4.4. Good business practices

Let your financial statements do the talking

How do you estimate your work in progress ?
In order to produce sound financial statements, it is important to throroughly evaluate the work in progress at the end of every month.  Something that, for the most part, is an approximate calculation. SIGM evaluates in a gradual fashion your work in progress and your actual data. You can then have complete confidence in your financial statements, which are highly accurate.

Do you know what your inventory is worth ?
Evaluating variations in inventory is essential for generating accurate and reliable financial statements.  The value of your inventory itself depends on the accuracy of your inventory quantities that fluctuate greatly due to flows triggered by manufacturing and distribution.  SIGM records these flows ; you can view them in detail at any given time, in addition to accurately validating the value of your inventory. As a result, your financial statements are more precise.

Are your financial statements prepared according to the cost of goods sold (COGS) ?
SIGM generates and provides all accounting entries when you use the cost of goods sold (COGS) method instead of the inventory variation method. Your financial statements reach a level of absolute precision, reflecting your profitability more accurately.  You are thus able to better understand and interpret the reasons for this profitability.

Manage your production costs

Are your production costs accurate ?
The “SIGM-Productivity” module is an exceptional tool that automatically generates estimated and actual financial statements for each product. Even overhead is taken into account. You are able to know your exact ROI for each project. You can also evaluate which products produce the greatest return.

How do you evaluate your productivity ?
Productivity analysis reports summarize the estimated and actual time of your activities by product line. It is therefore very easy to identify non-productive product lines and operations that must be taken into account. You are more productive and therefore more competitive.

Note that even indirect work must be productive…

Are your employees efficient ?
The “SIGM-Efficiency” module systematically measures operations performed by your employees. This module enables you to identify shortcomings in employee activities. You can therefore quickly see where time is being wasted and subsequently harming your productivity.

Customize your software

Today, IT systems are an integral part of daily operations. The majority of SMB employees spend their days in front of a computer screen. Is this really productive ? Does it add value to your product and to your client ?

In order to distinguish your company, you must provide better service at a lower cost than your competitors. Having a software that is more efficient and better adapted to your needs becomes a powerful tool that will give you that competitive edge. But be careful, such an investment should not be made at any price :

Choose a generic software that is configurable over a custom-made product without the option for customization
Today, IT changes much too quickly for you to finance the complete development of your application.  You risk paying substantial fees for system maintenance. Conversely, a generic software that does not offer the option for customization will get you nowhere. How can you distinguish your company if you use the same tools your competitors do, without the option for customization?

Even the smallest of companies benefit from investing in its software
Do you really think that not investing in IT will make you the leader in your sector ?  Let’s be serious ! Sitting idly by is the worst you can do. Companies that achieve good profit margins do so beause they invest, year after year, in optimizing support tasks. They perform the same tasks as you, but much more efficiently. They invest 1% to 2% of their IT turnover.  Remember that an employee using Excel generates a recurrent cost whereas an automated function within a software does not.

Before you do anyting : calculate your ROI
In software development, surpassing costs and deadlines is common.  Calculate the return on investment (ROI) of all functionalities you wish to develop and compare it to the development cost. If your ROI is achieved in less than a year, don’t hesitate ! This one small business decision will produce substantial returns in the years to come !