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Automation Components Distributor Dramatically Improves Profit Reporting Accuracy With AccountMate Software
PETALUMA, CA- (Marketwire - June 24, 2008)-Located in
New York, Empire Automation Systems provides sales, technical
support and engineering services to the automation industry.
Since 1989, the company has expanded from a full line
pneumatics distributor to a major automation supplier with their
comprehensive product offering in all major pneumatic
component categories such as air preparation, motion control,
valves, electrical components and accessories.
Since doubling sales revenue from 2003-2007, Empire continues
to expand their selection of pneumatic inventory, strategically
leveraging the use of stock and non-stock inventory items. With
over 40,000 items in stock, the company also distributes tens of
thousands more non-stock inventory which are drop shipped
directly from vendors.
At one point accurately identifying, managing and reporting
stock and non-stock inventory was a significant business
challenge. The Controller and CPA regularly made large journal
entry adjustments to the inventory and cost of goods sold
accounts to resolve discrepancies. "Inventory values would
swing up to $20,000 each month causing significant variances
in profit," recalls Don Davis, President of Empire Automation
Systems. "With so many adjustments on a monthly basis, I
didn't trust the numbers."
Consequently, Empire wanted to solve their inventory discrepancies
and accurately report company financials without significant
manual intervention. To resolve the situation, Empire turned to
Innovative Software, an Elite AccountMate Solution Provider.
Innovative Software capitalized on AccountMate's Accrued
Received Goods capability to separate stock and non-stock
inventory within the financials. This enabled accurate reporting of
profits and inventory valuations on the income statement.
Empire is able to report accurate, up-to-date financials and
inventory valuations in real-time with minimal human resources.
With stock and non-stock inventory averaging $750,000, the
company plans to increase non-stock inventory as their
business grows. Drop shipping orders from vendors directly to
customers also decreases shipping lead times, company
overhead and inventory management.
Another big benefit of using this capability is that it provides
company-wide checks and balances. For example, if an item
price is entered incorrectly or not received properly on a
Purchase Order, Accrued received Goods assures the data is
entered accurately or else the system will not let Empire
employees proceed. In addition Innovative Software developed
a critical audit report to show incorrect values posted to the
accrued received goods and both inventory accounts. This
report turned out to be the final piece needed to allow such
accurate inventory balancing.
Within three months, Empire and Innovative Software worked
together to develop the necessary audit tools and disciplines
needed to not only meet company goals, but exceed them.
Since these changes were implemented, Empire has been able
to reconcile the Stock Inventory with the General Ledger
inventory control account to within pennies, all without a single
journal entry.
"Doug Johnston has proven time and time again, what an
invaluable member he is of our team, by continuously making
recommendations and developing solutions to our problems.
Today our reports are very black and white. We can depend on
the AccountMate system and rely on the numbers without
question," says Davis.
About AccountMate
Founded in 1984, AccountMate develops and markets fully
modifiable business accounting software. Systems range from
single user versions to those that support over hundreds of
users simultaneously. AccountMate software is distributed
exclusively through a worldwide channel of authorized Solution
Providers. AccountMate can be reached at (800) 877-8896 or at
www.accountmate.com.
Contact Information
Donna DeRosa
Vice President
(800) 877-8896
donnad@accountmate.com
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