Preparing for 2024 with your ERP System

Editor’s Note: This article was initially published in December 2022 and reviewed and updated in January 2024 to provide the most relevant and accurate information.

Every year brings something new – from new opportunities to new challenges. While 2023 was a tough year for most companies, with rising interest rates, inflation and slow or no economic growth, the outlook for 2024 is slightly more optimistic.  Inflation is almost under control, there is close to full employment, and a post-COVID economy is taking shape. Taking simple steps now will lower your risks and improve your stability in 2024.

You need to make fast, informed decisions to improve efficiency and take advantage of opportunities for growth and profit while managing risk. Finding an ERP system that loves you back lets you manage your entire organisation from a single integrated source of truth. Leverage the insights from your system to prepare your organisation for 2024 and beyond. An analysis of sub-ledger data, such as operations and job costing, will assist with reviewing historical financial performance. This will support robust forecasting for the year ahead and guide you in making your team more efficient.

How ERP helps you prepare for the future

Fast decision-making relies on having relevant and accurate data at your fingertips. Suppose you are wasting time manually collating data from disconnected systems or waiting on individual reports from different teams. In that case, you act on out-of-date information and put your company at risk. A comprehensive Business Management Solution houses real-time information from every department in your company. These systems support integrations that can create a connected software ecosystem to improve efficiency in your organisation. With access to live data, you can see a clear picture of your position and make informed decisions. For many organisations, a pivot to a cloud-based ERP will improve efficiencies and place them ahead of their competitors. Hybrid-cloud solutions are also available as a stepping stone on your pathway to the cloud.

Understand your most valuable organisational areas

Not all aspects of your business contribute equally. Your different departments will still fall into the Growth Share Matrix: “Rising Stars”, “Problem Children”, “Cash Cows”, and “ Dogs”. While each contributes to your success, you need hard financial facts to decide how you will treat each revenue line. Use the improved visibility provided by your ERP system to identify your organisation’s most and least profitable departments and direct your resources appropriately.

There are many effective ways of refocusing resources towards key teams without relying on layoffs or pay cuts. You can streamline your supply chain, downsize to a smaller office if your team can work from home, and reduce or eliminate outside professional services such as contractors.

Debt and financial liability

It is common practice to accrue debt to finance and grow your operations. This is not concerning in a healthy marketplace. But, in a slow  economy, excess or unnecessary liabilities can increase risk, limit your access to cash or cause investors to steer clear.

In slow economic times, you should look to the following:

• Pay off your debt, if possible. Using the debt avalanche strategy, focus on the debts with higher interest rates first.
• Reduce costs/expenses.
• Avoid new financial liabilities.
• Focus on cash flow.
• Improve receivable collection
• Improve efficiencies
• Build a cash reserve

A cloud-based ERP solution will give you greater visibility of your accounting and financial data, which, in turn, will help you execute the above strategies. Many advisors recommend the “debt avalanche strategy,” first paying off loans with the highest interest rates. An ERP system can also help you re-evaluate—and reset—your budget based on accurate data.

Take advantage of the visibility gained from your business management system to identify debts that can easily be eliminated.  Try to prioritise these items early in the new year so that you can focus on the future.

Automate, integrate, and innovate

Your business management system is the backbone of your organisation. Assist in decision-making by extracting valuable insights; free up your teams to focus on more profitable work.  You can also consider re-assigning team members to work on higher-level projects by using systems that support more complex workflows:

• Integration – best-of-breed add-on solutions extend the capability of your system, giving it even more functional power to support your organisation. Integrating connected service solutions into your single source of truth can give you invaluable time savings – never manually duplicate your data again.
• Automate – take the hassle out of repetitive, complex tasks like allocating payroll expenses and let your system take over. Automated workflows boost your system’s power, streamline your operations, and let your team work on the more important things.
• Innovate – your system can be customised to perform just about any task. Talk to our expert team to see if any of your processes can be taken on board by your ERP system.

Build a culture of resilience and perseverance

Not only are slow markets stressful for you as a business owner or leader, but it is also stressful for your team. The uncertainty can cause disruption and lowered motivation. It is up to you to reduce this stress by building a culture of resilience. A resilient workforce can rebound quickly from disruptions and is more likely to overcome significant challenges. Perseverance is the ability to take on challenges one step at a time. Being resilient and perseverant is easier when you know what’s happening in your business and the larger industry.

Keeping employees informed through open communication, collaboration, and visibility will keep them in the loop and reassure them that you have a plan for riding out the economic storm. And because you have entrusted them with the details, they will be more willing to stand firm, even in the face of unexpected challenges.

Your centralised ERP solution is the perfect platform for engaging and informing your team. It is a single source of real-time truth for everyone and everything in your organisation. Leverage the insights from your system and communicate openly and honestly with your team. They will love their work and be determined to overcome any challenge.

Mitigate online payment challenges in 2024 with ezyCollect’s SimplyPaid Portal

ezyCollect’s online payments portal is your one step solution to get paid faster in 2024. Using this portal, your customers can view and pay invoices online, from any location and at any time. SimplyPaid streamlines collections with a ‘Pay Now’ button embedded on invoices or statements. This feature allows debtors to pay a bulk selection of open invoices simultaneously and online. Payments are allocated automatically against the invoices in MYOB Advanced or MYOB Exo, saving you hours of manual labour. Contact samacs@kilimanjaro-consulting.com to learn more.

How Kilimanjaro Consulting can help

Kilimanjaro Consulting is the largest and most experienced MYOB implementation partner across Australia and New Zealand. Our team have the skills to customise your Business Management System to overcome your internal challenges and set you up for success in 2024. We help you sift through the facts and myths of ERP systems to help you achieve the best outcome for your business. You have already taken the first steps to secure your organisation’s future by investigating and investing in an ERP platform.

While your competitors scramble to determine how to respond to slow economic conditions, , you will remain calm, knowing that your business can withstand the storm. Your organisation will be supported by a robust and reliable MYOB Enterprise system and by the most stable and renowned MYOB business partner.

Talk to our team if you think there is a challenge on the horizon that your system is not fully equipped to handle. We will follow our specialised Business Process Improvement methodology to find and reinforce any areas of concern, allowing your team to remain efficient and focused on your future. Contact our team by calling 1300 857 464 (AU), 0800 436 774 (NZ), or by emailing sales@kilimanjaro-consulting.com.