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Management Program or ERP Software?

What distinguishes a management software from an integrated software for the automation of business processes?

Many people call the first “accounting programs” or “business management programs” and the second “Software Erp” or “integrated business systems”.

We go beyond simple definitions and try to understand the main differences.

Accounting and management software

Accounting software is mainly used to comply with regulatory requirements established by applicable laws (calculate VAT to be paid, withholding tax, newspaper, balance sheet, etc.). Almost always these software are used by administrative employees who work mainly for the above purpose. Other business users do not use these procedures and are therefore excluded from the system.

In many cases, especially in the smallest businesses, the choice is made on the basis of suggestions from the accountant, who obviously recommends using a software compatible with the one he used in the studio, without considering that the accounting of a company may require criteria of organization and evaluation very different from those set for the sole purpose of fulfilments …

With the management software for companies, in addition to the functions of accounting, we find other functions such as sales management, purchases, warehouse, production etc. In this case, therefore, many business users use management software to enter data and to consult updated information.

Not just functionality

However, the fact that a software has multiple features is not sufficient to create efficiency and automation of operations.

Many management software, for example, have been written over many years of activity, adding new modules and functionalities over time. This approach is often not efficient because the system does not have an overview of business flows and above all there are no functions to create automation rules that connect all the user’s operational steps.

If we take, for example, the accounting functions of a management software, we will see that administrative users manually perform a series of operations that are completely free fromactive and passive cycle documents (sales and purchase invoices, receipts, payments, etc).

What can this do?

First of all, the accounting facts could represent a different reality from the management one. This is not a secondary aspect, especially for the ownership of the company, which in this way does not have adequate tools for control. Let’s assume that the new administration employee is wrong to associate some accounts of the chart of accounts with accounting records and a revenue item that was associated with a certain category of products is associated with another category, how will we realize this error?

Another important factor are the times of the activities, which in this case are certainly longer, and the impossibility of creating automation rules that modern systems provide. To learn more about this topic, read the experience of Matteo Pillon , an expert in management control, on how to manage accounting with an ERP software.

Beyond accounting. Marketing and sales management.

Let’s move for a moment from accounting and think about sales. Very often the company sellers do not use management systems as they do not have applications that support their needs. A seller must be able to track the activities he / she does with a potential client or with the client acquired, must have simple and immediate information to decide the actions to be taken. We talk about users who are often off-site and therefore have to work with mobile devices and in completely different contexts from the user who works comfortably seated in front of the computer in the office.

What we usually see is the “do it yourself” solution, that is: the commercials manage their activities with individual tools (file word, pdf, excel, so many mails etc ..) then they pass the orders to the commercial back office via e-mail. provides to enter the data in the management program. Once again we lose the benefits of automation, manual management processes with a high risk of errors and obviously higher costs for operations .

You do not have an overview of what the company is doing towards a specific customer. Once again we have the different departments that access information that is isolated on different systems.

Marketing does not have complete information to plan targeted campaigns and automatic actions when precise sales-related events occur.

Integrate the management with other vertical software

Many companies try to integrate management software with customer relationship management systems (CRMs). Integrating completely heterogeneous systems involves considerable costs and concrete management difficulties. These strategies pose again the problem of automation .

How can I program automatic checks throughout the supply chain if a data is processed by different programs at different times? What happens when the software manufacturer performs updates? Will the synchronization system continue to work or do I have to take action? If the seller opens the card of the customer in his CRM will be able to see in real time the administrative data, ie the payments situation, the purchase history, open orders etc.? And if the commercial inserts a note on the CRM related to the agreements made for payment, can the administration view this information?

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How to open a company: guide in pills

You are aspiring entrepreneurs but do not know what kind of company to open and how to set it up? Do you want to know immediately all the responsibilities for the entrepreneur and for the members? In this article we try to provide the answers for those who choose to open an independent business, analyzing and comparing partnerships of people and capital.

What kind of company?

The company is an economic organization that produces goods or provides services. Depending on the sector of activity in which it operates, our economic system places them in three macro-sectors :

  • Primary (agriculture, forests, animal husbandry and fishing);
  • Secondary (manufacturing, mining, production, construction);
  • Tertiary (service activities, including the PA).

=> Discover rules and incentives for starting a business

Companies are also distinguished on the basis of profit. In this area there are companies working to achieve a profit to be allocated to the owner or partners of the company, and the companies ‘ non-profit ‘, non-profit organization such as non-profit , non-profit organizations of social utility, which operated as a manager, like any private company, they operate with the constraint of covering costs but do not distribute profits to the owners (to set them up, they need a “found raising”, search for donors and sponsors consistent with their mission).

=> Find out how to choose the right activity

What legal form?

The companies are also distinguished in partnerships (Snc and Sas) and joint-stock companies (Srl and SpA).

In order to set up an SNC (a collective company), a written document must be registered with the Business Office, which must include: general information on the shareholders, company name, indication of the shareholders who are responsible for representing the company, corporate purpose, indication of the registered office, contributions by each member, services to which all the members are obliged, duration of the company and methods for the distribution of profits and losses.
The partners they are unlimitedly and jointly responsible for social obligations. Amounts can not be distributed among the members if they are not actually obtained profits and, if a loss of the share capital occurs, it is not possible to distribute profits until the share capital itself has been reinstated or reduced accordingly.

=> Business creation: instructions for use

The SaS (limited partnership) has two categories of members: general partners and limited partners. The difference between the two types consists of the greater obligations and responsibilities provided for the general partners with respect to the limited partners. The limited partners, in fact, respond for solidarity obligations limited to the quota conferred while the general partners are unlimitedly responsible. The greater responsibility is compensated by the fact that only the latter can represent society and make their names appear in the company name.

=> Establishment of a Srl

La Srl (limited liability company) is a limited company and responds to social obligations with its assets. The minimum capital is 10,000 euros, however, special limited liability companies with a share capital of one euro are under development. If the company formed a unilateral act, it becomes “unipersonal limited liability”. The characteristic of this company is the presentation of a single member.

=> How to open a simplified Srl

The SpA(Società per Azioni) is a capital company with patrimonial autonomy. The company repays its debts with assets. The member’s quality is obtained through the purchase of shares. The shareholders, however, do not administer the company nor can they take direct knowledge of the documentation relating to the administration activity. When the capital is reduced by more than a third as a result of losses, the directors must convene the meeting. If, within the next financial year, the loss is not reduced by at least one third, the shareholders’ meeting or supervisory board approving the financial statements must reduce the capital corresponding to the loss ascertained. If the loss involves the reduction of the capital below the legal minimum, currently equal to 120,000 euros,

As with the company, the corporate law reform offered the possibility of setting up a joint-stock company by a unilateral deed, ie with a single shareholder ( read more ).

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