Why Inventory Management Software is required for Business?

Inventory management software refer to the goods and materials include that a business holds for the ultimate purpose of sales,  resale, purchase  or repair. Inventory management system is a science primarily about specifying the size and percentage of stocked wares. It's required at different positions within a facility to provide the well-defined & planned guide for produce and stock of materials. It involves the retailer finding to acquire and preserve a proper business classification while ordered, shipped, handed and related costs are kept in check. It can also included a system & procedures that knowing inventory requirements, set goals/targets, endow replenishment techniques, actual report & advanced inventory situation and handle every functions related to the tracking and management of goods.

Reasons For Keeping Stock in Inventory Management System:

·        Time: The time fall behind the present in the provide chain from providers to user at all stage, requires so you maintain certain amounts of inventory management to use in this lead time

·        Uncertainty: All Inventory is maintain as buffers to meet uncertainties in requirement, supply and movements of goods

·        Appreciation in Value: In few situations, few stock gains the required cost when it's kept for few time to allow it reach the desired standard for consumption or for manufacture

These are the example of in inventory management system:

·        Raw Materials: Materials & components programmed for use in making a production

·        Finishing Goods: Goods ready for sale to clients

Work in process: Materials and components so that have begun to their change to finished goods

ERP Software and Their Functions

Enterprise resource planning (ERP) is business process management software that allows a company  to use a channel of integrated applications. ERP manage the business and automate many back office works related to services , technology and human resources. ERP software integrates all Business operation at one place, including product planning, cost, organizing, manufacturing, development, selling and marketing, shipping payment and inventory management under one pipeline. ERP is provide an detailed view of main business processes, often in real time, using generic databases maintain by a database management system. ERP channel track business instrument cash, raw materials, production efficiency and the situation of business commitments orders, purchase orders and payroll.

Enterprise resource planning systems  typically include the following characteristics:

            ·        A generic database that supports all applications

            ·        A relevant look and feel across the modules

            ·        Installation of the channel with elaborate application/data integration by the Information Technology (IT) sector, provides the implementation is not done in low steps

An ERP system covers the following general functional areas. In many ERP systems these are called and classified together as ERP module

·        Financial Accounting: General ledger, fixed asset,  cash management, financial consolidation

·        Management Accounting: Budget, cost, activity based cost and cost management

·        Human Resources Process: Recruiting, training, payroll and benefits

·        Project Management: Project planning, resource planning, billing, time and expense, performance units, activity management

·        Data Services: different interface customers, suppliers or employees

Customer Relationship Management: Sales & Marketing, services, client or customer contact, call canter support. CRM is not always considered part of ERP but rather business system

How Payroll Management Software reduced the cost of Manpower?

In this age of advanced technology many small businesses have opened day to day basis. Business owner well aware with technology, they know how to use this technology effectively to maximize the growth of the business. They also know that using this technology they can also reduced their manpower cost through software solutions. In this phase we start with payroll management software. But firstly we have to know what is Payroll Management software  and how its work.

In a company, payroll management software is the sum of all financialsrecord of salaries for an employee, bonuses, wages, net pay and deductions. Payroll Software consists of count of salaries & tax deductions of the employees, organizer the retirement benefits and  immediate delivery to salaries to employees. Payroll software can also be called as an account activities which initiates the salary regime of employees in the organization.

Payroll management software can divided into two parts. i.e. Payroll Accounting and Payroll Administration.

Payroll Accounting- Payroll accounting inset enumerations of employees’ salaries, net pay and tax deductions. Payroll Accounting also initiates the activities such as preparation of tax returns, maintenance the payroll records, etc.

Payroll Administration- Payroll Administration involves the managerial activities such as maintenance employees’ records, referring job laws. Here, the HR comes into picture which maintains the day to day record if employees attendance. In payroll management database of employees is maintained. The employee’s details such as name, employee ID, basic salary, day to day attendance reports etc are recorded. Gross Salary is calculated after adding the allowances and incentives to the basic salary of the employee. Net salary is calculated by deducting the tax and other calculated deductions.

On the behalf of this we can say that using payroll management we can reduced 20% cost of the business.