Living in the information age, the success and longevity of a business depends largely on how it is able to collect, process and interpret data from a multitude of sources, including one’s own inventory and accounting ERP software. Effective reporting and analytics go beyond the collection of the data itself, involving a broad spectrum of reporting techniques to provide management with valuable information that will assist in making insightful business decisions. Reports concerning inventory, production, and sales all reflect the bottom line of a business, and should be reviewed on a consistent basis to uncover trends and opportunities. However, as a business collects more data, the difficulty lies in actually finding the time to review the information and draw conclusions that will help grow the business moving forward. Ideally, an optimized reporting process would inform managers of only the most relevant information they need in order to make well-informed decisions. Inventory and accounting software with robust reporting and analytics can help business owners automate and streamline the reporting process. Reporting has become increasingly important to small and large businesses alike, and if set up appropriately, can provide the following benefits:
- Increased Communication:
By implementing an effective internal reporting system, you enable information to flow upward, downward, or laterally, reaching the intended recipient in a timely manner. Automated reporting techniques, which come in some inventory and accounting platforms, take this notion one step further by allowing for reports to be emailed to specific stakeholders on a regular basis (perhaps daily, weekly, or monthly).
- Increased Productivity:
In order to remain productive in today’s ultra-competitive environment, organizations must be flexible enough to respond swiftly to industry changes and opportunities. A large emphasis has been placed on meeting the unique needs of targeted consumer groups in order to distinguish oneself in the market. In order to achieve these goals, businesses need an inventory and financial reporting system that supports this notion and provides relevant information to management in a timely manner.
- Increased Accuracy:
The overall accuracy of managerial planning, budgeting, and forecasting is largely dependent on the accuracy and completeness of the information available when making those decisions, and a business’s ability to manage analytics. By having a reporting system in place that provides both relevant and accurate information, the key decisions will have been made with the proper decision making tools.
- Increased Timeliness:
After data is collected, the question remains of how to present the data to business owners and decision makers in a thoughtful and insightful way. Not taking this into consideration can result in crucial information regarding a business’ operations getting trapped in an endless amount of spreadsheets, and ultimately rendered useless or untimely. Managers need the information displayed in an effective manner in order to easily and quickly analyze it. That’s why many businesses turn to inventory and accounting software that has out-of-the-box report templates available, tools for managing analytics and the ability to generate immediate reports specifically tailored to their business.
It’s no secret that to stay relevant in an increasingly global and competitive marketplace, managers must have appropriate information readily available to them. By implementing an effective reporting and analytics system, a business can increase communication, productivity, accuracy and timeliness. This will aid in creating a sustainable environment where management can make thoughtful and informed decisions, in order to grow the business.