burning problrm – Bada Business

Top 3 Benefits of Enterprise Resource Planning to Solve Every Organization`s Burning Problems!

In a constantly evolving business world, making an informed decision is a necessity. With the dynamic organizational environment that keeps shifting its pace now and then, it is vital to have updated data. But what is more essential is to have a centralized location of data that is easily accessible.

This is the reason that big to small and medium-sized companies all are now relying on using Enterprise Resource Planning (ERP).
But what exactly is Enterprise Resource Planning?

Enterprise Resource Planning system is a smarter way to integrate your multiple key business processes into a single system. It makes the entire process simple, and more efficient for the current as well as the future scenario.

It integrates a bunch of business applications into one. ERP tools cover expansive and deep operational end-to-end processes such as Finance, HR, manufacturing, distribution, supply chain, and services.
It acts as a catalyst for business innovation and along with reducing the IT cost, it also provides an excellent platform for business efficiency. ERP systems enable greater insight and increase visibility into the supply chain operation in an organization.

Benefits of Enterprise Resource Planning

ERP systems are an asset for many small to medium companies. If you have multiple applications for various departments, an ERP system can unify them all.
It can make your business run smoothly by protecting your information, producing easy-to-understand reports, and automating processes. Here are some of the ERP benefits that you will get after implementing this software:

1). Reduce IT Costs

An Enterprise resource planning system is the best way to reduce IT expenses due to dedicated staff, support teams, infrastructure, and licenses. An ERP system is often a large investment, yet customizing the system according to your requirements, can reduce the cost.

2). 360 Degrees Visibility

Just like a bird-view, an ERP software gives complete access to everything important associated with your business. It allows the access of all the data from individual departments to you as well as the senior management.

3). Single Reporting & Planning System

This is one of the major reasons behind the popularity of ERP systems. Apart from providing better insights, it also offers better visibility of each department. If you want a single and unified system of reporting, nothing can beat an ERP system.

An enterprise resource planning can help you generate useful reports and analytics for every process in the organization. From customer reports to income, and cash flow statements, the ERP system can generate quick reports without IT intervention.

Are you an entrepreneur who is looking to have integrated business operations or a solopreneur who is juggling multiple software to keep your business run smoothly? Then get all your problems resolved with our Enterprise Resource Planning problem-solving course.

Click here to know more: https://www.badabusiness.com/psc?ref_code=ArticlesLeads

8 Types of Working Capital & Everything you should know about them!

Wouldn`t it be easier to start and manage your business as an entrepreneur or a solopreneur had there been a problem-solving course on working capital management?

Wouldn`t it be wonderful to have a course that enables you to understand the concept of Working Capital Management in an easy-to-understand language? Fortunately, you can understand the basics of Working Capital Management and a lot more in this article.

What is Working Capital?

Considered as one of the most crucial components, working capital is vital for a smooth business operation. In simple words, it is the difference between the company`s current assets (cash, inventory, marketable securities, and receivables) and liabilities (rent, bills, and other expenses).

It represents a company`s operational activities and includes inventory, accounts receivable & payable, cash, and short-term debt.

How is it beneficial for a business?

Working capital is a vital factor for both business owners and financial professionals. An effective financial tool, the working capital gives an exact picture and a fair idea about a business` short-term financial standing. It also ensures the efficient use of all the components of current assets and liabilities to reduce the overall cost.

Types of Working Capital

Depending on the time, there are eight types of working capital in India:

Permanent Working Capital

Also known as fixed working capital, the permanent working capital consists of minimum current assets that are required to run the business operations smoothly. However, the size of the WC depends on production scale and growth.

Variable Working Capital

The amount that is invested in a business venture for a short period is considered as the variable working capital. In India, it is also used as temporary working capital and is used for changes in production and sales activities.

Reserve Margin Working Capital

As the name suggests, this type of WC is reserved by the organizations for unforeseen expenses to sustain during a crisis.

Seasonal Variable Working Capital

During the peak season of a business, a company requires more working capital to meet consumer demands. To fulfill the requirement the business owners opt for additional financial assistance which is known as seasonal working capital in India.

Regular Working Capital

This type of WC is typically required by every organization under normal circumstances to ensure smooth business operations.

Special Variable Working Capital

Special variable WC is the type of fund that is reserved by a business for its unique circumstances like the launch of new products, risk management, marketing campaigns, among others.

Gross Working Capital

This type of fund is invested under a firm`s current assets. Its major components include cash, short-term investments, inventory, marketable securities, and accounts receivables.

Net Working Capital

NWC is an essential type of working capital that represents the amount by which a firm`s current assets surpass its liabilities.

The concept of Working Capital is vast and is extremely vital for a business. Thus, the understanding of this concept requires deeper knowledge from the industry experts who have faced and resolved the challenges with their experience and in-depth understanding of the concept.

Take our Working Capital course that will clear all your doubts and provide solutions to your burning problems. To know more about this course and how it will benefit you, click here: https://www.badabusiness.com/psc?ref_code=ArticlesLeads