Preparing for 2023 with your ERP SystemYour Business Management System is one of your most important resources when it comes to preparing for the new calendar year.
Every year brings something new – from new opportunities to new challenges. The combination of rising interest rates and other economic factors will likely lead to slower overall growth in 2023. While Australia and New Zealand may avoid a recession, the coming year will still pose challenges for your organisation. Taking simple steps will lower your risks and improve your stability in 2023.
You need to make fast, informed decisions to take advantage of growth, profit, and efficiency opportunities and reduce risk. An ERP system is a comprehensive business management solution that stores your data as a single source of truth. Leverage the insights from your system to prepare your organisation for 2023 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 the correct 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 In that case, you act on out-of-date information and put your company at risk.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 the clearest picture of your position and make informed decisions. Organisations that have not yet made the pivot to a cloud-based ERP are at risk of falling behind their competitors.
Understand your 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 the hard financial facts to decide how you will treat each revenue line. Use the improved visibility of 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, as the economy starts to slow, excess or unnecessary liabilities can limit your access to cash or cause investors to steer clear.
In a period of economic downturn, 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.
- 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 before the end of this 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 your satellite 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. Automation boosts your system’s power, streamlines your workflows, and lets 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 is a market downturn 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.
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 2023. 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 an economic downturn, 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 firstname.lastname@example.org.