2021 Action Items: Stop Accounting Double Entry

March 11, 2021

Continuing our conversation on how distributors can reduce friction in their daily operations, today we’re going to look at the numbers, and by that we mean Accounting. We promise this won’t be a lecture on Accounting 101. Instead, this conversation will review this facet of your business and the significant role it plays in the success of your company.

Over the past 25 years, we’ve come across many distributors who transition from a standalone accounting solution or a combination of systems to an all-in-one ERP solution. It may not sound like a major change at first, but consolidating accounting into a single system that also relates to all of your other essential distribution departments can have a major impact on your organization. Let’s take a look at how this happens more specifically.

When it comes to sales orders, the more disparate systems you have, the more times those orders need to be entered. In the event that you use an accounting system and a separate inventory management software, every order you receive and manually enter causes double the amount of work for your team. Imagine a sales rep receiving an order with 10 lines worth of product. That order is entered, the product is picked, packed, and shipped, and now has to be relayed to accounting. The completed order is typically printed or emailed to the accounting department just to be keyed in again, line by line, for invoicing. This equates to unnecessary work for your accounting team and repeats what has already been done once. With separate systems, 50 orders a day also means 50 orders the accounting team has to enter. ERP software, on the other hand, eliminates the double entry, saving time and allowing your team to move on to other tasks.

Ideally, the accounting team can simply view available orders to be invoiced and select one without having to enter it again line by line as an order first. To save even more time within the invoicing process, users can perform automatic order billing. This function can group orders together that are ready to be invoiced and process them all at once. So, if there are 30 orders ready to be invoiced, automatic order billing can save what typically could take hours of your day and finish it in just minutes.

A real-world example of these benefits is made abundantly clear by our customer Empire Bolt & Screw. Based out of Spokane, Washington Empire Bolt & Screw has specialized in fasteners and industrial goods since the early ’70s. Our relationship with them started in 2009, and they immediately began reaping the benefits of a complete ERP system with integrated accounting. According to Empire Bolt, their accounting processes were able to be reduced to just 2 hours of work a week, which previously took up the equivalent effort of a full-time position! For more on the success of Empire Bolt, click here to access their case study.

If you’ve been considering a change from multiple accounting and inventory tools to a single ERP system, the benefits are clear. Innovative ERP-ONE+ software enables distributors to improve operational efficiency, eliminate redundant tasks, improve the accuracy of data, and much more. A simple rule to keep in mind is: “More systems equal more complexity and work.”

Top-performing modern distributors discover ways to streamline their processes by finding small time savings that, over the course of a week, month, or year, can truly make a difference in your bottom line. Are you ready to see how your team can start saving time? Contact our team today, and we’ll help you get started on the path to a better business.

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Highlighting distributor successes

Customers share their ROI achievements. Click each testimonial to read the full case study.

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Empire Bolt & Screw

“Out of the gate, our first cost savings occurred in accounting. What was previously a full-time job went down to just 2 hours a day. This change alone saved us $40,000 in year-over-year labor costs.”

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Patlin Inc.

“Distribution One has allowed us to deliver 30% more orders without having to increase our labor force.”

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The Nut Place

“ERP-ONE actually helps our business be more productive. We operate more efficiently because our software performs like a world-class product. And that’s not marketing hype. We trust in its reliability. It is one of the best decisions our company made.”

Colorado Industrial Packaging logo

Colorado Industrial Packaging

“ERP-ONE tracks product costs and sales margins for us… that benefit alone has added 4% to our bottom line after the first year of implementation and has more than paid for the cost of ERP-ONE.”

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A-Jax Fasteners and Tools

“Enhanced productivity, lower operational costs, higher service levels, and stronger customer relationships—it’s all been attained through our ability to provide continuous real-time data generated through the myriad of programs within ERP-ONE.”

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VLC Distribution

“Having spent 30 years on the operations side of distribution using SAP and AS400 software, I have not encountered a better system than ERP-ONE. The efficiencies and expandability has allowed us to improve our sales by $500,000 per employee in a year.”

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On Time Supply

“We had immediate visibility into which sales representatives were performing and which product lines were providing the best return for our business.”

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Cathy’s Concepts

“The ability to manage orders online has created greater efficiency in their business and has delivered more flexibility in modifying and tracking orders. Changes to an order instantly cascade all the way through the terminals and the processing stations cutting production time by at least 15%.”

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“I’m excited about the future. We processed hundreds of orders in the first week and project our webstore will be handling over 10,000 orders per year.”

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