Manage

Inventory forecasting or estimation can be explained as a financial routine of preempting or forecasting future inventory on a particular timescale. More mundane it is a scientific take on predicting specified future sales regarding a based proposed marketing approach and competitive and uncontrollable sets of forces. 

The future of your retail is predominant on Forecasting inventory and plays a big role in figures of profitability. The type of system you use is supposed to consider sales or purchases encountered in the past month; past season, and the customized duration that depends on future business transactions.

Inventory Planning In Relation To Past Month Sale
When planning the inventory for a coming month using the past month sale, the number of planning days on the inventory is pertinent. (For this scenario, 30 days) in touch with how long you intend the inventory arrangement to be worked on in regards to (for this scenario, past 30 days).

Ascertained to a specific vendor or product, it is feasible to use a brand name based filter. You will be provided with a suggested quantitative by the system you are using when filling in your inventory. 

This will be based on the past month daily average sale. The systems suggested quantity can also be used to calculate the precise delivery time of a product by a vendor.

Inventory Planning In Relation To Past Season Sale

As the one above, you will be provided with the quantities that are suggested by the system. This can help you in the afore planning of holidays like Christmas to come based mostly on how much you sold on the previous Christmas. 

In this case, you will need to have the required days, 60 days that’s for December and January in conjunction with the previous December and January to calculate a perfect inventory prediction.

With that said, looking at your fresh stock and how fast or slow they are moving is also essential. On bigger occasions like Christmas, it is imperative to apply other factors to your inventory planning on fresh stocks will help you in keeping your customers for lack of new stock.

Why Both Beginning And Ending Inventory Cost Calculations Are Important 
Firstly it aids you in monitoring your business’ current trends. For instance, on one side a beginning inventory that is decreased is a nice omen since it might result from that sales growth of a certain period.

While on the other side, it might result from problems in the processes of your inventory management or supply chain.  

For the beginning inventory cost that has increased, it might arise either from a sales’ downward trend or having stock build-up prior to a busy period like prior to holidays. Thus it is crucial to be very accurate draw right conclusions as well as make good decisions while calculating both the beginning and ending inventories.

How to Calculate Ending Inventory
Are you having difficulties on how to calculate ending inventory? Basically ending inventory is calculated by annexing new purchases with the beginning inventory then deducting the sold goods costs. In other simpler words, ending inventory is a product of the available goods that have not been sold at an accounting period end. 

Despite the unit number at the end of an accounting period is not dominant to the inventory outcome; the type of valuation system has an impact on the value of the dollar of ending inventory.

So management has to be very careful on the type of system they use.
In a time of inflationary pressures or rising of prices, FIFO brings out a bigger ending inventory valuation as compared to LIFO. In that regards, specific businesses strategically choose FIFO or LIFO techniques based on the environment the businesses are located at.

Ending Inventory Breakdown
A physical inventory count may lead to additional correct inventory valuation. However, for enormous businesses, that’s unpractical. RFID systems, Inventory management software, as well as other technologies leveraging platforms and connected devices advancements, may ease the challenge of valuation.

Other inclusive problems are:
• Listing down theft inventory levels, general obsolescence, and decreases in market value.
• A popular item of the balance sheet is the Ending inventory that is important for obtaining financing. Creditors and investors closely monitor financial statements that are owned by manufacturing and retail businesses that are inventory rich.
• Correct inventory valuations can have an impact on several popular metrics of financial statements.  

Income statement items are inclusive of gross profit, cost of goods sold as well as net income. Equity, total assets, current assets as well as working capital emanate from a balance sheet.

Every item is crucial for having a business’ performance and financial statements assessed.
Conclusion
Therefore, when it comes to forecasting, several uncertainties are for sure for every organization. To have these uncertainties’’ adverse effects reduced an organization needs to take an iterative approach to determine a projected inventory in the future.

When you have data available, everything is measurable. However, to forecast inventory accurately, you need to be focused on relevant data points. It is important to take a few points when you are forecasting inventory.

BAn untold truth about HRs is that all efforts put in from finding the right candidate, interviewing them, selecting, onboarding and finally handling their separation costs money. Hence, it becomes an additional responsibility of the HR to always go the extra mile to find the right candidate for the company who will be a part of the company for a long run and help the company grow. 

Usually these expenses are centrally handles by the finance department but, with Pocket HRMS, your HR can not only automate the expense management, but also monitor the ROI behind every spending and aim to be more efficient in the spending. A smart HRMS solution like Pocket HRMS gives you the freedom to choose from varied modules to suit your business needs. 

Read also: How cloud payroll software can help your business in times of disaster?

How does an HR software help you automate your expense management?

1. Taxation and Standard Deductions 

With Pocket HRMS, the employees can file their declaration for the year and the algorithm in the system will help the HR calculate the Income Tax and other deductions for the individual. Seeing everything clearly, helps the employee plan his/her taxes in advance and file for returns without any hiccups eliminating any type any human error.

1. Claims Reporting

Either travel expenses or taking the client out for dinner/lunch is an expense that the sales person has to borne to make a potential sales. With the help of a smart HRMS software, you can manage all your claims in one place along with the proper approval system and add that up when the payout is to be made. 

1. Transparency in approvals:

With integrated HRMS software comes a business card for all types of transactions with automated and streamlined transparent expense management system. Now employees can track all their reimbursements processes with ease along with their approvals avoiding any chances of fraud cases between claimers and approvers.

1. Quick operations:

Processing for medical claims is another huge task for the HR wherein they not only have to deal with the employee, but also the TPA of the insurance company. Having one streamlined software makes it easier for all the communication to be logged along with providing transparency to all the parties. Lodging all your claims are now just one click away.

1. Easy ROI reporting:

Many businesses, during their procurement period, find reporting on their Return on Investment (ROI) the most tedious and tough task to perform. Doing it manually, does not only arises errors but also consumes tons of minutes which could rather be focused on other productive activities. Switching your accounts’ department to automated expense management gives you an easier way of reporting within no time. Automating expense management and budgeting with a system can eliminate all errors and increase efficiency.

Epilogue:

Including an HRMS system into your expense management department can be a beneficial act. It is intelligent enough to manage compliances, deductions, taxations and all other expenses automatically without any error. 

Ritik Singh writes about HR (Human Resource) software, cloud and enterprise technology. A dynamic content writer who writes for PocketHRMS, a leading provider of cloud based HR software with inbuilt AI-powered HR chatbot (smHRty) to small and mid-sized businesses across India.

Any company would agree that it’s critical to maintain a harmonious atmosphere in the office for maximum productivity and collaboration between your team members. However, managing and retaining talents of all ages may come off a bit more challenging than you think.

For one, the disparity between age groups of different employees is an interesting subject in today’s diverse workplace. A lot of assumptions and stereotypes have been thrown at either party: Millennials are stubborn and entitled; the older generation is inflexible and old-fashioned. These stereotypes fuel the friction that may sometimes arise in a multigenerational company.

It’s important to understand that each group has unique personalities and work ethics based on the culture and time they grew up in. An effective recruitment agency or HR consultant should look at candidates objectively and evaluate what these prospective hires can bring to the table instead of easily believing pre-conceived notions. It’s refreshing to have different perspectives in the workplace so long as everyone fits in the culture.

While millennials are currently the youngest in the spectrum, they are not new to the working scene. They are not as naughty as others paint them to be, yet they still receive a lot of flak for their ingenious and radical ways in the workplace. The oldest millennials today are aged 37 years old, which may already assume managerial positions in some companies.

This age group is also set to comprise 75% of the workforce by 2025, so learning how to harness their skills is vital to any company. Millennials will indeed continue to revolutionize the workplace in the coming years.

The same courtesy of understanding applies to Gen X and baby boomers as well. They know the industry that should be valued, and younger people should be more open to their traditional yet effective processes. After all, the goal of every company is to make all of their team members feel valued and heard at work, meaning all opinions count and contribute to the betterment of the majority.

Thankfully, there are actionable steps to managing your multigenerational workplace better. Baby Boomers, Gen X, and millennial workers can become each other’s best assets when given a chance. The secret is to unlock their potential and show them that they can teach valuable lessons to each other, both professionally and personally.

Besides that, managers should teach all of their employees to be aware and respectful of each other’s ideas and working styles instead of criticizing or complaining about them. Instill a sense of pride in your team for being part of an age-diverse company, because this will do nothing but bolster their career growth.

It won’t be long until the newly graduated Gen Zers joins the workforce. As early as now, your company should be able to smoothen out any tension and successfully promote a safe and fair working environment for everyone involved. If you want to learn more about how millennials and older generations can successfully collaborate in the workplace, continue reading the infographic below:

At M. Grisafe Architects, we’re passionate about architecture. It’s what we do. We’ve been in business as a boutique architecture firm in Long Beach since 2005, and while we obviously love the challenges of designing spaces that inspire our clients and improve their home or work lives, it’s our love for people that truly drives us.

If you were to ask any of us how our firm has grown and remained successful over the years, we would probably all have a similar answer: Because of the people involved, and that includes each other as colleagues as well as our clients. Our approach with clients, which we sum up with

three words—advise, advocate, and collaborate—not only results in finished projects that fully address clients’ needs and solve their problems, but that also drives our inspiration and creativity as a firm.

When the Client Wins, We Win Too

We’ve learned over the years that our clients are at the heart of what we do. They’re the most important part of our business. We’ve also learned that when we go above and beyond for our clients—when we really dazzle them—our job is more fun! It’s so rewarding for us to know that a client is thrilled with their new space, and that goal keeps us excited to come to work every day.

When we begin a project, our very first step is to get to know the client we’re working for. Whether we’re working on a residence or a commercial space, meeting the people who will be using the space and understanding them on a deeper level is essential for us.

And we understand that not all architects agree

! Plenty of architects enjoy designing spec homes (which are designed and built without a specific buyer in mind), and plenty of architects enjoy doing large-scale commercial work in which there may be multiple intermediaries involved and not much direct interaction with the person or people who end up using the space on a daily basis. Those types of projects simply aren’t our preference because we believe we achieve better end results when we work with our clients rather than for them.

Relational, Not Transactional

Everyone has had the experience of feeling like “just a number” or “just a consumer” when interacting with a business, and it doesn’t feel good. It doesn’t matter where it happens—getting a fast-food burger or navigating a car insurance claim—if a company is treating your interaction like a transaction to “get through,” you’re probably going to think twice about spending your money with that company in the future.

Because of the personal and permanent nature of what we do, that attitude is unacceptable for us. For one thing, it creates unhappiness all around. If our clients were repeatedly unsatisfied, we at the firm would all be unsatisfied, too. People generally don’t enjoy working for companies that don’t treat their clients well.

But more importantly, our clients have to live and/or work in the space we create. We might be able to get to “good enough” without inviting them into the process, but to get to their hearts and leave them with a space that inspires them for years to come? That requires building a strong relationship with them. It’s not the easy way, but it’s far more rewarding in the end, and it makes clients more likely to work with us again and refer us to their friends and families!

Advise, Advocate, Collaborate

Every business is different, but there’s always a way to invest in building relationships with clients. It takes time and energy, but the payoff is well worth it. For us as a Long Beach architecture firm, we have developed a three-pronged approach, and we’ve found it to be a good balance between establishing our expertise, which makes clients feel confident in choosing us for their project, and treating clients like valued members of the team who can provide input and participate in the process:

• Advise: This is essential to building confidence and trust. We provide information and transparency right from the beginning, and we continue to do so throughout each phase of our work together. We believe well-informed clients ultimately make the best decisions, so we make communication a top priority from day one.

• Advocate: As we gather information and fully understand what the client wants and needs in their new space, we work towards it wholeheartedly. We strive to reach the finish line with as few complications as possible and while meeting every client need. If problems or complications arise (which is not uncommon in our line of work, especially dealing with permits and codes), we jump in and solve them. It’s our job to navigate those stressors, not the client’s.

• Collaborate: Just like we work with our clients throughout the scope of a project, we also have to work with agencies, city governments, and other various stakeholders to keep a project on time and on budget.

This may all sound novel or even crazy. We know that our exact approach may not be appropriate for every business—after all, different types of businesses require different levels of closeness with clients. What we are saying is that we create win-win results when we treat clients like team members, and we believe that most businesses would benefit from finding ways to do so too.

Mark Grisafe

Mark Grisafe is the owner of M. Grisafe Architects, a boutique architecture firm in Long Beach, CA that provides services for both residential and commercial clients in the area.

mgrisafearchitect.com/