How to simplify decision making in companies?

A wrong decision can compromise the success of a business. It is vital that managers have all the tools they need to make informed and right decisions. The market is increasingly competitive and consumers are becoming more demanding and these two factors make it difficult to make the right decision. In today’s article, we will realize how we can simplify decision making in companies!

Correctly identify the problem that needs to be resolved

Decision making, in most situations, is aimed at solving a business problem. Thus, in order for the best decision to be made, it is necessary to identify its origin and list all possible solutions. This step seems basic but is one of the most important and one of the most underestimated. Deep analysis of the situation will give us the data we need to know which path to choose.

Real-time monitoring software

It is very important to have a real-time business monitoring system that allows you to set business alerts so that you are advised whenever any important situation requires immediate intervention. Multipeers is a BAM system that allows you to define business alerts that warn you whenever a situation requires your attention. In this way, you will always be aware of the events of your business and will be able to decide in good time. Many of the decisions are made based on reports a few days late, which makes the company have a reactive and non-proactive action. With Multipeers you will be able to always be ahead of the competition and decide the best way possible for the business.

Define KPIs (and monitor them)

The KPIs is related to the previous point. A KPI – performance indicator – is a value that demonstrates whether the company is achieving its key objectives and whether it is on track. The company must have well-defined general KPIs. Likewise, each department and employee must know their KPIs so that they can work towards their goals and help the company grow. “If we do not know where we are going any way”: it is essential that each employee knows his role in the company so that he can guide his daily work in order to achieve all his goals.

Evaluate all options and ask your team to collaborate

Before making a decision, the manager must identify and analyze in detail all available alternatives. The same problem can have several solutions and the manager should rely on the help of his team to choose the best way forward. In this way, not only does the company win, everyone’s opinion will certainly be better than that of a single person, as employees will feel more motivated because they feel that they are an integral part of the process.

Analyzing data in real time is increasingly a reality in companies around the world. Business happens at a very fast pace and it is essential that you know what is happening in your company to make the most appropriate decisions for your business.

Get to know the advantages of the BAM system and learn how these tools can help your business!

Everything You Need to Know About Business Financial Management

Have you ever stopped to think about the importance of corporate financial management? We can say that financial management is so important, that all managers and teams should take care of it all the time. Whenever any employee identifies flawed processes or suggests some new way of performing tasks that influence business costs, he or she is participating in financial management. The financial sector of a business is one that takes care of the health and survival of the business. He needs to identify how the flow of resources occurs, what the volume, what the main demands are, and the very viability of the business.

Business financial management begins in the business plan

When we talk about a private company, it is natural to understand that the people who invested money in the business want to make a profit. So, financial planning begins on the first day as soon as you begin to structure your business plan.

What do you need to identify when you will start a venture?

– What is the initial investment?

– What is the annual cost of the business?

– What is the required working capital?

– What is the estimated billing?

– What is the expected profit for the period?

– How soon will investors recover the investment?

All of these questions need to be answered already in the business plan. It is clear that only the history of the company can give greater precision to these estimates, but it is fundamental that the entrepreneur makes a very detailed study of the opportunity that generated the entrepreneurial initiative.

Annual Planning

In general, companies make their financial planning for a period of one year, which corresponds to the accounting year. All areas of the company are heavily dependent on the decisions of the finance department as they depend on their budgets and action plans. The main financial planning tool is the budget. It is the financial sector that, based on predictions of inflows and outflows of resources, determines the overall budget. It is up to the company’s management to identify in which available resources will be applied. The financial sector can also identify the need to cut costs, aiming at preserving the health of the organization, as well as the application of capital reserves in the financial market. Returning to the budget, it identifies expected revenues and expenses, including financial expenses, if there is debt. In addition, it identifies the payment of debts scheduled for the period. With this measure, it identifies whether the budget is a surplus or a deficit, whether there is a need to reduce costs or generate new revenues.

Cash flow

The annual budget identifies the inflows and outflows of financial resources over the period. There is, however, another important control, which is cash flow. Cash flow seeks to identify cash flows on a day-to-day basis. It is possible and necessary to do an annual cash flow planning. However, this tool should be used on a daily basis. Its purpose is to prevent the company’s cash flow from being discovered, harming the operation and / or generating indebtedness to replenish working capital. Budgeting and cash flow are financial planning and control tools, but they interfere in all sectors of the business. Therefore, it is quite correct to say that financial management has to be done by all managers and employees.

Risks and opportunities as factors of financial equilibrium

In saying that everyone should participate in financial management, we assume that this is a dynamic task. Planning serves to make events more predictable, but rarely will everything go as planned. The company can identify a great opportunity and increase the billing. Everyone is working for it. At the same time, unexpected expenditure may arise from a risk ignored in planning. An accident at work, poor supply chain, raw material enhancement, anything can happen, especially if the risks are not calculated. Therefore, financial planning must always be pessimistic.

Control Tools – ERP/Accounting

On the other hand, the company must also monitor the results. Accounting, as we know, is responsible for preparing the financial statements, which provide a financial picture of the company, which includes the result of the year, the balance between assets and liabilities and the equity situation. In addition to meeting fiscal demands and taking care of the proper collection of taxes, accounting contributes to financial control with powerful planning tools, including the annual balance sheet. At the other end of the process are ERPs, powerful management tools that allow managers to have real-time control over accounts payable, cash flow, revenue evolution for the month, and other business variables that impact on finance. Remember when we said that financial management is so important that it should be everybody’s business in the company? It is the IT and management tools that can make this possible, giving all managers a unique and up-to-date view of the business situation. The marketing department, for example, can better understand purchasing behavior and thereby improve the quality of the turnover of goods in the stock and on the shelf, in order to generate smaller cycles and less waste of resources. This will contribute to the improvement of the company’s cash flow.

The big step that all companies will need to take is the integration of business management software with the accounting office system. The idea of ​​accounting integration makes one think of the choice between going up 50 floors of stairs or taking the elevator. Through it, the accountant has remote access to all information and documents with book value. It migrates this information straight to your system, without having to leave your office.

This simple tool reduces to almost zero the risk of errors in the preparation of the financial statements and eliminates all the tasks of the company related directly to accounting. Most important, though, is that your demos can be published almost in real time.

 

An article by GestãoClick

The Importance of Process Control for New Business

Starting a new business can seem like a complex challenge. With several variables, the analysis needs to be precise and well planned. Therefore, some factors are more relevant at this time, such as financial resources allocated, fiscal and accounting management, labor charges … All these aspects, when added together, converge to a tangle of details that need to be managed very well by the manager.

Therefore, a good entrepreneur needs to consider the importance of process control when building your business. The processes are sets of actions applied in a specific sector of the business, aiming to optimize the results and standardize the performance of the production flows. That is, processes create behavior patterns that must reflect the company culture and the most effective way that each involved element should accomplish its task.

Why do processes matter so much?

Process control directly affects business productivity. As business relationships are currently at increasingly high speeds, harmonizing processes within a company ensures the execution of the services in the shortest possible time and with greater efficiency at the end of the process. All this starting from a single point and obeying rigorous steps, which also facilitates when identifying problems in the corporate structure.

In addition, processes allow the reproduction of your content. In this way, it is much more practical for the company to structure future actions based on the way the procedures are performed frequently. Thus, processes increase predictability and control over all sectors of the enterprise, if managed fluently and skillfully.

New business and process creation

Business management of a new business is very demanding. As there are no processes yet defined, they must be created and put into practice, which generates a certain period of accommodation and adjustment. The first step to creating a process control is to map all the actions that your company performs, separated by sectors. Therefore, it is necessary to look at its organizational structure, the departments, the various professionals and the numerous forms of work.

With the planning directed to the result of the actions, the manager needs to create and guide all processes for maximum efficiency and fluidity. It is crucial that there are loose ends or redundant steps when structuring a work pace. The more straightforward and clear the process planning, the easier it is to implement and execute it routinely.

The role of business management software (ERP) in project control

As it was analyzed, the process routine is a very complex element and requires a lot of application of the manager when coordinating its execution. However, there are currently several solutions that facilitate this work. Business management software is one of the most relevant ways to manage an enterprise’s process chain.

One of the success stories in the business management software market is EMC Gestão Empresarial, an integrated system that efficiently and solidly manages processes and other areas of your business. One of the hallmarks of EMC Gestão Empresarial is its modular structure that encompasses all business sectors, facilitating the identification and control of the process routines of each area of ​​the company.

As an ERP needs to be centralized and versatile, EMC Enterprise Management is right in the interaction with all the data sources that nourish the analysis of your business. This affirms its efficiency in controlling the processes and ensuring the joint improvement of actions related to each sector.

If you are interested in starting your business or optimizing the processes of your already consolidated company, please contact IT Refresh, the official reseller of EMC Business Management software. Purchase one of the most modern and fluid integrated systems on the market and prove the value for money generated by EMC Systems solutions.

An article by: IT Refresh