Saturday, September 22, 2018

Challenges of Accrual based Accounting in Telecom for Prepaid Services


Over the last few years, an increased number of ISP/D2H/TELECOM/IPTV companies, public sector, NGOs, and governments have moved to accrual-based accounting for better bookkeeping reporting. Having a collaborative scalable solution has become a necessity for most households and commercial entities thus making it possible for ISP/D2H/TELECOM/IPTV companies to smile all the way to the bank. As a result, most ISP/D2H/TELECOM/IPTV companies have fully embraced accrual-based accounting methodologies to operate efficiently. Many have adopted the culture of keeping balance sheets, cash flow statements and profit and loss account for enhanced efficiency, improved accountability and easy management of assets. Generally, accrual-based accounting provides more inclusive financial information for companies.

While accrual-based accounting works tremendously well for ISP/D2H/TELECOM/IPTV, this bookkeeping reporting has its own challenges for the companies.

Accrual accounting forms one of the two major types of accounting methods for businesses using IFRS compliance. Under the accrual accounting, businesses record revenues whenever the transaction occurs and not when the actual cash payment for the sale is received. Likewise, expenses are recorded and recognized in the period for which the related revenue is recognized; under matching principle.

Accrual accounting is particularly useful for companies that have to report inventory or have large accounts payable or accounts receivable. The financial impact of loans, credit accounts and prepaid services are considered more carefully under accrual accounting.

Typical challenges of accrual-based accounting for ISP/D2H/TELECOM/IPTV?

Complex & not easy to manage: One of the major challenges of accrual-based accounting for ISP/D2H/TELECOM/IPTV is that it can be a bit costly, complex and difficult to manage. Secondly, accrual basis accounting demands that transactions be recorded as they occur. Unfortunately, most invoices fail to coincide with the actual occurrences thus leading to guesswork and estimations on the part of the designated accrual accountant. Such uncertainties make it difficult for accrual basis accounting accountants as compared to cash basis accounting. For proper planning & budgeting, all the compiled financial information has to be accurate and right at all times which is not always the case with accrual-based accounting.

Easy Deception of financial statements: Apart from its complexity, accrual-based accounting can easily lead to accounting malpractices. Its inaccuracies and estimations have become a loophole for numerous rogue companies who capitalize on these weaknesses to camouflage their own financial reports mistakes and weak points. In simpler terms, this kind of accounting can be advantageous in so many ways yet can be easy to manipulate for fraudulent purposes. In fact, it is alleged that most ISP/D2H/TELECOM/IPTV companies end up with bloated Planning & Budgets due to an inaccurate accounting of expenses and revenues. Financial statement mistakes and confusions are inevitable in this type of accounting which is a big disadvantage for most ISP/D2H/TELECOM/IPTV companies.

High Switching Costs are involved: Moving from the traditional cash to accrual accounting involves high costs which can be a huge challenge for many companies. Switching from one form of accounting to another poses a big challenge for ISP/D2H/TELECOM/IPTV. In reality, most start-up, small and medium-sized companies experience cash-flow challenges at inception. Well, the majority of these ISP/D2H/TELECOM/IPTV businesses start by embracing the common cash-based accounting. As time goes by, the business is bound to expand making it extremely difficult for investors to monitor their cash flows effectively. In such situations, it is wise and appropriate to move from cash basis accounting to the more effective accrual-based accounting but at a cost of course.

Additionally, accrual basis accounting can be time-consuming during conversion and exposes many ISP/D2H/TELECOM/IPTV businesses to bankruptcy risks. Lastly; this type of accounting requires ISP/D2H/TELECOM/IPTV companies to pay huge income taxes even before they have actually collected their revenues fully.

Advantage Oracle Apps: Designed in part by professional accountants, the Oracle system is updated whenever there are changes in either government accounting requirements or the generally accepted accounting principles (GAAP). Since accrual accounting tends to ignore time and instead focuses on economic events, cash flow can be problematic, but the Oracle system can also help to create statements of cash flow through the Oracle Enterprise One General Accounting System.


Challenges in Maintaining Dual Book keeping


If a foundation or a NGO is asked a common challenge which consumes their enormous time, effort & resources and which they would like resolve it would be maintain book of accounts as per the international and domestic guidelines. Maintaining different account books keeping as per statuary Like 35AC/80G/FCRA others and complete tracking of the account items as per mentioned categories.

There are several other identified challenges in areas like Grant Management, Project Accounting, Vendor Management, Transparency, Expense Management, etc. Being project based organization, it mandatory desired to manage its various projects financial records. 

Grant it can be several natures like single donor multi grant or multi donor single grant. The organization receives funds from all over world; hence it is mandatory to be covered under FCRA. However, they have to also maintain books as per the local accounting guidelines. There could be typical requirement like separate maintaining the projects covered under FCRA from the projects which are not covered under FCRA.

Maintaining dual accounting is not only necessary from statutory point but lot of other attributes like project, resources, expense etc. We cannot ask a user to make dual entries also it is difficult and time taking to segment the books of account. Hence the system should be designed in a way that it should be able to maintain books as per dual accounting standards. Using Oracle EBS ERP any organization can be able to achieve the dual accounting as per defined standards.

Known organizations like Public Health Foundation of India (PHFI), Save the children, Oxfam, ActionAid, HelpAge etc. have taken advantage of the systems to automate processes and take benefits.

Oracle is an effective application to capture various projects task-wise along with their scheduled time lines, cost incurred on each project since its inception, tracking and controlling of cost on each task of the project, was in need to create accountability of project to the team delegated, was in need to create schedule for the bills to be raised during the course of the project, required billing on the basis of milestones identified with the donors, required Statement of Expenditure for each project to capture cost incurred since its inception, required donor wise reporting, required to assess the profitability project wise and period-wise of its operations in India.



Thursday, September 20, 2018

How Can NAVFarm Help Livestock Management

Livestock management is essential to keep the business going. Its growth will be dependent on how NAVFarm for the farming industry helps livestock management through;
well each aspect of livestock business is handled. As such, financial software come in handy. Of course, you will need to have experts do the heavy-lifting but it will come down to the software. The software of choice should make financial tracking possible and easy. Today, the software in question is NAVFarm. NAVFarm is a prominent financial tool and its functions are undeniable. Setting up


  • CASH FLOW MANAGEMENT: There are many transactions happening for this type of business. Some money will be allocated for equipment and maintenance, others will be directed to poultry, paying workers and so on. Keeping track of all these transactions is overwhelming. NAVFarm, therefore, comes in to make it bearable. Through integrating it to the financial institutions, reconciliation becomes easy and getting bank feeds helps in data entry. You spend fewer hours trying to figure out where and when a certain amount was spent.
  • REPORTING CAPABILITIES: Livestock management will have several assets and liabilities, incomes and expenses.  The different sectors like dairy and distribution will require to be analyzed critically. NAVFarm allows tracking of these activities. The data can then be used to make decisions geared towards improving the business.
  • LARGELY AIDS AUDITING AND BUSINESS REVIEW: One of the features to appreciate about NAVFarm is the ability to update data without interrupting the daily tasks. For monthly and yearly closings, the farmer will have complete data to be reviewed by their accountants. In addition, these data files will be used for reference as they are recorded for a specific period of time.
  • CLOUD BASED APPLICATION: The fact that this tool provides one with the ability to work online makes it more beneficial for livestock management. Anything is on the cloud. This means your farm's data is safe and accessible anytime and anywhere. The on Cloud feature cuts down expenses such as maintenance for on-site servers and upgrades. Moreover, the NAVFarm online has a backup system that livestock farmers will find helpful.
  • HELPING RUN A SMOOTH LIVESTOCK BUSINESS: Livestock keeping can be a pain, especially during processing payrolls. The filing deadline must be met and if not so, everything goes wrong, therefore, comes to the rescue. Working with third-party apps, one can do different tasks on the go from their mobiles. No later payments, late filing or even late data file transfers. What is done through mobile apps is in sync with NAVFarm online provided the apps are Intuit approved.


Basically, NAVFarm Livestock management will be taken to higher levels by integrating NAVFarm as your financial software. Tracking, reporting, cost-cutting, and auditing will be much easier with NAVFarm



Making Secondary Market Perform for You Responsibly


It is not a wonder that where the money is, is usually crowded. Even so, the secondary market is yet to reach those heights. Some may have missed this sector and others, well, have made a fortune. The secondary market is creating great opportunities to make large profits and is increasingly transforming into a lucrative business.

But before digging deeper, just what is a secondary market? It is where secondary retailers resell securities and other products. Basically, it is an aftermarket. The point of sales can be services, bonds or stocks. Now, being part of this market does not just happen. You have to take care of the logistics involved to benefit from the market.

So, to make the secondary market perform the right way, best practices have to be embraced. These practices will be guided by;

It is by knowing where the deal lies that you can make a secondary market perform for you. The distribution of items will dictate the possible outcomes. Not all merchandise deserves to be done with if they do not fly off the shelf as expected. Some of these items like the appliance parts are still viable for the secondary market. The opportunity to make a profit still stands as the initial retailer accounted for the surplus inventory loss.

The knowledge you have about what you are selling: How else do you find leads, initial customers, and markets for the products at hand? It is a mistake to enter the secondary market with products or services that you barely know. Being familiar with the product lets you remain within a profitable and reasonable selling price. You are able to know the purchase price and check for any defects. All this information makes you conduct business in the secondary market confidently leading to large profit margins.

The plan: It takes a lot to be successful in the secondary market. This is why you will need a plan, a practical plan for that matter. You will need to be patient and do thorough research on who your customers will be and your product outlet. You can also create virtual stores which will work well with the current technologies available.

That is, it! Every one of the above has to be in your mind for a responsible secondary market business. After the business picks up, do not be comfortable with the profits. Diversify and try out other products. Slowly but surely, your secondary market will grow to bring even larger profits. Analyzing this market, knowing where the deal is and having a plan is all you will need to perform responsibly.

Prudence we believe in effective utilization of the investments made on the ERP platform by extending its capabilities through usage of the latest technologies. Hence by creating the platform “NAVOne” we can help you to extend your supply chain to the retail users keeping seamless integration with common ERP like Oracle & Microsoft Dynamics. NAVOne application is useful for businesses into Primary and Secondary sales management.



Monday, September 17, 2018

Challenge of Managing Inventory for D2H Operators

The digitization era is finally here. People are getting used to the superiority of D2H technology as compared to the cable operators. The technology provides subscribers with direct signals to their TV through a receiver. This is awesome for the clients as the separate cable connections are done away with. However, it presents a set of challenges to the D2H operators especially in terms of inventory management. This, however, is not the end. The Oracle EBS provides a light at the end of the tunnel. The ERP system solves D2H operator problems for better business management.


INVESTMENT AND PROCUREMENT PROBLEMS
Keeping track of inventory investments for the operators is burdening. The investment of the equipment needed is also capital intensive.  The enterprise suite therefore gives operators power to control their procurement troubles for cost effectiveness. Oracle EBS helps the D2H operators to manage supplier risks and enforce certain policies in order to land the best suppliers for their inventory. It does not get easier than that.The operators are able to keep delivering their services with great inventory management thanks to the oracle enterprise suite.

CUSTOMER MANAGEMENT
D2H operators have a challenging task to keep their customers satisfied. They have to ensure the customers embrace D2H technology. This can be a challenge especially if the data collected is inaccurate.For this reason, the operators have to possess an inventory software integrated with customer relationship management tools. With oracle EBS, the CRM solution is readily available to assist such companies make decisions.The CRM will offersales, marketing and service information aimed atimproving D2H operators’technology and customer relations.

FORECASTING CHALLENGE
Such superior technology will keep changing. Improvements will be made to make it even better. One essential factor to ensure the changes are for the better is to have accurate forecasts. Analyzing the state of the market and what the future holds manages D2H operators’ inventory.This is challenging but the Oracle EBS takes care of it by providing insights through reports based on real time information. These insights come in handy in planning and budgeting of the company’s inventory.

RISK MANAGEMENT
D2H operators face great risks trying to provide what they promise to clients. These risks could lead to their downfall particularly if they affect the inventory management efforts. ERP systems such as the one Oracle provide helps regulate and avoid the risks. It has tools for monitoring and evaluating the risk indicators to improve businesses.

All in all, D2H operators should be always prepared to cope with any challenge coming their way. They can start by being part of the evolutionary Oracle EBS which has given businesses the power to make their services exceptional. This ERP system will turn all the negatives affecting inventory management into positives for better D2H delivery.

ORACLE INVENTORY MANAGEMENT CLOUD
Intelligent inventory management is crucial to the success of your company.  Effectively managing inventory balances, movement, and turnover impacts your bottom line, and a good inventory management strategy saves you time and money.  Oracle Inventory Management Cloud is a complete, modern materials management solution that can help you effectively manage the flow of goods across your business organizations.  Use this true cloud solution for clear, accurate, real-time inventory balance visibility, efficient warehouse organization, rapid material movement, improved efficiency and productivity, optimized transportation plans, and ultimately satisfied, returning customers.

Oracle Inventory Management Cloud is a broad suite of products that includes Inventory Cloud, Cost Management Cloud, Financial Orchestration Cloud and Supply Chain Orchestration Cloud. Together these solutions form a complete physical and financial materials management core of the supply chain supporting Ideate-to-Commercialize, Plan-to-Produce, Source-to-Settle, Order-to-Cash, and Plan-to-Maintain integrated business flows.


ART OF SIMPLIFYING PROJECT ACCOUNTING

Project Accounting refers to the facilitation & integration of vital tasks in the management of a project. The major difference between this kind of application for accounting and the common traditional accounting is that it solely focuses more on any given project’s transactions while maintaining categorize your accounting information. Oracle EBS is a leader in providing solutions for project based industry. Advantages of Project Accounting include easy tracking of time, resources & key tasks affiliated to any particular project, leads to a healthier project account financial statements and tracking. It works favorably in larger companies where efficiency is a must have requirement, for easy tracking of various transactions across numerous departments within a company.



Accounting is a key requirement regardless of the kind of business you operate. Failing to keep accurate accounting records can easily be the end of your business. Every successful business owner knows the essence of keeping track of their financial reports, project expenses, and collection of all payments among others effectively documents in one cloud.

What is the easiest ways of simplifying Project Accounting?

Stay Organized: Project Accounting becomes very easy when your system is well organized. Things become easier and better when you are able to keep track of your entire project expense receipts in a consistent manner in one spreadsheet within the operations. Unfortunately, most small-scale investors lack consistency in regard to tracking and sorting project milestones. The good news is that one can take full advantage of the Oracle Projectsto stay organized. One can easily take stock of all the receipts and archive them for future references. Being well-organized also means being able to keep accurate records/receipts of all donations or contributions made by your business and managing all reports efficiently.

Take Advantage of Proven Accounting Tools: It is essential to make good use of budgeting and analytical system to build an accurate invoicing system for your business in less timewith enterprise level and departmental level planning process. The advantage of planning and budgeting is that it has made it easy for businesses to keep their accounting records well organized, secure and easily accessible. For this to happen successfully, you must ensure that you choose the most appropriate business accounting software for your company. In addition, you should use modern accounting tools to build an effective payroll system as a way of simplifying project accounting.

Invest in high quality, secure and compliant Software: Investing in reliable and high standard software is highly recommendable for anyone looking for an effective way of simplifying project accounting. Don’t hesitate to splurge on secure and compliant software to safeguard your business data’s safety and security. Remember to protect your Project Accounting software and servers with 265-bit SSL encryption for maximum security to prevent intruders and hackers from accessing your systems.

Maintain up to date Current P&L Statements: Keeping well-updated profit and loss accounts is imperative as a way of gauging your project profitability. It basically makes it easy for you to keep track of your project account as well as monitor the health of your business effectively at any given time.

Use Modern business applications for bringing precision: Linear approach to modern day business is not just enough. Recipe of success also contributes the attribute of latest business tools which not only help in achieving a structured approach but also bring precision into business decisions. Solutions like Oracle Planning and Budgeting which is a derivative of Hyperion(renowned application), Taleo of Talent onboarding & performance evaluation, Netra grant management etc.

How Oracle can help you in maintaining books accurately: Typical organizations like Telecom (EPC Tower), Realty & Infrastructure, Development Sector (NGO) etc. are prime examples who are benefitted by such application. Mapping critical information Like into single accounting structure categorized into various segments is not an easy. Scenarios like maintaining single book for FCRA & Non FCRA or creating sub ledger for every project to categorize each and every transaction can be referred as common pain areas which can be easily managed by Oracle EBS projects.


Tuesday, September 4, 2018

How Microsoft Dynamics help to B2B Ecommerce Business

As we all know that B2B Market is growing the market share roughly 59% of retail businesses. As their business challenges applies to more than growing there revenues and sales. Some of major areas of concern identified as B2B business challenges, as well as some suggestions for understanding the requirement of a product which will beneficial for B2B Business.

For the Many B2B companies, it can be challenging to define ERP Requirements. This is especially true for B2B companies that may be running an older version ERP that may not have capability to handle the B2B business requirements.

Challenges of identify ERP for B2B eCommerce business
  • Business Complexity
  • No Single Source of Data
  • Define ERP Requirements for E-commerce
  • Inventory Management
  • Investment on Technology Solutions
  • Long Journey to improve their use of Data & Tool
  • Social Data
  • Ideal Client Profile
  • Market Intelligence
  • Relationship Intelligence
  • Past Schedule and Repeat Orders
  • Customer Royalty and retention
  • Marketing Challenges
  • Countering competitions
  • Improving internal process

Benefits of ERP to B2B Business
  • Easy to Integrate with CRM, Website or other portals.
  • Single Source of Data Finance, Sales, Purchase, Warehouse, Bank, wallets.
  • Work with existing process to manage order including credit control, pricing, Order tracking etc.
  • Easy to manage customer data and product Management
  • Cloud optimized Solution.
  • Manage & Track on Sales Leads
  • Real time update on Item Availability, Revenues, losses, Payments, Refunds
  • Real time reporting any time
  • Interlink finance with Sales, Purchase, warehouse, Vendor
  • Improved demand and supply planning
  • Reduce Costs and losses
  • Ability to track marketing and advertising expenses
  • Intercompany transaction handling
  • Customer-specific catalogues, prices and terms
  • Boost the Sales and Save the cost.
About the Author:
Kunj Bihari Agrawal is a senior functional consultant for Microsoft Dynamics Nav. Kunj has a rich experience of over 11 years in finance domain & India statutory in MSD NAV. He has a passion for exploring possibilities of easing the entire ERP migration for corporate and is currently working with various government and private focus groups in ironing out the creases & roadblocks for GST migration on various technology platforms. He can be reached at: kunj.agrawal@prudencesoftech.com