What Is Centralized Reporting, How Can It Help My SMB?

October 21, 2016/0/0

As a small business owner, you know there’s a lot of data that needs to be tracked. Choosing to invest in a centralized reporting system offers the opportunity to put your time and the time of your employees to better use. Here are some of the advantages that you will enjoy by utilizing a unified system to keep track of all your data.

Streamlining Processes

One of the great things about a centralized system is that it eliminates the need to post data in multiple places. The right system creates a cache of information that can be drawn on for multiple purposes. The result is that you spend less time focusing on data entry and more time making constructive use of the information at your fingertips.

Protecting Your Data

The right system does more than simplify your record keeping. It also has safeguards in place that make it possible to prevent anyone from tampering with or gaining access to the data without your express permission. A fully functional system allows you to assign credentials to each employee so they can use information relevant to their duties, but cannot access other data related to other aspects of the company.

The protection goes beyond assigning access privileges to employees. A competent system includes protections that make it more difficult for unauthorized parties to breach your security protocols, copy your data, and use it for their own purposes.

Generating Reports

Think of all the reports that you need to generate regularly. Wouldn’t it be nice to have a centralized system that could provide a profit and loss statement for any period of time you wish? How about the ability to generate an inventory that helps you determine what items need to be replenished in the next few days? The right type of system will come in handy when it’s time to prepare those reports to tax agencies and ensure the calculations are correct.

Tracking Bank Deposits

Cash flow is the lifeblood of your business. You need receipts to post to your bank accounts as quickly as possible. An integrated system makes it possible to ensure that electronic receipts from credit and debit cards are posted to your accounting records and that the funds are in your operating account quickly. This one benefit will go a long way toward ensuring that you are able to pay your creditors on time and avoid late charges and other fees.

Developing Marketing Strategies

Growing your business is essential if you want the company to remain viable in the years to come. The right reporting system ensures you always have information on hand that helps give direction to your sales and marketing strategies. For example, it’s easy enough to confirm that Product A is a brisk seller and has every indication of remaining that way for a long time. The historical data also indicates your inventory of Product B is languishing and investing more money in additional units is not in your best interest unless you can come up with a more effective marketing approach.

Choosing the right resources for your small business will go a long way toward making it a success. Take the time to day to learn more about centralized reporting systems and how the features would benefit your particular operation. After running a few simulations and taking a look at the results, it will be easy to understand why this investment will begin paying off almost immediately.