliminating manual effort.

Activities like scanning barcodes and entering the data into the ERP system manually, re-ordering and re-stocking inventory, tracking deliveries, updates on inventory, etc. are updated automatically in the ERP in real-time via the sensors in the machinery and different parts.

Data from the sensors is sent directly to the ERP system.

This efficiency and automation also lead to reduced cost of operations.

ALSO READ: Common Inventory Management Mistakes to Avoid

6. Less Downtime

Undoubtedly, ERP software has made business processes better and smarter; adding IoT to the mix, takes this to a higher level with added data accuracy, security, and volume.

Processes are smoother and faster, regardless of whether it is to count inventory or optimize the organizational workflows – everything is faster and smoother; breakdowns, stoppages in production, etc. can be immediately responded to, eliminating delays and downtime.

This means happier customers.

7. Enhanced Forecasting

Businesses must be able to plan for the future properly.

Integration of ERP and IoT delivers more information regarding the manner in which customers search, find, buy, and use products and services.

With IoT-generated data, businesses can detect patterns to take the right production decisions.

The extra information helps companies be more accurate and effective with their planning and forecasting.

ALSO READ: What is Demand Forecasting? 

8. Better Quality

IoT sensors on production lines can easily detect any issues in the work in progress like defects or misalignments, enabling their immediate rectification.

With sensors on products, businesses can learn how they are used, and detect what changes need to be made to enhance quality.

Sensors can also identify deficiencies in products, allowing companies to contact customers and rectify issues proactively, probably even before they get noticed.

9. Better Communication

Communication among the production department, vendors, dealers, and customers can be significantly improved with the integration of IoT with ERP.

ERP systems record every single sale of products from your inventory once they are manufactured or procured.

Manufacturers communicate directly with customers.

Other stakeholders like dealers, distributors, vendors, and logistics providers also need clarity on sales.

IoT provides the solution, updating the requisite information in the ERP software, and ensuring that everyone is on the same page across the process.

ALSO READ: ERP Configuration vs. ERP Customization

10. Better Asset Maintenance

ERP system receives alerts from sensors embedded in manufacturing equipment, when there are problems in performance.

These sensors also guide technicians regarding the exact location of the malfunction or problem.

Sensors also send alerts about when machinery is due for scheduled maintenance, so that they can remain in the best operational condition.

It also enables predictive maintenance instead of preventive maintenance; this means that equipment gets serviced when the sensors predict a possible breakdown.

Preventive maintenance schedules maintenance service for equipment, whether there is a possibility of malfunction or not.

Tracking, maintaining, and optimizing assets to use them better, and ensure they are available always and perform better, is made possible by predictive maintenance.

It reduces cost of maintenance, and ensures longer operating life of assets.

ALSO READ: Key KPIs for ERP Implementation

11. Improved Environmental Sustainability and Energy Management

As IoT enhances process automation and boosts speed and efficiency, it helps businesses to be more sustainable.

This is due to the fact that heightened efficiency results in lower emissions and less wastage.

IoT sensors are capable of detecting things like gas leaks, thereby minimizing pollution and waste.

The data it collects allows the more efficient use of resources, and also the reuse of materials and parts.

IoT also ensures optimal routes for trucks, decreasing the quantity of fuel used.

IoT sensors also identify the most sustainable methods of machine operation, enabling companies to minimize their carbon footprint.

The Challenges of integrating IoT with ERP

While there are innumerable benefits of integrating ERP and IoT, it is not without its challenges.

Let us take a look at some of the hurdles you will need to overcome.

1. Security Threats

Anything that is connected to the internet opens the doors to breaches in security, and the same is the case here too.

However, with stringent security protocols like robust firewalls, multi-factor authentication, anti-malware software, and so on, this threat can be substantially mitigated.

With the right precautions, you can ensure safety of your critical data.

ALSO READ: What Is Cloud Data Protection?

2. Connectivity Issues

IoT needs a strong and stable connection to the internet, without which it will be unable to do its job.

When sensors are used to track vehicles in transit, this is often a problem, because they may pass through areas with poor networks.

IoT also requires a high bandwidth – the more sensors, the higher the requirement.

If there is no proper network bandwidth, you may not get all the information that you need.

3. Legacy Equipment

It can be challenging to deploy IoT on old and outdated equipment; but the paradox is that this is a strong case to implement IoT!

Embedding sensors on equipment helps to maintain them effectively by providing new information or context about that equipment, enabling you to operate it in an improved manner, reducing maintenance cost through the prediction of malfunctions, and eliminating unforeseen downtimes.

ALSO READ: ERP vs CRM

4. Cost

The initial outlay for IoT can be pretty high, especially so when you use sensors on old equipment, as you may need to retrofit the machinery to accommodate the sensor.

This may actually be more expensive at times than replacing it with new machinery that has an in-built capability to use IoT technology.

You also need stable, high-speed internet, cloud-driven infrastructure, and so on, for the integration to work successfully.

You will also need an external agency who can implement the system and perform the integration.

ALSO READ: Why Tranquil is One of the Most Trusted ERP Solution Providers in GCC?

Does it Make Sense to Integrate IoT with ERP?

Industry experts estimate that there will be close to 40 billion IoT devices globally by 2026.

The decision of integration depends of course on several factors, like the size of your business, the industry you are in, and whether your current ERP solution is compatible with IoT technology, among others.

You also will have to do a cost-benefit analysis before you make the final decision.

Conclusion

You may think that you are a small company that doesn’t really need this integration, but it is not so.

This solution is excellent for small and medium manufacturers, especially so if your processes are complicated, and your machinery is vital for ensuring quality and performance.

Tranquil ERP is a leading ERP solution in GCC. Capable of offering your business multiple benefits like increased automation, reduced downtime, better customer service, and many others. But don’t just believe us; witness it for yourself. Schedule a FREE demo at a time that is convenient for you, and we will be happy to show you how it works.

 

Regardless of the industry your business is in, or the size, it is vital that you have appropriate accounting software.

It is a huge improvement over using manual methods and spreadsheets, as software can save you time and effort, and will be more accurate.

Why Use Accounting Software?

The biggest benefit offered by accounting software is the improved efficiency, and having all your information in a centralized location, allowing you to easily see your spends and incomes, and to know where to find that information.

The software can be connected to your bank accounts so that you can avoid manual data entry of transactions; the dashboard will give you a real-time view of the most critical metrics.

Accounting software solutions can churn out several types of reports and financial statements like the profit and loss statement and balance sheets, which are a must for many reasons: to ascertain the company’s financial health, inspire investor confidence, form business strategies, and also to comply with regulations.

Statements can be compared with those of the previous financial periods to determine how well the business is progressing – or not; this can help you to take informed decisions for business growth.

By implementing accounting software, you can automate monotonous and time-consuming tasks and divert your employees’ time towards more productive or value-adding tasks.

It categorizes transactions, increases efficiency of your book-keeping, and help you monitor all transactions efficiently, managing your tax flow properly.

Today, accounting software has evolved tremendously, and there are several solutions available today.

Deciding which one to purchase can be daunting; how will you choose?

You need to check the features being offered, and what your business requires.

ALSO READ: Accounting Problems and Solutions

Features of Accounting Software

Here are the important features of accounting software that you need to look for:

1. Security

It goes without saying that the solution has to be secure – after all it will deal with financial and personal information of customers and/or vendors.

This is the most important of all the accounting software features, so you must ensure that the security is iron-clad.

2. Cloud Computing

Accounting software can be installed either on your own servers or on remote servers (cloud).

Cloud computing offers innumerable advantages to a business, and hence it makes more sense to go with a cloud-based solution like Tranquil.

It facilitates remote work and collaboration, allowing the business to engage freelancers instead of hiring a full team in-house.

Secondly, the software is automatically updated by the vendor; any new features, bug fixes, and so on, are automatically done.

Moreover, you don’t have to incur expenses in upgrading your hardware to implement it.

3. User-friendliness

In small and medium-sized companies, the accounting software is likely to be used by admin staff rather than actual accountants, and they may not have any financial expertise.

But if the software is intuitive, your admin staff will be able to take care of these things easily.

Firms that do have accountants can do more value adding tasks like supervise, conduct a detailed analysis, and more.

ALSO READ: Accounting Trends for 2023

4. Scalability

Is your software future-ready?

Innovations are happening at a rapid pace now, with increased automation and speed being at the forefront.

A growth-oriented business must implement accounting software that is scalable and will be able to handle the extra workload when the business grows; this could be in the form of more transactions, users, vendors, customers, currencies, and so on.

With higher volumes of financial data being generated, it is all the more necessary to use specialized tools and automation.

5. Integrations

Look for accounting packages that offer integrations with third-party software your business uses or is likely to use, and this will be a huge time and money saver for your company.

It could be for automatic invoice charging and reconciliations with which all you have to do is set up the invoices, and the software does the needful on the due dates.

ALSO READ: Guide on Budget Variance Analysis

6. Mobile Friendly

With mobile penetration increasing by the day, it is absolutely necessary for you to ensure that your software is mobile-friendly.

This will help your customers offer mobility to their customers, adding to their convenience.

Does your software offer a mobile app? That’s a huge plus.

7. Invoicing and Payment Processing

Billing and processing payments are important software accounting features that will help your business greatly.

At a glance, this will tell you the amount owed to you or the amount you owe others – along with printing and emailing invoices.

The system stores basic information on your vendors and customers like name and contact information, payment terms, etc.

These may seem simple but it helps you save a great deal of time and effort, allowing you to focus on core business tasks.

ALSO READ: What is Cashbook in Accounting?

8. Bookkeeping Capabilities

Efficient accounting software will take care of routine book-keeping activities like:

• Updating ledger entries
• Tax calculations
• Bank reconciliation
• Asset depreciation tracking
• Handling payroll and deductions

To be able to perform these tasks, the software must have these features:

9. General Ledger

This is the primary accounting book maintained by any business; accounting also includes things like account charts, tax management, payroll, reports, invoicing, and more, and all these must be included in accounting software.

Ideally, the software should also help to maintain compliance with financial regulations.

The general ledger feature of software accounting systems includes important information regarding all the financial transactions of a business, and is very similar to conventional bookkeeping, but is more efficient.

It can manage everything from accounts payable and receivable to calculating tax to reconciling bank statements and generating financial statements, and even helps in managing the cash flow.

The ledger contains details of vendors and customers like bank accounts, invoices, modes and terms of payment, and so on.

10. Accounts Payable

We have already mentioned this, but a little detail is necessary, because it is a critical matter.

You don’t want to fall behind on your payments and incur fines and lose your reputation.

When accounts payable are part of your accounting software, you can also access your complete vendor data quickly.

This feature should include the following:

• Purchase orders tracking all orders with quotes that have to be processed
• Automatic payments that allow scheduling of payments, and drafts with complete details
• Credit memos given to vendors for easy tracking and determining the financial position

ALSO READ: Credit Note vs Debit Note

11. CRM Capabilities

If your accounting software has automated invoice emailing capability and can follow up with reminders at set intervals, it can also serve as a tool to manage your relationships with customers with regard to the financial aspect of your business.

12. Financial Reporting and Projections

Accounting software contains all your financial information; ergo, it makes sense that you should be able to make use of this to generate reports and create projections, delivering valuable insights and BI.

In fact, reports are essential in today’s competitive business environment.

Moreover, being able to easily access proper records and reports can help you to perform critical tasks and conduct meetings more efficiently.

Accountants can offer a detailed analysis of such reports and craft a tailored growth plan for your business, and these can help the management to a great extent.

Reports also help to keep track of the financial health of your business.

ALSO READ: Ways to Increase Procurement Process

Benefits Of Accounting Software

Accounting software is a lot more than a necessity in today’s world.

It provides several features that facilitate the smooth functioning of business.

Let’s take a look at how your business can benefit from implementing such a solution:

1. Exercise Control Over your Finances

You can manage your personal finances however you want, but when it comes to your business, you need a formal and proper system.

While manual management with pen and paper and spreadsheets can help, it is incapable of delivering insights that help you take better decisions than a software solution can.

The software organizes your financial data and stores it centrally, giving you a comprehensive view of the financial performance of your business in real-time.

ALSO READ: Guide on Cloud migration

2. Invoice Automation

To ensure proper cash flow and business growth, it is essential to bill customers on time; it becomes progressively difficult to collect if you keep waiting.

Reliable accounting software programs will feature automated invoicing.

In fact, you may even be able to set up recurring invoices, configure reminders to follow up with payments, along with accepting digital payment from the invoices directly.

Most software will even allow you to track invoices that remain unpaid, and offer discounts as a motivation for customers to pay early.

ALSO READ: Second Phase of E-invoicing in Saudi Arabia

3. Track Expenses

For small and even some medium-sized businesses, cash is crucial. Unfortunately, many businesses fail to keep a proper track of business expenses.

You don’t want a shortage in cash flow because your expenses are not recorded properly.

Such situations will not arise when you implement an efficient accounting software that has automated tracking of expenditure.

Receipts can be scanned and recorded, and mileage and expenses incurred for customers can be tracked properly.

4. Bank Statement Reconciliation

It is imperative that your accounting software can connect with your bank accounts so that you can access bank statements from the software, and have automated reconciliation of bank statements.

5. Helps to Maintain Compliance

Maintaining compliance can be difficult in a scenario or rapidly changing and tightening regulations; robust financial accounting software like the one from Tranquil can help you comply with all regulations with regular updates, automated tax calculations, etc.

ALSO READ: ERP Upgrade: Importance and Benefits

6. Reporting and Analysis

Accounting software collects huge volumes of data through integrations with your business integrations, POS etc., giving you in-depth business insights.

Reliable accounting software also include robust reporting functions, allowing easy analysis of data and performance tracking.

7. Inventory Management

This is critical for any business dealing in inventory; you need to ensure that you don’t end up with dead stock or unsellable inventory, or run out of popular products either.

Accounting software helps to track the quantity of products sold, configure reorder levels, and generate reports on both fast-selling and slow-moving products, and also automate your ordering process.

8. Eases Accounts’ Work

Accounting software organizes your data, storing it centrally, scans receipts, files tax forms, and tracks inventory, simplifying the work of accountants.

This saves a great deal of time and they can perform more value adding tasks.

ALSO READ: Critical Factors for a Successful ERP Implementation

9. 24/7 Access

Tranquil ERP is a cloud-based solution which lets you access it from any place you have internet connectivity.

This lets you check any transaction, prepare invoices, generate reports, and accept payments regardless of where you are.

Conclusion

It goes without saying that accounting software is absolutely essential to streamline your accounting process, and to gain a competitive edge in the market.

Tranquil ERP has a robust, feature-rich financial accounting module that will help your business have smooth cash flows, prepare accurate financial statements and a whole lot more. Do schedule a FREE demo at a time of your convenience to see for yourself. Our team will be happy to answer all your queries.

 

The workplace has changed in recent times, no thanks to the Covid-19 pandemic; what had started at that time as a temporary necessity, is slowly becoming the norm today.

The relationship between employees and employers has changed significantly and continues to evolve.

Without further ado, let’s take a look at the HR trends that are true not just for this year but for some time to come.

HR Trends

1. Well-Being of Employees

Stress at the workplace is increasing; employees are constantly under pressure to perform and meet targets if not exceed them.

This stress can negatively impact not only the health of employees but also their relationships with one another, with the management, even with family and friends.

Ergo, an increasing number of people are looking for employers willing to provide working environments that help them maintain their well-being and support their mental health.

In fact, some companies are appointing people as Health and Wellbeing officers.

ALSO READ: The Must-Have Modules and Features for an HRMS

In surveys conducted among employees from various industries, here is what they identified as important:

• Offering free counseling sessions for themselves and immediate family members
• Helping them to be better at personal finance like managing credit, saving money, etc. through financial education programs.
• Providing healthy food options in cafeterias and break rooms

By investing in and focusing on employee well-being, companies can help employees thrive not just at the workplace but at home and the society in general – happy employees are also loyal employees and more productive employees.

2. Skills-Based Hiring Over Academic Qualification

It is becoming more and more common for companies to hire employees with a specific skill set rather than by their college degrees.

They prefer to assess employees through tests that check if they have the skills required for the job.

This actually makes the talent pool bigger for the employers; it also means that talented workers without degrees now have a better shot at a good job.

This approach also adds diversity to the workforce.

It is especially successful in the IT sector – many employees working in computer support or software engineering, have no degrees, but they are exceptionally good at what they do.

It is expected that this trend will only accelerate in the near future.

ALSO READ: Need of Having HR & Payroll Management Software in SMEs?

3. Flexibility

This is one of the biggest trends in HRM; it had become a necessity during the global pandemic, but is slowly becoming the norm.

We are not talking only about remote work, but choosing one’s work hours, and even days.

Some employees may choose to work only four days a week, but work more hours on those days; some may prefer to work a few hours six days a week, and so on.

When workers are allowed flexibility, they are able to fulfil other roles in the family and society, and this makes them happy.

This is of course, a major cultural shift from the conventional 9 to 5 model.

Of course, it may not be possible to offer such flexibility to all segments of workers across all industries, but some degree of flexibility can surely be given, seeing that employees today demand it.

4. Hybrid Learning

This is slowly replacing brick-and-mortar corporate academies.

Online classes and in-person training on the premises (at the workplace) is being preferred by employees and management alike.

With rapid technological advancements, it is now possible to stream live to multiple locations, with everyone involved being able to interact with one another, creating a near-classroom experience.

In the not-so-distant future, we may well see corporate we, where learners attend classes online, either at their own workplace or at their company HQs, in satellite offices, and so on – the popup campus.

ALSO READ: Benefits of Public Cloud Computing

5. Increased Scope of ESG Reporting

Environmental, social, and governance reporting is becoming more and more important today, not just because of increasing regulations and compliance requirements, but also due to pressure from directors on the board, investors, and other stakeholders like consumers, employees, candidates, etc. being accountable for ESG goals has become an essential element for corporates today, as everyone demands transparent ESG performance; everyone wants to know the impact you have on the environment and society.

Most stakeholders also want independent audits to be conducted so that the company can be certified properly.

How is this related to HR? ESG metrics are being considered in variable remuneration plans for executives; there is an increasing call for diversity in the workforce both current and new, developing the next generation of talent, transparency, and equity of pay.

Today, more prospective employees are looking at whether companies are serious about ESG before they make the decision to join.

Ergo, HR leaders will have craft strategies that will address the impact ESG reporting will have on their companies, and ensure that the corporate strategies are in tune with ESG impacts.

ALSO READ : How ERP Software is Playing Role to Improve Business Productivity?

6. Human and Inter-personal Skills

Since 2016, there has been a marked change in the skills required by companies.

In 2023 and beyond, the desired skills are more human than technical (which are still valued highly of course).

These include:

• Communication
• Collaboration
• Attention to detail
• Leadership abilities
• Customer service
• Cultural and social intelligence
• Inclusivity
• Focus on achievement
• Personal learning

Industry leaders stress the importance of focusing on the development of human skills in the time of rapid digitalization.

While these skills were always important, they are becoming absolutely essential today.

ALSO READ: What is Negative Inventory?

7. Hybrid Working

Hybrid working, which took off in a big way in the days of the pandemic has already become the new normal.

It is a win-win situation for employers and workers alike; employers can save on leasing or renting huge office spaces and paying conveyance allowances and employees can work from the comfort of their homes.

Hybrid of course refers to a combination of remote work and working on the company premises, or on-site.

New employees may be required to work initially on site, and then reduce the number of days they come in.

Many employees are also willing to take a cut in their wages to be able to work remotely.

It is important for employees and managers to have a clear understanding on the guidelines for remote working, including hours for collaboration, requisite tools and technology, team norms, and so on, for this method to be successful.

This can also help employees to be less stressed and more productive.

ALSO READ: Benefits Of Software As A Service

8. Better Employee Experience Through Collaboration and Events

With hybrid and remote learning and work becoming more commonplace, offices are undergoing a sea change as far as design and layouts are concerned.

While employees continue to demand flexible working arrangements, employers stress the need for physical presence every now and then.

It’s true that close networks and teams in immediate contact become closer through online interactions and remote work, secondary networks shrink and become weaker.

This means that there is less innovation and collaboration – and hence a need for employees to come back to the workplace.

It is vital that employers re-imagine the workplace to also provide opportunities to hold community events in addition to facilitating increased collaboration among employees.

ALSO READ: Second Phase of E-invoicing in Saudi Arabia

9. HR And The Metaverse

According to Gartner, a quarter of the Earth’s population is likely to spend a minimum of one hour in a day, in the metaverse.

Companies that want to do the smart thing, will start using this space to kick start some activities, like virtual events, meetings, career fairs, and onboarding new employees.

The metaverse can also be used for training and learning, as Meta is investing a massive amount to create a learning ecosystem that will be immersive and make learning much more accessible.

Companies that get on this bandwagon early, will definitely seem more attractive to the younger breed of prospective employees, and be seen as a futuristic organization.

They can engage easily with candidates in remote locations, and even boost productivity.

ALSO READ: Guide on ERP Upgrade

The organizations that invest in the metaverse will certainly set themselves above the crowd, and be seen as innovative, and truly invested in employee satisfaction and wellbeing.

This is also an opportunity for HR to redesign the virtual workspace; after all, how a space is laid out, defines how it is used by people.

The metaverse has opened the doors to greater collaboration, creation, and innovation, as it has no restrictions of the conventional physical norms – this also makes it more inclusive, as employees with disabilities will be able to participate without hassles.

HR leaders just need to ensure that the metaverse does not become a distraction, and must use it as a means to achieve an end – boost productivity and revenues.

10. Blended Workforce of Humans and Bots

Earlier, a blended workforce meant a blend of fulltime, contract, and part time workers; not anymore.

The rapid strides of automation have altered this definition irrevocably.

Today we have automated, self-serve solutions or robots, AI tools, and more, that have taken over several of the tasks performed by humans.

In such a scenario, managers and HR leaders must make sure that AI is transparent and they should be able to explain what it is all about; workers are likely to be needed to operate many of these AI tools, and they should understand how it works, and their apprehensions cleared.

For instance, will they themselves become redundant quickly because of the very tools they operate?

ALSO READ: Challenges and Benefits of CRM

11. Employee Burnout Is A Crisis

It is a very real crisis, and has to be checked, and checked immediately.

It is critical that you check in with your team members on a regular basis, and make sure that they are content and healthy both physically and mentally.

The workers of today are on the cusp of massive and radical workplace changes, and it is going to necessitate a lot more than the ordinary people management on the part of the HR leaders to ensure their wellbeing and workplace satisfaction.

It goes without saying that this crisis is a direct result of the Covid-19 pandemic.

It shows us that the role of HR has suddenly become a lot more complicated and involves strategy, and has become more cross-functional.

ALSO READ : Benefits of ERP for Accounting and Financial Management

Conclusion

HR leaders need to have a good understanding of the sweeping changes that are affecting human resources, and be able to provide proper training, comfortable workplaces, healthy environment, recognition and appreciation of employee contribution to the company’s success, and a lot more.

HR is a critical function of business, and it is vital that you manage your employees well. High attrition can be expensive for your company as you have to repeatedly incur costs for hiring and training new employees frequently. Tranquil ERP has a robust HR module that helps you streamline your HR activities, and save you time, money, and effort. Ask for a FREE demo now, and we will show you how it works.

 

Inventory is a critical asset for any business that deals in products, and they invest a good part of their working capital in producing or procuring inventory.

For this reason, it is very important that they manage inventory meticulously.

However, almost all companies face inventory shrinkage of some type and at some point.

Let us see what it is, how it’s caused, and how it can be minimized if not prevented.

What is Inventory Shrinkage?

Inventory shrinkage is simply the difference between the inventory purchased or produced as per your books (based on receipts and purchase orders or production records), and the inventory physically available on hand.

Inventory lost thus is money and profit lost, and even potential income.

It is therefore essential that you pay attention to this problem and take measures to curb it.

Calculating Inventory Shrinkage

This is essential, and it requires you to take a physical count of every item that you have in your warehouse, or store shelf.

Once you have counted this, simply subtract it from the inventory level as recorded in your books.

You can either calculate this by number, or by its value.

The method is the same; you calculate the value of the inventory on hand, and subtract it from the book value, to get the inventory shrinkage.

The formula is:

Inventory Shrink= Inventory count or monetary value as per books – count or value of physical stock available.

Similarly, you can calculate the inventory shrink rate.

The formula is:

Inventory Shrink in number or value / Inventory procured or produced in count or value.

The ideal shrinkage rate varies from business to business and industry to industry, However, businesses should have a maximum inventory shrink rate of 1 to 2 percent; of course, anything lower is even better.

ALSO READ: Must-Have Inventory Management Software Features

Importance of Calculating Inventory Shrinkage

It is an uncomfortable topic, but something that should not be ignored at all.

Inventory shrink directly affects your profitability; you must measure and track inventory shrink over time to understand how exactly it impacts your business.

Further, measuring inventory shrinkage will help you to diminish it in the future; accurately calculating inventory shrink can inform you about its cause.

Let’s say the inventory shrink rate in your business has always been low, and there is a sudden spike.

It is highly likely that there is just a miscalculation somewhere, and you can go through your records.

If it is consistently high however, you must take a serious look at the possibility of theft and fraud.

ALSO READ: Common Inventory Management Problems and Solutions

If Inventory Shrinkage is Ignored

It is imperative that you account for the shrink if you’re serious about growing your business.

Without this, you can not only lose profits, but also run the risk of wrong representations of the value in your books of accounts, and spiking your COGS.

This is what can happen:

• The most obvious result is that you lose products irretrievably, and will never know where they are
• The loss of money, income and profit is naturally undesirable, and will hamper hiring and expense management
• In the event of a mismatch between sales records and inventory reports, you may have to spend a great deal of time performing reconciliation between accounting records and receipts. When there are multiple errors, you can expect a visit from the Tax authorities.

Accounts Impacted by Inventory Shrinkage

It is necessary that you note down losses caused by inventory shrink, but first you must understand them, so that you can sync them with their value.

By analyzing the magnitude of the loss, you will be able to record in the correct books of account.

Small losses can be simply debited in the COGS account; however, a large loss has to be shown in a new account specially created for the purpose.

By debiting the loss in this account, you can manage your gross profit effectively, without including the mass loss.

To reflect the loss in your books you must show an increase in the shrinkage account and reduce the inventory account.

ALSO READ: What is Backordering? 

Reasons for Inventory Shrinkage

Let’s look at what causes the shrink and understand those reasons before you start taking measures to resolve it.

Here are the most common reasons:

1. Theft

This is the biggest cause of inventory shrinkage.

Large businesses can take measures that allow them to hold a person accountable for the shrinkage when it happens; but it may not be possible for a small business.

Theft is done by either employees or customers.

Employees have the most opportunities, as they are constantly in close proximity to inventory, know the security measures and location of CCTV cameras, and can easily work around them.

While it is difficult to prevent this, it’s not impossible.

Customers in physical stores are likely to shoplift small items as they can be easily swiped off shelves and dropped into handbags.

ALSO READ: Step by Step Guide to Order to Cash Process

2. Administrative Errors

These refer to incorrect data entry, erroneous recording of sales, wrongly counting the cash and so on, which can cause the wrong value of products recorded in the books.

3. Damage

Goods often get damaged in transportation of when they are stored.

This could be caused by improper handling which causes cracks and breaks, damage due to water, and so on.

Products that are so damaged cannot be sold, and this becomes inventory shrinkage, and a loss for the company.

4. Perishable Inventory

In addition to damaged products, you will also have to discard products that have perished.

These include food items, medicines, cosmetics, dairy products, produce, and any other perishable items.

Certain products cannot be sold beyond the printed expiry date, and it becomes obsolete of waste, and has to be thrown away, and becomes inventory shrinkage.

ALSO READ: What is Order Up to Level in Inventory Management?

5. Vendor Fraud

Unscrupulous vendors may over-invoice and under-deliver; that is, they ship and deliver fewer items than what is mentioned on the invoice.

Of course, there could be other reasons, but these are the most common ones.

Some are unavoidable, but by being meticulous, you can definitely attempt to reduce and minimize inventory shrinkage.

Methods of Inventory Shrinkage Reduction

Inventory shrinkage can be addressed by implementing the right actions.

Here are some of the most effective methods you can use:

1. Meticulous Recruitment

Nearly half of inventory shrink takes place because employees steal.

To deal with this, you can appoint one person to be responsible for the inventory.

Make sure this person is thoroughly vetted and evaluated on moral grounds in addition to their expertise; they should be given rigorous training as well.

Now if shrinkage happens (that’s not due to damage and perishing) this employee will be held accountable.

ALSO READ: Debit Note vs Credit Note

2. Educating Workers

Most workers are unaware of inventory shrinkage and how it impacts them; it is important to make them realize the consequences – how it can impact their paychecks, set back their progress for promotions, and so on.

3. Strict Security Checks

Security is absolutely essential for inventory.

Ensure there are adequate CCTV cameras in your warehouses and retail outlets, and anywhere else you have inventory stored or displayed.

Using transparent trash bags will prevent employees from using them to steal products by pretending to take out garbage.

Use tracking devices and security tags, especially for valuable items – or keep them under lock and key.

Install anti-theft alarms, and also have a guard to manually check people at the exit – these measures will act as deterrents for sure.

ALSO READ: What is Goods Received Note (GRN)?

4. Work with a 3PLs

3PLs are third-party logistics providers who function as fulfilment agents; they pack and ship your orders so that you don’t have to.

They take all precautions to ensure that your inventory is secure at all times.

3PLs provide a valuable service to ecommerce entrepreneurs, as fulfillment can be cumbersome and unproductive for them to perform themselves.

Reports provided by them help you to minimize inventory shrinkage at your end.

5. SKU and Barcodes

These methods are used to assign a unique identity to every product, making it easy to track product liquidity, and to check which products are selling quickly or slowly.

6. Split Responsibilities

This is an excellent way to ensure your inventory is safe; assign responsibilities to multiple employees for each phase.

For example, in your retail store, once the salesperson has concluded a sale, they get it billed by another employee who generated invoices in duplicate or triplicate, and the cash is collected by a third employee.

Assign different employees to prepare reports, check the inventory, study them, and compare them.

ALSO READ: What are the Benefits of e-invoicing for your Business?

7. Watch for Fraudulent Sales

This could be in the form of employees:

• Invoicing a larger quantity of goods sold and pocketing the extra quantity
• Setting up fraudulent customer accounts, and shipping products to those addresses with bills remaining unpaid
• Setting up fraudulent vendor accounts and paying for goods that are not actually bought, with the money going to the employee
• Redeeming fake coupons at physical stores on a big scale
• Colluding with vendors and taking kickbacks from them to defraud you

While this may sound overwhelming, it’s not too hard to prevent once you become aware of such things that can happen potentially.

One way to deal with this is preventing any one person from dealing with big orders.

Assign different employees for each step and make it more transparent.

ALSO READ: Different Ways to Improve Procurement Process

8. Prevent Fraudulent Shipping

It’s more difficult to catch fraudulent acts in warehouses as they are huge and busy, with inventory entering and leaving all day long.

Here it is vital you check the goods received notes for items tagged as faulty.

Make sure they actually exist, and they are really damaged.

Assign a different employee to check this, and a different one for shipping. without this, there will be a conflict of interest and chance for committing fraud.

9. Rotate Products

Products that become obsolete fast must be rotated; with a robust inventory tracking system, you can get timely notifications when products approach the end of their shelf life.

It also helps you identify fast selling and slow-moving items, and you can alter your sales strategies.

ALSO READ: What is an Inventory Control System?

10. Better Receiving and Stocking Processes

By implementing better processes for receiving goods and stocking them, you can minimize or prevent damages to new products.

Train employees on proper and careful handling in warehouses and backrooms.

Product placement should be done thoughtfully; for example, make sure the big and heavy items are on lower shelves, and so on.

Schedule inspections of your storage spaces including roofs, ceilings etc. so that the elements cannot damage your inventory.

Install fire alarm and prevention systems everywhere your products are stored.

11. Regular Inventory Level Checks and Audits

It is important to carry out inventory audits by an independent supervisor.

This will act as a deterrent for employees, and they will be less inclined to steal or commit fraud.

Genuine mistakes if any can also be detected quickly and rectified.

Detailed inventory record-keeping goes a long way in ensuring its security.

Physically counting inventory regularly will also help substantially to reduce shrinkage.

ALSO READ: Procurement vs Purchasing 

12. Automated Inventory Management

This is one of the best methods to minimize inventory shrink.

Tranquil ERP has a robust inventory management module that will help automate and streamline your inventory management, and reduce manual dependence and errors, speed up processes, and give better insights.

Inventory shrinkage must be dealt with quickly and effectively, and Tranquil can help you. Schedule a FREE demo to know how.

When we say cloud, we are actually referring to remotely located servers on which your data files are stored.

Cloud migration refers to the process of migrating your databases, services, IT resources, and apps to the cloud either in part or completely.

It could also refer to moving all of these from one cloud to a new one.

Often, businesses prefer to shift from legacy systems which not only get outmoded but also tend to become less efficient with time.

Servers become old and incapable of handling the extra workload as your business grows; firewalls are no longer effective; hardware and certain software solutions are not running as efficiently as before: all these become reasons for organizations to move to the cloud – if not in full, then at least partially.

ALSO READ: Detailed Guide to Understanding Different ERP Systems

Today, cloud migration has become imperative for companies who desire to improve performance and efficiency in real-time.

This is why the migration process needs to planned and analyzed meticulously so that it is executed perfectly, and ensures compatibility of the cloud and your business needs.

When we talk about formulating a strategy for cloud migration, we need to have clarity on the fact that it is not only about moving to the cloud, but also what you do once you are there.

For example, what options do you have to rebuild apps in order for them to have optimal performance in the cloud?

The process of migrating to the cloud is forcing companies to ask what app modernization is all about.

There are numerous factors to be considered, and regardless of their size, businesses need help in making the move to the cloud.

At Tranquil, we can help you make the transition smoothly, with conventional re-platforming, automated language translation, and other services.

ALSO READ: Influence and Importance of ERP System in Different Industries

What are the Most Common Reasons to Migrate To The Cloud?

Organizations face a host of challenges when it comes to server operation and maintenance, prompting the move to cloud servers.

The most common reasons for migration are:

• Sudden and/or huge spike in traffic which the legacy systems are unable to handle
• Not being able to scale server resources
• Inefficient processes
• High cost of maintaining servers on the premises
• Sudden increase in demand for operations
• Increased data storage requirements
• Quicker, more economical, and more efficient disaster recovery
• Challenge of geographical distribution
• Access to app related methods

ALSO READ: Benefits of ERP in Production Planning

What Are the Benefits of Cloud Migration?

Organizations that move to the cloud can benefit tremendously; quicker time to delivery, reduced total cost of ownership, increased innovation opportunities, etc. are some of the benefits they can expect.

Cloud access also makes organizations more flexible and agile, which is critical if you want to meet the demands of consumers and the market, which are always changing.

Of late, companies also migrate to the cloud to adapt and transform into flexible digital workplaces as there is a steep increase in online demand and for remote work.

The organizations who have already moved to the cloud or at least begun the process will have the advantage in the near future over those who haven’t.

These organizations are the pioneers and are leading the way in the cloud transformation.

Benefits of Cloud Migration include:

• Manage consumer expectations more efficiently
• Quicker innovations
• Improved flexibility and agility
• Decreased expenditure
• Deliver business results immediately
• Easy scalability
• Better performance
• Manage consumption better
• Can add resources easily
• Move to everything as a service
• Simplified IT

ALSO READ: ERP Configuration vs ERP Customization

Let us now look at some benefits in a little detail:

Efficient and Economical

Cloud operating models are more efficient, and use automating, AI and analytics, saving up to 50% in operations.

Easy to Consume

Thanks to the appliance-like service which is standardized, it can be provisioned quickly in an aaS model and saves almost 50% in startup time.

Workload Placement and Optimization

Workload placement has transparent business parameters at the base, and saves anything from 10 to 20 percent on total expenditure.

Security and Compliance

We understand the need for protecting the workloads that are the most important for your business, and the most sensitive information.

For that very reason, we have built security and compliance with relevant regulations into the apps and the migration procedures.

ALSO READ: Why is Cloud Storage Better than Local Storage?

How Does the Cloud Migration Process Work?

It is important to understand what is actually involved in the process of cloud migration before you actually start it.

The process can radically transform your business, so it makes good business sense to start by viewing the cloud journey from start to finish.

This will assist in identifying what activities and capabilities are required to execute the process efficiently across the major steps of migration.

Important Steps in Cloud Migration:

Before you embark on your cloud migration journey, you need to ask yourself what business value you hope to derive by moving to the cloud.

Moving to the cloud is not merely an exercise in tech; it is very important that you establish what are the precise objectives that you want your business to achieve.

Use the business goals as a foundation, and then you can build your cloud migration strategy on it, and develop your business case, stating the need for the move, and this can help you convince decision-makers and stakeholders to approve the migration.

ALSO READ: What Is Cloud Data Protection?

The strategy also includes deciding what are the applications you want to move to the cloud, the type of cloud environment you want to move to, and what the infrastructure should look like, eventually.

Applications such as those with varying load, public-facing apps with global reach, or those planned for modernization in the near future, are all perfect for moving to the cloud.

Some others, conversely, may be too difficult or risky to migrate.

Some may not just deliver expected returns on the investment.

Therefore, it is crucial that you decide at the very beginning, which apps you want to move to the cloud.

ALSO READ: A Brief Guide To Purchase Price Allocation (PPA)

Discovery and Assessment: What Where and When to Move It

It is extremely important for any business to manage risk appropriately.

Every business expects to become more flexible, have greater control, and reduce cost.

However, you need to bear in mind that the manner in which your apps may perform could change substantially due to changes in infrastructure.

Businesses must understand their present standing by evaluation and discovery: scanning and examining the current data, application, and infrastructure landscape to classify the present architecture and identify which apps and data would be the most appropriate to migrate to the cloud.

Cloud migration assessment includes activities like evaluating risk, mapping dependencies, and discovery of applications – all based on the usage at the time; it could also involve predictive analysis prior to migration.

Combined together, they allow migration planners to take informed decisions that minimize risk and ensure that the SLAs are maintained properly post the migration as well.

ALSO READ: On-Premise or Cloud Database Hosting

Moving to the Cloud

As a pre-requisite, existing apps need to be modernized; you may also have to develop new apps that are native to the cloud, and also alter the current infrastructure and architecture.

The goal is to create an operational model using completely new technology as well as culture that fosters rapid, efficient, and result-oriented innovation.

To have a smooth execution of the migration process, it is imperative that you have both the right tools for migration, as well as automated management.

This helps in ensuring quick movement and facilitates the delivery of consistent, repeatable, and high-quality processes.

Add solution accelerators and special skills to this mix, and you can have a virtual factory of cloud migration that can ensure a more rapid journey.

It is also very important to have in place a strong plan of management of the cloud journey, to ensure that everything proceeds as planned.

ALSO READ: How Do ERP and Cloud Computing Differ? 

What Are the Different Types of Cloud Migrations?

Based on the services that your business requires, cloud computing can be deployed in various ways.

A business has to consider two main factors while planning the strategy for cloud migration:

• The deployment model – private, public, multi-cloud, or hybrid
• What service category do you want to choose: Iaas, PaaS, or SaaS

There are several approaches available for your organization to choose from, so let us delve deeper into those different types.

These are the Key Cloud Migration Types:

Re-host (also called lift & shift)

This is the basic and simple form of cloud migration, where you simply shift an app from a local host on the premises to a cloud service (usually public), either platform or infrastructure service.

You can start with the smallest and easiest items that have the least dependencies, don’t impact the business greatly, and have few or no constraints of regulations.

You can move the more complex items as their maturity increases.

You make the move to an entirely new cloud-based operating system, gaining the advantage of reducing your operational expenses.

It could also serve the purpose of complying with new regulations and standards, for which you may simply have to upgrade application components.

ALSO READ: What is Dead Stock – How Can You Avoid It?

Re-factor

This approach involves altering the architecture of apps prior to moving them to the cloud, making them more suitable for the cloud environment.

This means you will need to modify your current software in part or wholly, so that you can get the full advantage of the cloud infrastructure, including the flexibility.

It is a very complex approach, especially when compared to the other methods, as it necessitates changes to the code.

To ensure that there are no functionality regressions, it needs to be tested meticulously.

It is also essential that you make sure that the app you build can utilize resources better in the cloud, or else you could incur heavy costs.

It is a time-consuming and expensive method; however, it can also deliver the highest ROI once your app is successfully running in the cloud.

ALSO READ: Why Tranquil is One of the Most Trusted ERP Solution Providers in GCC?

Re-platform

This is sort of half-way between the re-hosting and re-factoring. While it is pretty similar to rehosting apps in the cloud, you do have to modify some of the code so that you can enjoy the benefits of the cloud infrastructure.

Changing how the program interacts with the database to derive the maximum benefits of automation, and flexible database infrastructure are two of the most common modifications that are performed during replatforming.

You could say that with minimal code changes, you can enable better scaling, and take full advantage of the cloud’s reserved resources.

Tranquil is a robust ERP solution based in the cloud, and delivers superior results for businesses that implement this comprehensive business solution. Not sure how it works? Schedule a FREE demo now!