Every company is established with one goal in mind – attainting profits. Different management strategies and techniques are employed for ensuring high profits on charts at the end of a financial
year. Some tried and tested methods are applied, some take the unexplored route and try out something new and some use technology to guide them through the way.
One of the most common approaches is to integrate SAP Business One implementation services for SME with project management and accounting systems. When projects are handled well with one eye constantly on the finances, profitability will be a tangible outcome. Handling finances has to be one of the most overwhelming and pivotal aspects that companies have to face. It includes different stages – Estimating costs, controlling the actual expenditure, tending to unexpected/surprise expenses and finishing the project within the assigned funds. When all these take place under a controlled environment and excellent management, one can expect profits. But how can one take the help of SAP project management system for the same? Read on to find out.
According to SAP B1 partners, building a strong foundation helps greatly. So before you start evaluating any Enterprise Resource Planning (ERP) and project management system, keep a few things handy:
– Tool to measure time and expenses being spent on the project
– A method to track tasks and milestones
– Accurate allocation of costs and revenues
Once you are ready with them, you can utilize SAP project management system to maximize profitability in the following ways:
a) It lets you estimate costs accurately
SAP project management system allows you to analyze costs of all the previous projects. Studying them will give you a fair idea on what to expect for the current and potential projects financially. With an accumulated data and exhaustive evaluation, companies can reach an estimate for the current project. By setting a corresponding cost and financial chart, the required profit margin can be achieved.
b) It allows you to use data to improve profits
Profits don’t just rely on the investment of money and ROI. There will be other determining factors responsible. The scope and size of the projects defines some crucial elements, influence how they respond to various conditions and how they contribute to profitability. These data banks provide great insight into opportunities for project as well as business on a whole.
c) It promotes efficient management of resources
When resources are misused, it directly affects bank accounts of the company. Every project involves numerous raw material, people, vendors and tools/equipment which need to be balanced properly amidst everyone. SAP Business One implementation services for SME along with project management module allow the users to manage and distribute the resources well, allocate time properly and maximize the potential of employees working on any project. When these come together, tracking of project can be done satisfactorily and profitability can be gauged through the course of the project.
d) Analyze reports
An integrated ERP and project management system generate comprehensive, easy-to-understand, graphical or data based reports that will help one understand the financial details of all projects in real time. These reports help users take informed decisions, recognize problematic issues and design strategies that give high returns. As reports are generated in real-time, problems can be eliminated in real-time, before they get a chance to pose serious threats on the completion of projects.
SAP B1 partners agree that SAP project management allows you to monitor profitability over a period of time. Computing profits isn’t a one-time calculation, rather the figures add up over time. It is essential to recognize revenues at different stages so that none of the involved costs are overlooked. One slight mistake could literally cost lots of money, bringing the margins of profits down. Let your ERP and SAP project management system take care of some aspects and make work easier for you. You can focus on making higher profits and growing your company.