WhichAddOn Magazine - Issue 6 (What You Can Do with WAOConnect)

AUTOMATION IN THE CLOUD

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Harlequin School Bags Case Study: Cin7, Magento 2 & Xero

QBO vs Xero: Payments Software Comparison

Sidekick Unlocking Movement

Case Study: Cin7, Shopify, 3PL, Amazon & QBO

Carl Castro Biography

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WHAT’S INSIDE THE CLOUD 04 The WhichAddOn way - WAO WAO Mission, Vision and Values

05 Welcome

Marlon Wambeek

06 WAOConnect - Bringing Your Data Together Product Launching

10 Expanding Into the US Company Update

12 Harlequin School Bags Case Study: Cin7, Magento 2 & Xero

16 The Big 3 - Who Has The Best Inventory Forecasting & Metrics Dashboards?

Software Comparison: Cin7 vs DEAR vs Unleashed

22 Data Entry Automation in 2019

Software Comparison: HubDoc vs Receipt Bank vs AutoEntry

30 QBO vs Xero : Payments Software Comparison

36 Just Vegan Protein Case Study: Cin7 and Shopfiy

39 Carl Anthony Castro Biography

40 Sidekick - Unlocking Movement Case Study: Cin7, Shopify, 3PL, Amazon and QBO

44 Inventory KPI's for Retail/Warehouse Key Topic

50 Tas Rural Supplies

Case Study: DEAR with POS and Xero

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THE WHICHADDON WAY

Word Origin / n._

WhichAddOn = WAO

THE WAO MISSION

\PRONOUNCED “ WOW ”\ Noun

To empower businesses through cloud

Used to express an exclamation of wonder, pleasure or a striking success.

technology to enable connection, comfort and care.

THE WAO VISION To bring the possible to life - one business at a time.

THE WAO WAY / OUR VALUES The WAO Way are the guiding principles that dictate how we behave daily to achieve our mission and vision: to empower businesses through cloud technology - bringing the possible to life - enabling connection, comfort and care.

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• Be loving and kind • Be reliable • Be a good steward • Never stop learning - continue to grow every day.

• Help our local communities • Above all, family and good health comes first.

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W E L C O M E Marlon Wambeek – Co-Founder of WhichAddOn The start to the year as always has taken off at a 100 miles an hour. This year it seems to be even faster.

Blink and you missed January. I’m sure it is the same for everyone else. We have had quite a number of jobs go live, and had the wonderful opportunity to work with some unique businesses. We will be sharing some of those experiences with you.

However, the biggest news of all, is a new product that we are launching. It’s called WAOConnect!

Now you may be wondering what the heck that is, to explain it in one line, its bringing all your data across all your systems into the one place.

Most reporting/dashboarding solutions are quite limited by the connections they have with other software vendors. With our solution, we can connect to any API, and pull out as much information as the API allows. Further to that, we can apply calculations and filters to generate forecasts and scenarios.

It's important to know the background of why we came up with this product. It was more of a need than anything, we constantly had customers complain about not being able to access the right reports, and all the different systems they had connected.

An example of a customer we have, has a wholesale channel (managed by Cin7), accounts in Xero, e-commerce (Shopify), plus social media, adword campaigns, etc. Trying to cross reference and manage all these different platforms is nothing short of a nightmare. Unless you have an IQ on par with Einstein when you move from one system to another, there is always a disconnect, and it is cumbersome to push all that data into excel, then collate it and finally once this is all done, the time to do it means the data is outdated and often redundant. WAO Connect changes this and allows for data to be refreshed frequently from multiples sources once the dashboards are setup.

Anyway I won’t go on about WAO Connect anymore (I’m sure you can tell I am very excited), there are some cool articles that go into much more detail, and I trust you will enjoy it.

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PRODUCT LAUNCHING

WHAT YOU CAN DO WITH WAO CONNECT

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When it comes to data there is no denying the importance that it holds in advertising, marketing and business. Whichever industry you work in, or whatever your interests, you will almost certainly have come across a story about how “data” is changing the face of our world. It might be part of a study helping to cure a disease, boost a company’s revenue, make a building more efficient and so much more.

In general, data is simply another word for information. The concept of data has been around since the beginning of time.

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Every company run their business based on data. In computing and business, data is a corporate asset that needs to be protected and the ability to make data driven decisions couldn’t be more important today as businesses makes thousands of decisions daily.

Most are routine but many depends on data. We all know that we can make better business decisions if we have more information.

However, data is just raw information, you need to migrate that data though visualization, knowledge and wisdom to really have it be a critical part of any organization.

We give you the ability to set-up a centralized reporting system within your business that you can access at any point. That way, any decision you make, you at least have the facts, not assumptions, not gut feelings, to back it up.

Allows you to look into real-time business data with the ability to connect through various accounting systems (QBO, Xero, Cin7 and etc.), CRM’s (Salesforce, Infusionsoft and etc.), Social Media (Facebook, Twitter, Instagram and etc.) and so much more. Imagine having all your data in one place!

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We provide you with customisable data reports for better data visualisation. WAOConnect does this by turning raw numbers into graphs, maps and other forms of visualization that reveal trends, provide analysis and predict outcomes.

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PRODUCT LAUNCHING

Real-time data updates which automatically and securely connects to all your systems and data sources.

With WAO Connect We Bring The Possible to Life!

Provides you with better data accessibility. Being a cloud based platform, you can access your reports from anywhere and anytime, from your mobile phone, tablets or desktop computer.

Interact directly with your data and instantly spot trends and ďŹ gure out how your business is performing.

Compare data from this month to last month or the same period last year.

Build Amazing Reports.

Consolidate Your Data.

Real Time Information.

Make Informed Decisions.

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Gives you the ability to expertly track your metrics and improve proďŹ ts. It can be used as a tool for measuring progress, monitoring growth, tracking problems, evaluating performances and ďŹ nding solutions. And by implementing an eective reporting and analytics system, your business can increase communication, productivity, accuracy and timeliness.

This will then aid in creating a sustainable environment where management can make thoughtful and informed decisions to grow the business.

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EXPANDING INTO THE US The US market has always been the pinnacle for any business to try to master and work in.

They lead innovation, and are the early adopters in almost all technologies, in almost all areas they are the market leaders. We have had the opportunity to work on quite a few projects in the US, and it has been a great experience.

We have learned a lot, especially in customer service, and how to deliver a better experience.

However, we have never made a deliberate move to work in the US, or made hard decisions to make it happen. Until now!

This was for a number of reasons, the main reason is that the US market in this instance were not early adopters of Cloud accounting and our specialized niche, cloud inventory, manufacturing, and metrics.

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TABLE OF CONTENTS

This is due to a number of factors, such as security and the fear of having data stolen or worse yet lost. Second, the biggest provider of accounting software to the SMB market QuickBooks was a little slow in their move online, and as such slowed the entire process.

Finally, we found US accountants to be quite conservative and very focused on statutory accounting, rather accountants in Australia and the UK are focused on providing a much wider range of services, including cloud advisory services.

MOST IMPORTANT THINGS! For us, the most important thing is being able to provide the type of service and experience the US markets expects. In Australia customers and people have a slightly different expectation vs US based clients. We found US customer service is at another level. So we spent most of last year creating a team that could cater to the US market and we tested it out in the Australian market, and it turned out to be a resounding success!

We are as always committed to continuously improving our internal processes and systems, and providing resources for clients and potential clients about the cloud inventory space. With our move to the US, we will also be providing a new product offering called WAO Connect.

WAOConnect is our propriety solution that connects multiple solutions into the one reporting app, being able to pull data from your financial system, inventory, POS, CRM, e-commerce, social media and many more. So that you can see at your fingertips the information you require to make decisions in realtime.

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Introduction Harlequin School Bags is Australia’s favourite school bag company supplying thousands of schools and millions of children throughout the world with their innovatively designed school bags and accessories.

Source: https://www.schoolbags.com.au/about-our-company.html Harlequin came to us in early 2018 because they were being asked to move to Xero by their accountant, but they knew Xero itself couldn’t handle the inventory management requirements of their business.

Initially hesitant to the idea - as their business had been running smoothly and efficiently on MYOB for many, many years - they eventually decided that moving to a fully integrated cloud inventory system that connected to their website and their new accounting system, Xero, was the way to go.

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CASE STUDY

Solution Cin7 integrates with Xero and Magento 2. This ticked two big “musts” for the Harlequin team and thankfully, Cin7 could also provide the Stock on Hand and Availability report with ETD dates that informs the team of their expected stock levels in the future based on orders already committed to.

Cin7 was also able to provide real-time visibility into the stock on hand, gross profit margins including landed costs and samples management with ease. Slight customisations unique to the Harlequin Cin7 file was a big plus.

Problem Harlequin’s main problem in finding the right inventory management solution to work with Xero actually stemmed from their chosen website platform, Magento 2.

Unfortunately, when it comes to Xero apps that manage inventory, not many software connect successfully with Magento version 2. The only software solution that connects to Magento version 2 directly - without a third party in between - is Cin7.

The other challenge we needed to solve for Harlequin was how to manage their warranties.

Harlequin School Bags prides itself on exceptional quality and commitment to their customer,

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and that's why they offer up to an unprecedented Lifetime Manufacturer's Warranty on all their school products. This means they need to keep the details of outstanding warranties from their old system, bring them into the new system and have an easy way to track warranties into the future, including providing free replacements.

Another request from the Harlequin team was the ability to easily review the expected stock on hand availability throughout the year at a glance. Incoming stock and committed outgoing stock needed to be easily understood at a glance based on the relevant ETD dates for incoming purchases or outgoing sales orders.

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Final Thoughts As I am writing this, there are still two areas of improvement that Cin7 needs to address for clients like Harlequin. The first is the Xero integration and the second is the user permissions. Cin7 released their updated Xero integration in January 2019 called Xero v2. This integration now includes the payment data being pulled up from Xero, however, it requires clients to disconnect the old Xero integration and activate v2. If Cin7 users aren’t aware of this, they will still be missing out on this feature.

The other area of improvement for Cin7 is user permissions. It’s only minor really when you see what Cin7 solved for this company, however, being able to have even more flexibility into what users can and can’t do at a deeper workflow level - instead of just a module level - would be a great improvement.

Harlequin came to us almost about to purchase Unleashed Inventory with Xero. Unfortunately, Unleashed didn’t have native integration with Magento 2, it didn’t have an easy way to manage samples and warranties and it didn’t have a one-click report showing the Stock on Hand forecast by month for the rest of the year's orders.

Unleashed is a great fit for many businesses, however, in this case, Cin7 came up trumps and I’m grateful we had a chance to help Harlequin see what’s possible and successfully implement Cin7 with Xero to bring their dream system to life.

If your business (or your clients) need help finding and/or successfully implementing the right addons for a product-selling business, the expert WhichAddOn team are here to help. First step is to book in a free Discovery Call with one of our Solution Engineers here.

SOFTWARE COMPARISON

THE BIG 3 Who has the best Inventory Forecasting & Metrics Dashboards?

“ One of the great responsibilities that I have is to manage my assets wisely so that they create value. ” - A lice Walto n. -

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Many business owners spend hours making inventory decisions such as when to order inventory and at what quantities. In order to arrive at the right decision, accurate data, estimates and even computations are necessary. Luckily, technology has been improving at such a rapid rate and the development of inventory management apps such as Cin7, Dear Inventory, Unleashed etc. which automatically sync and provide the required data has made our lives so much easier.

But with many inventory management apps in the market, you may need to make sure that your software of choice not only stores inventory data, but also provides you with relevant inventory forecasting and metrics information to help you make informed decisions.

With inventory forecasting assistance such as data, trends, and so on coming from these apps, you are able to estimate the next period sales, inventories and other cost involved such as shipping cost. This helps avoid unexpected losses such as missing a sale due to shortage and expiry loss due to overstocking.

Similarly, good software should provide inventory metrics or key performance indicators (KPI) showing how your inventory is performing. Inventory accuracy, inventory turnover, customer loyalty and retention, sales revenue, sales margin, and operation productivity are just some of the important metrics that show and measure performance and with them, you will be able to make decisions toward improvement.

For example, inventory turnover shows how long you are taking to sell your products. With that data, you will now be able to determine if you would need to find more or faster ways to sell your products or would need to stock more at certain times.

So, being an inventory specialist and an app advisor, I was wanting to have full understanding of what could go wrong without inventory forecasting and inventory metrics information and decided to do some research. I did a study on the three best known inventory management apps. Cin7, Dear Inventory, and Unleashed offer inventory forecasting and metrics services to their clients.

Here are my observations and how you can benefit from them.

Cin7 Cin7 is popular for its ability to offer point of inventory management services to businesses regardless of their size. Right from the dashboard, a graph on sales by month caught my eye.

Subsequently, one is able to access many sales related reports sales by customer analysis, sales by product, sales by sales rep and sales by sales rep per product. All these reports are important inventory metrics and can also be used to estimate sales for the next period. Also directly related to inventory, you are able to access stock on hand, stock availability, stock aging report and cost of goods sold. Here’s how they assist in forecasting and improving performance.

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SOFTWARE COMPARISON

Sales by Month

Sales by Sales Rep

Show the trend by month whether sales are increasing or decreasing.

The trends can push for a decision to be made on whether it is necessary increase or decrease stock quantity on certain seasons.

Also, they can be used to predict the sales for the following month.

The analysis can be used to show how well their employees are performing and can also be used in calculating performance bonuses.

Similarly, sales by sales rep per product can be used to show the employees’ strength on selling certain products. One can make crucial decisions such as letting the employees concentrate on the product they sell best to increase productivity or if they should let go of unproductive staff.

Sales by Customer This analysis can be used to show customer loyalty and retention, thereby letting you know if your customers are making repeat purchases or not. It’s important to note that returning customers always mean more profit and they will always market your business via word of mouth.

Sales by Product This shows the performance of different products. It can be used to decide whether to continue selling certain products and if actions should be taken to improve the sales of another product. The sales by product report can also be used to forecast the inventory required per product, thus ensuring that we are buying the right quantities.

Stock Aging Report Shows how long a business is taking to sell its inventory.

By referencing inventory decisions on this report, businesses avoid having expired or obsolete inventory caused by overstocking.

Cost of Goods Sold Shows you the cost you are incurring to acquire inventory.

This is important in calculating the actual gross profit. Also, by knowing the actual cost, business owners are able to look for options that can lead to lower costs thus increasing profits.

Stock on Hand and Stock Availability Having accurate inventory data is vital to be able to maintain a certain quantity of products that is neither short or in excess of what is needed. It helps business owners plan restock times so no sales are lost due to shortage.

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Dear Inventory Dear Inventory is popular for its ability to offer inventory management across various sales channels. By clicking at reports tab from the dashboard, I was able to access many reports categorized under purchases, sales, inventory and other financial categories. There are specific reports that help business owners to forecast and make decisions based on the metrics they offer. Here are the reports and their benefits.

Product Availability Report Which further categorizes stock as available, on hand, allocated and on order. This gives you the accurate stock level and to which category it belongs to. As mentioned earlier, accurate stock is important to be able to gauge when to restock.

Inventory Aging Report Shows how long the stock stays before it is sold. This report assists in decision making regarding slow-moving products to avoid losses such as offering products at a discount and on having enough inventory for the fast moving products to avoid missing a sale.

Product Low on Stock Report This available if the business owner does not purchase inventory on suggested reorder dates, which means that inventory is below reorder points.

Inventory Velocity Report Data on this report is taken using lead time, safety stock and velocity parameter and is able to suggest reorder dates and quantity. This alerts business owners when to order more inventory and ensure there is no inventory shortage.

Sale Overview Report Sales by Order Date This report shows sales performance. It can be used to make decisions on how to improve sales such as marketing, advertising and offering products at a discount. It can also be used to forecast the next sales and buy inventories accordingly to avoid losses.

Sales by Product Report Shows how different product are selling. With this business owners are able to take necessary steps toward improving certain product sales as well as forecasting the products sales and restocking the right quantities.

Sales Profits Summary Shows the overall profits you are getting from all sales. If the profits are too low, business owners can take measures to improve sales and increase profit margins.

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SOFTWARE COMPARISON

Unleashed Popular for its ability to manage inventory in different warehouses and its availability in over 80 countries, Unleashed dashboard also welcomed me with performance percentages and sales margins and revenue graphs.

Furthermore, there are plenty of other information which can be used in forecasting and making inventory decisions based on metrics. Here are the information and how you can benefit from it.

Profitability Percentage Right in the first page, it shows the sales profits compared to other periods.

This data shows any increase or decrease in sales to facilitate decisions on whether marketing strategies should be improved to boost sales.

Annual Stock Turns and The Average Days to Sell Shows how long you taking to sell the inventory. The data helps determine how much stock is needed for certain products and shows any slow-moving ones so businesses can take steps necessary to improve sales strategies.

Costing Analysis Report The data shows which part of the operations are generating profit and which parts are not. It is helpful in determining how much of the budget goes to which department.

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Activity Performance Percentages Shows the productivity of business activities and if it is necessary to incur them. All businesses have both revenue generating departments and non-revenue generating departments, the purpose of this report is to determine whether such departments are necessary and if there is a need to allocate more or less funds to them.

Sales Margin & Sales Revenue Graph The graph curve shows a trend, which shows the performance of both sales margins and sales revenue on the given period such weekly, monthly or yearly curve.

This helps in making decisions on how to improve sales revenue. The curve can also be used to forecast the sales for the next period.

Stock Count Shows accurate stock count in different warehouses. This is especially helpful to those businesses with warehouses in different locations. You can monitor which product needs to be ordered for each warehouse, saving you time and money going back and forth checking the inventory of each location.

Customer Information Enables Business Owners to See if Your Customers are Returning.

Positive customer loyalty and retention means that the strategy being used is working and a negative report will alert us that there are things that needs to be changed or done in a better way.

Conclusion In conclusion, all three apps are both similar and different in their own ways.

Each app has its own way of helping businesses make informed decisions.

They are all quite strong from an operational point of view, giving very detailed reports on sales, and so forth. The dashboards, in all honesty, look quite cool, but might not be super useful. What they are useful in is giving a very quick snapshot of the most recent activities. Further, it is worth noting that the information in the dashboards takes a little while to refresh and therefore is not necessarily the most up to date information.

When it comes to forecasting each try’s their hand at forecasting. But the forecasting functionality is not that strong. Cin7 has a useful smart buyer functionality, but similarly DEAR and Unleashed have the same type feature. If you want more powerful dashboards that allow for scenario analysis from the dashboard, or even just more detailed and useful information, you will need to use a more custom solution, like WAO Connect.

For forecasting software such as Inventory planner, are awesome, and can be set up quite quickly. Next month we will be writing a full review on Inventory Planner.

If you have any other questions regarding Cin7, Dear Inventory, or Unleashed, please feel free to contact us or book a free discovery call.

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Data Entry Automation in 2019.

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By Jeri Wambeek In this article, I want to lay out the core features, beneďŹ ts and comparisons between three big names in the data entry automation space - HubDoc, Receipt Bank and AutoEntry.

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C H O O S E ?

Introducing HubDoc

Introducing Receipt Bank

The first data entry automation app we want to talk about is HubDoc. Hubdoc is a Canadian based software company established by Jamie McDonald in 2011. It makes record keeping so much easier by keeping track of all your financial documents. Since being acquired by Xero in 2018, Hubdoc has only gotten better. With the integration, Xero and Hubdoc is able to provide streamlined data capture, real-time financial data and organized and verified data.

Receipt Bank is a company founded in 2010 by Michael Wood. The company rose from the ashes of Receipt Farm as a solution first to the needs of its founder. With all the flexibility offered by Receipt Bank and its mobile application, users can upload and store their financial documents in seconds.

Integrating with Quickbooks, Xero and MYOB, Receipt Bank is no doubt helping businesses work smarter, grow faster, and grow further.

You can read the full history about HubDoc here. The first time I heard about HubDoc years ago, I remember being so excited about the auto-fetch feature. I will talk about this more below.

This article will outline the standout features from Receipt Bank. If you would like to know more about Receipt Bank any time, check it out here.

Next, let me introduce you to Receipt Bank - one of the most mature solutions in this space with a global market reach. It likely doesn’t need an introduction, but just in case, let’s start there.

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Finally, last year at QBConnect 2018, I had the chance to meet the team at AutoEntry.

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SOFTWARE COMPARISON

Introducing AutoEntry The number one feature that drew me to AutoEntry was the fact they have the ability to pull through inventory items and line detail (just like Invitbox used to do) and pull this information into Xero or QuickBooks Online. This was music to my ears because I know that clients that haven’t started using an inventory system yet to raise purchase orders would seriously benefit from this functionality.

For those of you that have to order products online and just have a receipt or invoice to show for it - no Purchase Order is raised then AutoEntry can save you some serious time.

Let me give you a little background on the company behind AutoEntry.

Founded by Irish software developer Brendan Woods in 2016, AutoEntry might be a fairly new competitor, but it has proven to be a worthy one. Utilizing Artificial Intelligence (AI) and Optical Character Recognition (OCR) - like the others - the software operates with speed and precision across a secure platform.

With more than 150 businesses being added to the platform daily, AutoEntry has become one of the fastest growing solutions in the automated data entry field.

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Now if you read anything I write, you know I will never call out one solution over another and say it’s the only way. I don’t believe there is a one-size fit all EVER. What I can do is help you discover the standout features about each of these solutions to help you make an informed decision which one is right for you. One solution will meet your needs. At WhichAddOn, we help you work out which one.

It’s very important to note too that these standout features aren’t unique to these solutions. For example, the standout HubDoc feature is auto collection of invoices, bills and statements.

Receipt Bank can do this too.

Receipt Bank call is Invoice Fetch.

The auto-publish feature which I love about Receipt Bank - pushing data automatically to Xero or QuickBooks Online - can also be done by HubDoc and AutoEntry.

Line by line detail, which I love about AutoEntry, Let’s learn about some of the standout features of each of these systems.

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Standout Feature of HubDoc Here is the tag line for HubDoc - “automatically import all your financial documents & export them into data you can use”. That’s a big statement.

Let me explain what it means.

With Hubdoc, you can automatically fetch documents from providers that have “live connections” with HubDoc. Of course, like all data automation software, like Receipt Bank, Expensify, AutoEntry, Datamolino - the list goes on - you can email your receipts and bills direct into HubDoc. The auto-fetch feature is also called auto-collection.

Here is a quick video on this powerful feature of HubDoc - How to Add Automatic Connections.

https://www.youtube.com/watch?v=KBoBJxNHdK8 Now as with all integrations, you are likely wanting to know if the providers you use exists to enable you to auto-collect your bills and statements like HubDoc promises. Of course, this list grows every day - but here is the latest list of providers that connect to HubDoc around the world.

List of Automated Connections with HubDoc here.

Next, let’s look at what I believe to be the standout feature of Receipt Bank.

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SOFTWARE COMPARISON

Standout Feature of Receipt Bank Receipt Bank has been around so long it has so many great features, you can’t just pick one. The program has paved the way for all of the other players to come along who try to do it better. Every twist in doing things a new way, a fresher way, is exciting to see - as it continues to push every player to be better, including Receipt Bank.

Every app I am talking about in this article can do auto-export to QuickBooks Online or Xero. Let me show how it works in Receipt Bank so you understand the concept. When I say, it can be as easy as taking a

photo of a receipt or sending a PDF of a bill into Receipt Bank, and it turns up in your accounting system as you entered it yourself - I’m not joking. It can be that easy.

If you want to auto-publish bills and receipts straight into Xero or QuickBooks Online from a submitted document, you need to add the supplier into Receipt Bank with the correct coding (e.g Supplier Telstra requires the contents of the bill to be coded to your Telephone and Internet account). This is called Supplier Rules. Check it out in action here.

https://www.youtube.com/watch?v=O6sk0xke7VE It’s pretty amazing, right? When you get your head around how easy it can be. It’s a no-brainer. I believe Receipt Bank was one of the first to have this auto-publish feature. HubDOC calls it Autosync, and AutoEntry calls it Auto Publish.

If you aren’t auto-publishing every receipt, bill and invoice in your business that’s not related to inventory into your accounting system - without entering any data yourself… Why not?

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TABLE OF CONTENTS

Standout Feature of AutoEntry I touched on it above, the one thing that stood out as a key feature of AutoEntry from day one was line by line item extraction. We were even able to use AutoEntry for a client that didn’t have a product database yet they just had piles of bills of products that had been purchased - and we were able to extract the product data into a CSV export straight from the bills.

coded to “Purchases - Finished Goods” and the WOOD to be posted to “Purchases - Raw Materials”, you could do this using AutoEntry’s powerful Line Item Rules.

This is video does a great job of explaining how this works and how to use it. https://vimeo.com/269892606

AutoEntry is able to look for particular information within your document and code to different accounts line by line. For example, let’s say if you two products CHAIR and WOOD. You want the CHAIR product to be

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SOFTWARE COMPARISON

What Do All These Apps Have in Common?

Every one of these apps can help you speed up the data entry in your business, save you time and money - especially if you are paying staff to do data entry, or you are losing expenses because of lost receipts and the like.

Some of the great things that each of these systems does, be it in a slightly different way are listed below: ● ● ● ●

They all connect to Xero and QuickBooks Online.

They all use OCR technology to pull data from various document types.

They all have a great app on iPhone and Android to help you quickly upload your documents.

They will all save you time.

So Which One Should I Use? As with choosing any cloud solution, the right software for your business is completely dependent on your business requirements. As we shared above, there are standout features for each one and features are very similar across the three. As products mature in the cloud space, it’s inevitable when they are all solving the same problems all businesses face in their niche.

If you would like to find out more about any of these solutions and help to determine which one is right for you, please don’t hesitate to reach out to us on the Live Chat at WhichAddOn.com and book in a free Discovery call with one of our Solution Engineers.

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At WhichAddOn, we bring the possible to life.

QBO vs Xero P

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In this fast-paced environment, people have gotten so used to being able to do things at the snap of their fingers. We get our information in milliseconds, our food in minutes, and we are taking that trend to our business dealings as well.

As businesses, we aim to make receiving payments from our clients as easy and as effortless as possible. Payment services, like Paypal, are online service providers that accept payments from various sources and somehow acts as a middle man between the bank and the business. In this article, we will be learning about the different payment services available to be used with Quickbooks and Xero.

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From the home screen, click on Company Name on the upper left side and select Settings.

Let’s start with Xero.

You will be directed to a screen where you can select Payment Services on the right hand side of the screen.

Once you are in the Payment Services screen, Select Add Payment Service and you will see the list of payment services you can connect with Xero

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SOFTWARE COMPARISON

Let’s start with Stripe. When you click on Stripe, a window will appear where you can input your Name, Payment Account and Fees Account. Click Connect to Stripe and you’re ready to receive payments.

It is pretty much the same thing with PayPal, once you click PayPal, a window will pop up and ask for your details. Once all the details have been filled out, all you need to do is click Save and it is set up.

Next is GoCardless When you tap on GoCardless, a new tab will open with the option to set it up.

Once you click Set Up Now, GoCardless will walk you through setting up an account and connecting it to your Xero account.

We now move on to eWay. Setting up eWay is very easy as well. Once all the fields have been filled out, just click Save, and you’re all set up.

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TABLE OF CONTENTS

Moving on to DPS, the steps are pretty much the same as the previous payment service providers. A few fields have to be filled out and it is set up.

Second to the last is Braintree.

Just a few more fields than DPS, but as straightforward as the other ones. Just fill out the fields and Voila! You have your payment service set up to receive payments.

Lastly, we have custom URL Payments. You can set up your own personalized payment URL on your Xero account just by filling out three fields and clicking Save.

There you have it! That’s it for Xero and the payment services that connect to it. Xero has made setting up payments as easy as can be.

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SOFTWARE COMPARISON

On the Dashboard, hover over the Banking icon and select Banking.

As many of us know, Quickbooks preceded Xero by a couple of years.

Quickbooks is also a cloud-based software that helps us stay on top of the financial side of our businesses.

Currently, Quickbooks only offers Paypal as a payment service you can connect to your Quickbooks account. PayPal is probably the biggest and most common payment service right now.

Click on the Add Account icon on the top right.

Setting up PayPal on your Quickbooks account is a quite easy to do. It only takes a few steps to set it up and receive payments.

Here are the steps on how to set up PayPal on Quickbooks.

Select Paypal among the choices on the screen.

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TABLE OF CONTENTS

Enter your Paypal Email Address and Password and select Continue.

If we compare these two, Quickbooks and Xero, it easy easy to see that Xero is a better option when it comes to the number of payment services that are able to be connected to it. As widely used as PayPal could be, people are starting to use other payment service providers as some are able to cater more to their needs.

Click on the Verification and select Continue. Paypal will then start connecting to your Quickbooks account and the next screen will let you know if it has been set up.

Final Thoughts: While Xero may be a better option than Quickbooks where payment services are concerned, it is not to be discounted that Quickbooks is still a very powerful tool that can be of great use.

If you have any other questions regarding Quickbooks or Xero or other software that integrate with those, please feel free to contact us.

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CASE STUDY

The Story It was on a trip to Fiji, on our anniversary in early January 2018.

We had just gone to our favorite restaurant, and on this occasion, we decided to dine on a rather sumptuous and tempting 800g roast. It was quite delicately cooked, prior to being brought out by the chef. At our table he would make the accompanying sauce in front of us in the portable kitchenette, this was all part of the service.

He then carves the roast which is exquisitely cooked, the aromas are tantalizing and our mouths water in anticipation. We dived in and you

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know when you eat quicker than you should, and your stomach looks like you just forced a football down it, well that's how we looked and felt.

We staggered back to our room, in a food coma, and sat down to watch some television, as that's about all we felt like doing. There wasn’t much on cable, so we decided to watch Netflix. After flicking through the many movies and sitcoms we decided to watch a documentary called “What the Health?” I was hoping to watch

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some light TV, but it turned out to be anything but that. By the end of it, we were quite close to throwing up the roast we had just consumed and ready to swear off meats and milk altogether.

Now in a past life, I was a personal trainer, and health is something that is quite important to me, what I watched on the documentary “What the health”, was confronting, and also made a lot of sense. It wasn’t all completely new information, we knew most of it, but it had never been put together in such a logical confronting manner.

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So we decided to reduce our meat consumption, and have a more whole foods plant-based diet.

However this brought up a rather complicated issue, how do we get our required daily protein consumption? And from what sources?

The answer to this question is the site justveganprotein.com.au, the site itself is in its infancy, and what we are hoping to do is spread the word about how easy it is to consume a plant-based protein, that actually is better than traditional milk and meat-based protein sources.

System We decided the best e-commerce platform to use would be shopify. The reasons being it was not complicated, it was easy to implement, it is really well supported with addons, templates and it is easier to ďŹ nd sta that are skilled at using shopify. The alternatives were a custom built site, magento and woocommerce were also available.

The reason we stayed away from a custom site, is the initial costs of creating such a site. Magento is also a very cumbersome and costly platform to use. It is very useful for high end and large sites, but for the simplicity of what we needed to be honest it is overkill.

Woocommerce is the cheapest of the solutions, and

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CASE STUDY

works well, but has limitations and speed issues which do not lend itself to what we wanted.

Behind Shopify we decided to implement Cin7 to manage all our stock, as we wanted a system that was future proof, and Cin7 ticked the boxes for us. That's not to say Unleashed or DEAR Inventory could not handle it. They really could, and they could do so very well, as all three solutions have very strong connections to Shopify.

Part of the product offerings will also include kits and we will also be selling on Amazon and ebay in the future. All of these solutions support kits and bill of materials, they also have connections to Amazon and ebay that work very well.

In the future we will also be looking to incorporate a 3PL connection this is also an area that Cin7 natively supports. However, both Unleashed and DEAR Inventory use

third parties, such as databot to achieve this.

The main reason we went with Cin7, is that we are planning to make our own brand of protein and sell them in the big retail outlets Coles, Woolworths and Aldi.

Cin7 is the only one of the three that uses its own native EDI interface, whereas both the other solutions use a third party to do this, and is not as well tested and proven as Cin7’s connection.

Final thoughts As we continue to grow Just Vegan Protein and add different channels we will keep you posted on how things are progressing and how well these channels are working on Cin7. We will also draw up a comparison table and tutorials on how this also works in Cin7, Unleashed and DEAR Inventory.

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Carl Anthony Castro W AO C O N N E C T A R C H I T E C T / A P I D E V E LO P E R

BIOGRAPHY Carl is a strategist fueled by compassion, curiosity, and the drive to succeed. He grew up in Cebu, Philippines and graduated with a Bachelor's Degree in Computer Science from one of the best IT Schools in the country.

While finishing on top of his Class he was offered a teaching job on the same school right after he graduated.

Teaching was his first professional engagement that kicked off his IT Career. After years of being bound by the four corners of a classroom he decided to up the ante and ventured into the corporate world.

He engaged into freelance programing but eventually found a job as Technical Support Specialist for top US Corporations like Hewlett Packard, Palm, and Time Warner Cable. After 10 years into the corporate world Carl had enough of the office atmosphere. He wanted a more exciting and outgoing kind of job, something that would require him to travel and visit different places.

Fortunately, it didn’t take him long to find one.

He found work as a Data Analyst for a couple of International Non-Government Organizations like UNICEF, World Bank, World Health Organization and Japan International Cooperation Agency. Working as such gave him the opportunity to travel a lot and visit places he never dreamt of. All the traveling indeed paid off as he met someone special in the early months of 2012 and married her by December of the same year.

Now, being a family man he spends his time working online at the comforts of his home office. While on his free time he spends it with his family either going out to the mall or to the beach.

Being one of the pillars of WAO Connect he is excited as to what this product could bring and how it will revolutionize the industry.

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Sidekick specialises in supplying ‘scraping’ tools to athletes who struggle with injury or who are actively trying to prevent injury.

Hin and his team conduct most of their sales online with the majority coming through Sidekick’s website.

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TABLE OF CONTENTS

System

Inventory management had always been an issue for Sidekick and they needed a better view on the value on inventory (including landed costs), as well as the movement of inventory. With the use of multiple distribution methods, such as, Amazon FBA and an American fulďŹ llment service provider, tracking inventory was tricky business.

There was no centralised system in place to provide a holistic view on inventories and Sidekick had long delayed implementing any solution as it was diďŹƒcult to source a system which could marry Shopify, Amazon and their 3PL provider. inventory is tricky business.

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CASE STUDY

Solution Cin7 was implemented to get rid of all of these headaches and we did manage to integrate Shopify, Amazon and the 3PL. With Cin7 as the central inventory management system Sidekick could view their entire business network in one place.

CURVE

As no native integration existed to connect the 3PL to Cin7 the Shipstation module was used to capture order data from the fulfillment service provider. Getting this working properly proved to be a great challenge as the flow of orders between systems is quite complex (Shopify -> Cin7 -> 3PL -> Cin7 -> QBO).

Final Thoughts

One of the let downs of integrating the 3PL this way was that we were not able to get all of the fulfillment data back into Cin7. For example, there are 2 3PL warehouses in use, on either coast of America, and we could not get the location, which the order was shipped out of, to appear in the system. To get past this, Sidekick decided to use one combined 3PL warehouse in Cin7 and monitor 3PL stock levels on the fulfillment service provider’s website.

What initially looked to be a simplistic implementation ended up being a long project with new issues coming out of the woodwork as we moved along. Connecting a variety of different systems can be difficult and workarounds or workflow changes may be required.

Sometimes we have to make

Tax rates have also been an ongoing problem as there are a variety of provincial tax rates in Canada which Cin7 struggles to deal with, however, we also managed to find a workaround here using ‘blended rates’.

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adjustments to work within the boundaries of the system but overall, having a central place to manage inventories through purchases, production and sales brings clearer visibility to the business owner.

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KEY TOPIC Inventory KPI's for Retail/Warehouse I am going to try and write an article that covers both retailers and wholesalers. The principles that drive both business types, are generally about the same.

The biggest difference is that retail tends to change with consumer buying habits a lot quicker. In saying that wholesalers that provide products that follow trends are also in a similar boat. I am thinking of fashion/apparel, food products, consumer electronics, and so forth. However, if you are not in these industries, I still think you will garnish a lot of value out of this article In my experience, I have come across a lot of different KPI’s and dashboards that look quite fancy, but seemed to provide little useful

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information that is quite pointless, and didn’t really lend itself to making key decisions.

Before I get into the actual KPI’s, I think it's important to identify, what questions you need to ask as a retailer and wholesaler. I narrowed down the questions required per product on an ongoing basis, this isn’t an exhaustive list, but distilled down to the most essential: 1. Is the price correct? Increase in 1. price? Decrease?

2. Have I got the right amount of 2. stock? Need more or less?

3. Don’t change anything, it's 3. perfect? Ie right price, correct SOH.

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If you can answer these simple questions per product line/variation on an ongoing basis, in the ideal world you would have the perfect product based business.

Trying to do this one product at a time, if you have 1000’s of products would be quite difficult, especially if you have an older type system, or even still trying to just manage it all on a manual system.

Trust me, I have had multi-million dollar clients, that sell products, that manage the whole process on paper and excel. Albeit they weren’t that efficient, but they did do remarkably well considering the tools at their disposal.

To answer the above questions, you will need a number of KPI’s that I believe are important to be able to make the right decision. The KPI’s we are going to look at in this article are:

Days of Supply (DOS) So what is days of supply? The phrase gets bandied around a lot, but not many people really know what it means. Well in simple terms it means how long will it take to sell out of present stock, assuming sales continue at the same rate as recent sales have been. This is weighed against a time frame like 30,60 or 120 days. If its in a highly seasonal time, you can change that average to be 7,14 or 30 days, so that you can make more accurate assumptions. It is one of the simplest statistics, for predicting the future.

Your own little crystal ball to predict what you will need to order.

Let me illustrate the point by giving you an example.

Lets say you have 100 black polo shirts currently in stock, and in the last 30 days you have sold 45. How many more days stock do you have left?

Calculation 45(sales)/30days = 1.5 Black Polo Shirts sold per day.

Current Stock = 100 Days of Supply left = 100 (present Stock)/1.5sold per day = 66.67 days of supply left.

1. Days of Supply.

2. Turn.

3. Stock to Sales Ratio.

4. Cost of Carrying Inventory.

In next months issue we will cover some further metrics.

5. Sell through percentage.

6. Gross margin return on investment.

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So how do you use this information?

Well to best put this to use, you will need to understand the seasonal nature of your product. If it is in season, you will want to make the weighted time frame shorter, however, if it is out of season you would obviously have a longer period. The other practical side of this is ensuring your supply days don’t exceed your lead time. Using the above example, we have approximately 67 days of stock left, but if your lead time is 70 days, you are running the gauntlet. You do not want your DOS to be greater than your lead time.

So its probably quite important to have a metric that calculates your DOS, and then contrasts it against lead times. This would potentially flag understocked, and overstocked items, and against lead times, would run a red flag, against stock that might need to be urgently delivered into your warehouse or retail outlet.

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TABLE OF CONTENTS

Turn Turn is how many times an individual inventory item is replaced in the course of a year. So in essence what your average stock level is and how many times per year that amount is sold out and restocked.

This is an important statistic to monitor, as it will tell you when to order, how much to order, what to sell and price to sell at.

I was a financial controller at a large bearings importer in Sydney. They had a very large amount of stock, somewhere in the vicinity of ten millions dollars or so. However, they have a turn of around 1.5.

Now obviously, if you drilled down to the individual items, there would be some products that did have a significantly higher turn, and some were simply not moving. The problem with this was a large majority of the stock, and the 80/20 rule seemed to apply, was catatonic, which meant that almost eight million dollars in stock was very slow moving and the bigger problem was that precious money was tied to this stock and could not be reinvested into other areas of the business or other investment options.

Let me illustrate this point below.

Calculation Lets say on average we keep 100 toy cars in stock, and we sell 100 of these toy cars every 4 months. So that would mean you would sell 300 toy cars annually.

Turn = Annual Sales/Average SOH ((beginning inventory + ending inventory)/2) Turn = 300/100 = 3 Which means you would turn over that item 3 times a year. Traditionally the higher the better, the mean point being around 6, greater than six and the product is doing well.

Below 6 and approaching 0 is problematic.

The implications are this, to move stock often pricing discounts need to implemented to encourage people to purchase more. This isn’t ideal but if you have a stock item with a very low turn, eventually this item might become obsolete, and if its a food item, or something with a useful shelf life, it will become worthless to you and you will not be able to recover any of your money.

Now there is a myriad of uses for this and I have illustrated just one, but in combination with days of supply report, you can become a lot smarter about what you order, and how much you re-order. Get this right and you will not only free up precious capital, but you will make your warehouse carrying costs less as well.

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Stock to Sales Ratio Stock to sales ratio is a key statistic for measuring whether or not you are overstocked and understocked.

Any manager wants to know what they are over/understocked.

So in a nutshell for every unit sold, how many units were on hand.

Simplified, if you had 30 dress shirts in the storeroom when you sold 10 out of the 30, then you know in order to sell 10 dress shirts, you would always have to have 30 of those dress shirt in the storeroom.

and ended up overstocking a lot of products. The person who was slotted in for her position, ended up not committing to the position, and she ended up taking the position again. With putting in the new system, it became glaringly obvious, some stock was quite heavily overstocked, and the owner wasn’t too thrilled about the situation.

Just recently I did a client install, where a staff member, who was going to resign, thought it would be a good idea to order quite a lot of stock, to tide over the owner, in case the new person wasn’t ofay with the task at hand. However, she wasn’t very wise, and did not understand key statistics,

Calculation Using the example mentioned above, 30 shirts average stock, to sell 10 shirts. Give you a 3:1 ratio.

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That being said, let me give you an example, so you can better understand the statistic

That tells you to sell 10 shirts you seem to need to hold on average 30 shirts.

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Now you might think that's a rather strange metric, and its a bit of a pie in the sky type of statistic, but the reality when you work with products, there is a phenomenon that occurs when a customer walks into your shop or calls in regards to a stock query, and you let them know that you have minimal stock on an item, its almost unspoken, but customers assume you have a poor idea of what stock you need as a business and would prefer going to a supplier that is carrying all they want.

The inverse is also true, when you have everything, it gives the customer confidence. But then you could go the other way, and grossly overstock, and tie $$$$ that could be used in other areas. So understanding the stock to sales ratio, in tandem with DOS, and Turn helps you get closer to getting it right.

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Cost of Carrying Inventory 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

It should be quite straight forward to get your average inventory value, if you have a inventory management system, if not it might be quite cumbersome and a long drawn out process, that might not be too accurate.

The more complex calculation is the inventory carry costs, this rate requires that you pay careful attention to the cost of carrying inventory. I will use a hypothetical example to assist you in this calculation.

Add up your annual inventory costs Storage - $80k Handling(staff, logisitcs, machinery, etc) - $120k Obsolescence - $20k Damage - $10k Administrative - $90k Loss (stolen, etc) - $30k Total - $350k Divide the inventory costs by the average inventory value. $350k / $2500k x 100 - 14% Add up your The opportunity cost of capital (the return you could reasonably expect if you use the money elsewhere) 7% Insurance - 4% Total - 11% Add your percentages 14%+11% = 25% Your inventory carrying rate is 25%, so the cost of holding $2.5million in stock is $625k, which is signiďŹ cantly higher than the initial direct costs associated with inventory. The hidden costs of insurances, opportunity costs, taxes, etc can be quite signiďŹ cant.

When calculating these costs, you should be quite meticulous in going through your general ledger and breaking these costs down and then tracking them, so that you have a very clear idea of what your carry cost actually is.

In our next issue we will look at a few other metrics. Stay posted!!

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CASE STUDY

Tas Rural Supplies provide a comprehensive range of farm-related products designed to improve a farm’s output and efficiency. Designing and manufacturing products to the highest quality - Tas Rural products are made by farmers, for farmers.

From fencing to cattle equipment, hay feeders, trailers or just stock supplies, Tas Rural has a huge range of products for Tasmanian farmers in the retail store in Cambridge, with delivery available and online ordering. Tas Rural Supplies was introduced to us by their trusted bookkeeper who knew what’s possible for a business like this but needed WhichAddOn’s help to bring the possible to life.

This is our story of how we helped Tas Rural Supplies.

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TABLE OF CONTENTS

management wasn’t a huge problem. Back then the business was just running out of a shed and cash flow was the most important need to fill. Xero was fantastic at providing the real-time view and enabling positive cash flow. Professional invoices could be created easily, payments received and reconciled with the click of a button. Even when the retail arm of the business started, the sales were infrequent enough that raising a Xero invoice manually was suiting the business just fine.

Problem Tas Rural was already pushing Xero to its limits. When implementing Xero initially, they knew that the inventory management of Xero wasn’t powerful enough for their business, but starting out, inventory

Fast forward just a few months and the business has expanded rapidly.

Now with a fully-fledged retail store, warehouse and ever-expanding product range - managing inventory and all the moving parts in the business was getting out of hand. One of the core problems, other than just knowing what was already on hand, was tracking the purchase orders that were already

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placed so everyone in the business knew what had been ordered and when it was coming.

Secondly, the Tas Rural team needed a way to actually track special orders, orders at trade shows when they visited farming expos interstate and bill of materials were needed to keep track of all the components that were going into various kits and bundled products.

Finally, managing lead times and minimum stock levels on the large and varied product range was a must, and Xero just simply can’t help with this. It also couldn’t help them with managing bin locations, barcodes or point of sale. They needed a system that would work really nicely with how Xero was already setup, but also help them keep track of their stock (and their costs) from purchase all the way through to the sale.

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CASE STUDY

Built Tough to Take the Hard Bumps of the Serious Farmer

Solution DEAR Inventory was the solution for Tas Rural Supplies. It works seamlessly with a very tight Xero integration and it has the following which was a must for Tas Rural: Purchase Orders with expected delivery dates and lead times on suppliersprofits.

Minimum stock levels and low stock alerts.

Barcode label generation for products at the product level and when product arrives.

Point of sale for the retail counter and trade shows.

Manage multiple warehouses including bin locations.

Facilitate regular rolling stocktakes easily.

Manage multiple price tiers.

As an extra, Tas Rural’s custom website is able to be connected to DEAR Inventory through the open API. This means that any manual orders that are currently being posted directly into DEAR will be automatically received from the website and in DEAR for processing within an instant.

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Final Thoughts When it comes to customer service - being able to provide the products to the customers that they need when they need - DEAR has been able to help Tas Rural manage the growing pains it was experiencing and now they are ready to go next level.

If you are a business that needs help managing the growing pains in your business because your stock is in chaos, DEAR Inventory may be the solution for you. It’s not just a great solution to use when starting out, it can grow with you.

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Now, there is no “one solution fits all” EVER in this industry, so please don’t get fooled. Feel free to reach out to any of our WhichAddOn staff on the live chat at WhichAddOn.com and book in a free Discovery Call with one of our expert Solution Engineers to assist you to find and successfully implement the right addon for your business today.

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Contact us using the form below and we will get back to you as soon as possible. Alternatively you can also call us on 0400 545 447 on weekdays from 9:00AM-5:00PM.

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