Understanding the Need for Accounting Software in Wholesale Distribution
Let’s go over some facts about wholesale distribution as a business. Did you know that this industry will rake in a whopping $8 trillion in revenue every year? Another report shows that about one-third of total wholesale trade in the US in 2020 came from eCommerce. This industry is booming; however, you won’t be able to excel in it without using accounting software for wholesale business. That’s because new and exciting trends are emerging in this niche. Besides eCommerce, data analytics, mobile technology, robot devices & automation, personalized user experiences, and sustainability are some of the new emerging trends in this niche. So, how does wholesale accounting software help you in this regard? Well, let’s give you a few essential reasons why you need accounting tools in wholesale distribution:
- Better Financial Processes: First, this software can automate and streamline very complex financial procedures. You won’t have to enter data manually or calculate things on your own. It will make your financial department more productive.
- Smarter Inventory Management: Next, you should look into inventory management. Managing a large inventory of products will be difficult when dealing with it manually. Accounting software for wholesale distributors will track stock levels, generate turnover reports, and even take care of different warehouses for you.
- Sales Order Management: You can also receive and process higher volumes or sales orders with accounting software for wholesale distribution. That’s how you can track orders and manage them efficiently. This software comes in handy when you want to track orders, generate invoices, and handle discounts to ensure speedy customer satisfaction.
- Purchase Order Management: A wholesale distribution company also purchases inventory from key suppliers to fulfill customer orders. In this case, they can use an accounting tool that provides them with robust purchase order management capabilities. These features will keep an eye on all delivery schedules.
- Financial Reporting & Analysis: Next, an accounting tool for wholesale distribution is a great way to do your finances right. You get robust reporting & analysis tools to craft financial statements in real-time without grave errors. That’s how you can get careful insights into the financial health of your wholesale business.
- Customer Relationship Management: Maintaining healthy relationships with customers is vital for success! That’s why your distribution & wholesale software will offer you integrated features of CRM so you can track customer interactions and monitor their buying patterns. It becomes a lot easier to build strong relationships with customers if you’re using wholesale tools.
- Compliance & Auditing: In wholesale distribution, you should also comply with many regulatory requirements while undergoing regular audits. Accounting software can help you ensure proper compliance by maintaining error-free records of your finances. This software will do your taxes! So, you won’t be getting any penalties or other legal issues.
10 Key Features to Look for in Accounting Software for Wholesale Distribution
Now that we’ve explained why investing in a wholesale distribution accounting tool is so important, we’ll explore the key features to be looked for in this software. Did you know that more than 50% of the total revenue generated by food & drink wholesale distributors will own its origins to small retailers? In other words, you should consider a tool based on who the retailer is! Choose accounting software for your wholesale distribution business based on your unique needs. But we’ll discuss it in detail later. For now, let’s explore the general features of distribution and wholesale accounting software:
1. Inventory Management
First, let’s talk about inventory management. You don’t want to run out of bestsellers, don’t you? That’s why you must invest in a good solution that offers wholesale distribution, robust inventory management & tracking features. For instance, your wholesale accounting tool will offer features like real-time product tracking, managing different warehouses, updating inventory automatically, and barcode scanning support.
So, you can maintain optimal inventory levels this way. A wholesale distribution accounting solution will reduce stockouts and improve order fulfillment. That’s why you should always check out these inventory management features of this software when investing in tech tools for wholesale distribution.
2. Sales Order Management
Secondly, you should choose a software package that comes with robust sales order management, such as order creation/tracking, automated invoicing, inventory system integration, and handling complex pricing structures. Moreover, this software solution will take care of discounts and promotions as well to ensure that they are only offered when appropriate.
In short, accounting software for distribution businesses should always come with an intuitive interface & platform for sales report generation. You can streamline the sales process with it as well.
3. Purchase Order Management
When it comes to purchase order management, you can rely on wholesale distribution ERP software for the timely procurement of your inventory. This essential feature will help you easily create and then track all major/minor purchase orders. You can automate workflow approvals and keep an eye on the timelines for delivery.
This software lets you craft strong, long-lasting relationships with vendors as well. The key is to integrate this software with your wholesale business inventory system. Then, you’ll get real-time updates on your purchase order statuses with procurement process optimization.
4. Financial Management
However, the core functionality of accounting software lies in its financial management expertise. You’ll get features like ledger management, bank reconciliation, expense tracking, financial reporting, etc., with a robust wholesale distribution mechanism.
That’s why you should always choose an accounting solution that supports multi-currency transactions, tax calculations, accounting standards compliance, and other important measures to keep your wholesale distribution & procurement business financially afloat.
5. Customer Relationship Management
Similarly, some of the best wholesale accounting software programs come equipped with CRM features so you can easily manage customer information. This software will let you track customer interactions & analyze customer buying patterns, too. If you want to build strong relationships with your customers, it’s advisable to use warehouse distribution tech tools. They will help you identify cross-selling and upselling opportunities as well.
The best way to craft successful marketing campaigns is to sprinkle a little bit of personalization over them. that’s something you can easily do with a warehouse distribution software solution.
6. Reporting & Analytics
Warehouse distribution tools also offer comprehensive reporting & analytical capabilities. That’s how you can monitor the financial health of your wholesale distribution business. Therefore, you need to find a software solution – designed for wholesale distribution accounting – that can give you customizable & comprehensible financial reports.
You’ll get real-time dashboards and advanced analytics tools as well. That’s how you’ll get key insights into sales performance, inventory turnover, cash flow, etc. – ultimately, the entire profitability strain will become visible to you.
7. Integration & Scalability
It’s equally important to choose a software program that integrates with other business systems as well. For instance, you should invest in a wholesale distribution tech tool for accounting that comes with fair eCommerce management platforms.
That’s how you can ensure smooth data flow between different departments in your organization. You’ll streamline business procedures with this tool as well.
Always choose software that can grow alongside your business.
8. User-Friendly Interface with Easy Accessibility
An accounting software designed for your wholesale business should be user-friendly as well. You must ensure that even less tech-savvy workers can use this software as well. It needs to have an intuitive and user-friendly interface. So, always look for a software solution that offers accessibility so you can assess financial data easily and perform tasks on the go.
This feature will work wonders for any managers or sales reps who need real-time access to this info in the field. You’ll essentially be making their lives easier with this software.
9. Security & Data Protection
Don’t forget about keeping your data secure against hacking attempts and breaches. That’s because the global retail and wholesale industry was targeted by over 10% of cybersecurity attacks; that’s why you’ll have to choose a robust solution designed for wholesale distribution that offers vital security features like user access controls, data encryption, regular backups, data protection regulation compliance, etc.
10. Customer Support and Training
Lastly, you should keep in mind that robust distribution business management & accounting software is crucial when it comes to customer support/training. Many vendors offer wholesale accounting solutions along with comprehensive onboarding and training resources.
That’s how you can have access to the required assistance and guidance throughout the implementation process. It makes the software user-friendly and way easier to navigate.
5 Best Accounting Software Options for Wholesale Distribution
When it comes to choosing the right distribution business management & accounting software, you’ll have to compare different options to choose the one that works for you. Don’t worry; we have different options for you to choose from, such as the following top ERM software tools:
- NetSuite: First comes NetSuite, a well-known cloud-based ERP that offers wide-ranging features for a wholesale distribution business. You can manage your inventory, sales/purchase orders, and financial matters with this simple software.
- QuickBooks: Next, we have QuickBooks, accounting software for whole distribution companies; it’s the perfect option for you. Besides doing all the things NetSuite can do for you, it offers user-friendly interfaces as well. Moreover, it’s pretty easy to use. That’s why a medium-sized & expanding wholesale distributor can use it easily.
- Microsoft Dynamics: A great solution for wholesale distribution companies is simply to utilize the fantastic Microsoft Dynamics 365, known for inventory tracking and financial management capabilities. This tool will integrate with Microsoft software like Office 365 and Power BI. That’s how you can see better collaboration and reporting in your wholesale business.
- Sage Intacct: Sage is another amazing cloud-based software solution that offers advanced fiscal management features. You can use it for general ledger management and financial reporting. It also works well when you require multi-entity and multi-currency support. That’s why you must consider Sage as a great wholesale distribution accounting tool.
- Zoho Books: Lastly, we should mention Zoho as another amazing software solution catering to small businesses. You can easily integrate this tool with other Zoho products (CRM and tools for project management, among others).
While these are some of the top accounting software options for wholesale distribution, you’ll evaluate your specific business needs and requirements before making a decision. It’s crucial to take into account a lot of different factors, such as the size of your business, the complexity of operations, scalability, budget, etc., before making a decision. Additionally, take advantage of free trials and demos offered by software vendors to test the functionality of the software for your wholesale distribution business.
How to Implement Accounting Software in Your Wholesale Distribution Business? A 9-Step Program
Now, we’ll discuss the best way to make the best distribution accounting software option part of your business. You must follow these nine steps closely and learn how to properly implement this software. It is equally important to be careful when implementing this software. So, here are the simple yet efficient steps if you wish to take business accounting as a wholesale distributor to new heights:
1. Identify Your Needs
It always starts with the need for identification. You have to assess your business requirements and determine your most pressing business issues/challenges. What sort of problems do you want accounting software to address? Do you need help with order processing, financial reporting, customer care, inventory, etc.? Once you have assessed your needs, we can move on to the next step of this journey.
For now, you should consider different factors like business size, the complexity of operations, different requirements specific to your industry, etc., as well.
2. Choose the Right Software
Next, you will go through the tips mentioned in the beginning to determine which software is perfect for you. Based on your unique business needs, you can search and evaluate different accounting options. It is important to look into different factors, such as the cost of acquiring that software, ease of use, and overall functionality.
Look into demos and trials to test the functionality of these software options. Only then can you end up aligning them with your unique software needs? Don’t forget to read reviews and get recommendations from industry experts.
3. Training your Team
Thirdly, you should provide ample training to your team so they can use this new accounting software. It is important to give them comprehensive training sessions. All relevant staff members – accountants or sales reps and inventory managers or customer service personnel – should receive this training.
You can also use online tutorials, user manuals, workshops, and other software solutions to provide adequate & hands-on training to your employees.
4. Data Migration & System Setup
Then, you can migrate your existing financial/inventory data to the accounting software for wholesale distribution. Here, you will make sure that this data is transferred error-free to the new software. You’ll also map the corresponding fields in the new system.
Next, you should set up the accounting software by configuring settings, tax rates, sales/purchase orders, chart of accounts, and other templates for proper configuration.
5. Existing Software Integration
Yes, this one can be a problem when handled improperly! You should make sure that this new software is integrating properly with existing systems. It will break down communication silos and allow for very smooth data flow across different departments.
You can also eliminate duplicate data entry and provide a holistic view of your business operations. Also, you should work with a software vendor/consultant to ensure proper integration.
6. Testing & Quality Assurance
It’s equally important to fully implement the accounting software by conducting QA tests. These tests will make sure that this software is fully functional and integrates well with other systems. That’s how a robust distribution & wholesale software solution will work in your organization.
In short, you’ll test different scenarios, such as creating sales orders, processing invoices, generating no-error financial reports, and reconciling accounts.
7. Phased Implementation
You may call this the “go-live phase” as well. At this stage, based on how complex your business is, you should go by a phased implementation approach. In this approach, you’ll roll out the software gradually by starting with specific modules or departments.
However, other wholesale distributors go live 100% at the start after software implementation across all departments simultaneously. You should ensure that you have ample support/resources available when the go-live phase is upon you!
8. Provide Regular Maintenance
You should also make sure that you have a maintenance plan in place to keep the software up to date. You can do that by regularly installing updates and patches provided by the software vendor.
It’s a great way to access new features, bug fixes, and security enhancements. Moreover, you should perform periodic data backups and schedule system maintenance to optimize performance. Then, you can see amazing benefits in your software implementation strategy.
9. User Support and Troubleshooting
In the end, you should provide ample user support to your workers. If they have any questions or issues, you should address them right away to keep your business vessel afloat.
Designate an internal point of contact or a help desk for user assistance. Make sure that whenever any problem related to this accounting software in the distribution industry arises, your employees have access to tech wizards or software gurus for proper assistance.
Conclusion
So, what did we learn from this article? We learned why accounting software for wholesale distribution has become a necessity for modern-day companies. Hopefully, you now understand that this software tool features many amazing features that help you:
- Streamline financial management
- Facilitate better decision-making
- Enhance inventory control
- Improve order processing
That’s why you select only the best wholesale accounting software after training your trainer, maintaining the system, and – most importantly – measuring the ROI of your accounting software. That’s how you’ll be able to assess the efficiency of your accounting tool and realize if it’s working for you.
Don’t wait to catch up – it’s time to step up and take charge. Become a leader in this fast-paced niche. Go ahead and schedule a free discovery call with the experts at Alchemy 365. Let’s usher in a brand-new era of wholesale distribution in your business with the help of MS Dynamics 365. Give us a call so we can discuss how to be your trusted ERP partner on this ride!
