Sage Timberline Office version 9.7 includes a wide range of automation, workflow and process improvements to make it easier to get more done in less time.  Enhancements include:

• Simplified Installation
• Document Management Rules-based Routing
• Technology Updates
• More Comprehensive Tax Filing Capabilities and Improved Payroll Management
• BIM-Estimating Quantity Takeoff Integration
• Advanced Assembly Databases
• Excel-based Reporting – Office Connector Starter for Sage

To read more about these upcoming enhancements, click here to download the PDF.

IMPORTANT REMINDER!  You may recall our post from August 2009, alerting you to a media change from CD to DVD for Sage Timberline Office Accounting and Estimating products in 2010.  Well, the time has come!  Sage Timberline Office Version 9.7 will be distributed in DVD format only (except Residential Management, Document Management and some peripheral products still distributed on CD).  Please discuss any necessary changes with your IT professional so you can avoid suprises when you are ready to upgrade. 

We’ll announce details about the release date when more information is available.  At that time, contact our IT Group for any direction or assistance with your upgrade at 888-865-9425.

We recommend you call Sage’s official forms provider for Sage Timberline Office, Sage CRE Forms.  Their products are guaranteed to work with Sage Timberline Office.  They even have AIA forms such as invoices (G702 and G703), deposit tickets, and MICR toner cartridges for your printer.

Call 800-760-7929 or visit www.sagecreforms.biz.

If you have year-end questions or issues, please call our support line: 888-865-9425.  We want to answer your questions!

As a valued client of Sage Timberline Office, you probably aren’t thinking about whether pictures will load on your website or if Twitter will “mis-tweet.” Nevertheless, the troubles of others remind us that regular maintenance and proper prior planning can prevent problems.* With Sage Timberline Office, that includes the following:

1. Purge vendors BEFORE you close the year in AP. Tools > Remove Vendors looks at the current year fields to identify vendors you’ve done business with. The current year totals roll over when you close the year. This tool also has a handy preview function, so you can see which vendors will be purged (please use it).
2. Archive data. Consider how much historical data you need in your Current file versus your History file. The smaller your Current file, the faster transaction-based reports and other functions will run. Archiving processes were (relatively) recently made available in Project Management, Service Management, and Property Management, so take some time to look at those modules too.
3. Consider your upgrade path for software and hardware. First, you need to install the year end release for the current software you have, be it 9.4.1, 9.5, or 9.6.  Don’t forget to download payroll taxes too!  Second, think about whether you want to upgrade to the next version.  For example, if you are upgrading hardware to Vista, Windows Sever 2008, or 64-bit, then you must upgrade to 9.6.  If your hardware is relatively dated, you probably don’t want to upgrade to a version that is designed to run on newer, more powerful workstations and servers.
4. Year end is a challenging time, but it goes more smoothly for a workforce that has good training.  Trained employees avoid errors, or correct mistakes on the first attempt, rather than “fixing” things incorrectly multiple times . . . or just using the software inefficently. Sage Timberline Office has several options: public and private classes (including onsite using our “mobile classroom” of laptops), online recordings (Anytime Learning), online assistance, our toll-free support line (888.865.9425), and onsite visits by consultants.  Call our support number or email me at towner.blackstock@cisinfo.com to discuss your options.

Happy New Year from all your friends at CIS Consulting Group!  May 2010 be a safe, productive, and profitable year for you.

*Fans of such alliteration will love “P-7″ even more: Proper Prior Planning Prevents Pitifully Poor Performance.

Two times on December 10!
11AM-1PM EST / 9AM-11AM MST  – REGISTER NOW
1:30PM-3:30PM EST / 11:30AM-1:30PM MST  - REGISTER NOW

The session will review strategies and appropriate cut-off techniques for moving data on a module-by-module basis. Attendees will take away a specific archiving plan for their company. We will review the data management tools of each module.

Sage Timberline Office Year-End Tips 

Two times on December 17!
11AM-12:30PM EST / 9AM-10:30AM MST - REGISTER NOW
1:30PM-3:00PM EST /11:30AM-1:00PM MST - REGISTER NOW

Let CIS Consulting Group help you tackle those year-end processes with confidence.  In this session, we’ll discuss the most common questions regarding year-end updates and year-end closing processes as they relate to AP, AR, PR, CM and GL.

Questions?  (888) 865-9425 or support@cisinfo.com.

Sage Support will email all current Sage Timberline Office clients on support an email alert around the second week of December which will have a link to download the Year End software changes to the following versions of  STO:

• CD Version 9.41
• CD Version 9.50 Rev 1
• CD Version 9.60 Rev 1

What is the difference between the “Year End Software Update” and the “Payroll Tax File Update”

• The Year End Software Update (Year End Update) is a downloadable software package that you will run at the server and all of your workstations (see installing the Year End Update later in this FAQ).  This update will prepare your system primarily for printing government forums.
• The Payroll Tax File Update (Download Taxes in PR) is a downloadable tax table for the federal government and the 50 states for the PR year of 2010.  This is typically only done once from one workstation.

Do I need to install the Year End Software Update?

Read the release notes that accompany the alert for the specific changes in the Year End update to see if you are impacted by any of them.   If you use STO to generate government forms (i.e. W2′s & 1099′s) and any of the listed forms on the update are changed, you will want to apply the update.

When should you download the Payroll Tax File Update?

You should download the 2010 tax update after you are done processing 2009 Payroll and have closed the 2009 year in Payroll, but before you process your first payroll of 2010.  This task is done inside the Payroll application under Tools -> Download Taxes or under Sage Desktop under Payroll -> Tools -> Download Taxes.  This typically only needs to be done one time from a workstation.

When will Sage send the Year End Software update?

Sage support will send the Year End Software update to all clients who are currently on support.  This will be in the form of an email alert which will probably be sent anytime in the time frame of December 1st to December 15th.  The update inself will be a link in the email to download from the Internet.

When should I install the Year End Software Update?

Before you print tax forms that are due before January 31st.  Typically, these are the Payroll W2 forms and the Accounts Payable 1099 forms.  You can do your year end processing on your current software, but make sure you load the update before printing this forms in January.

How do I load the Year End Software Update?

Specific instructions will be included in the email alert from Sage. 

In general, the steps would be:

1. Backup all of your Sage software and data
2. Install the update at the server
3. Upgrade your data files at the server
4. Install the update on all your workstations

Do I need to install the Year End Software Update before I close the year?

No.  You should be able to close the year in the current version of the software you are using.

Do I need to install the the Year End update before I move transactions to history?

No.  You can move transactions to history at any time.

Contractors face a slew of challenges this year. The global recession that started with the downturn in U.S. residential housing continues. Gloomy headlines, slowing sales, and rising unemployment have combined to create a high level of pessimism in the construction industry.¹  There’s no question that it’s tough out there. Housing starts and total construction spending have decreased year-over-year.²  And there is a large inventory of unsold homes that need to clear the marketplace before significant recovery can occur.  There are some compelling reasons to believe the economy might begin to turn the corner later this year.  The government is responding to this recession with unprecedented spending on economic stimulus.  But contractors will have to weather tough conditions for at least a few more months before the government stimulus can begin to make a positive impact in the economy.

Are we there yet?

David Crowe, chief economist for the National Association of Home Builders, believes a slow recovery will begin this year.  “I do think we will see a bottom in 2009 and by the end of this year we will start to see the beginning of a recovery.  But it will be a slow recovery because of the significant overhang of empty houses for sale,” he acknowledged in a recent interview.³  The current stimulus package includes funding for shovel-ready public construction projects that will provide contractors with work for their crews and a guaranteed payday.  Meanwhile, interest rates are very low and new tax credits for first-time home buyers should increase demand. Other government programs will focus on shoring up banking institutions and should lead to more lending activity.  Healthier banks will be able to maintain and protect your business lines of credit, and finance projects for your customers.  Anirban Basu, chief economist for Associated Builders and Contractors, Inc., sees some areas of opportunity in commercial construction, although he anticipates the overall economic picture to remain bleak through 2009.  “The ongoing U.S. recession has become increasingly apparent in the level of nonresidential construction activities,” he wrote recently in the Construction Economic Update, “Fortunately, there are several positive elements in the economic environment, including the infrastructure component of the stimulus package, ongoing military-related construction in many parts of the United States and falling construction input prices.”⁴

Find the fast lane to recovery

Contractors who employ smart strategies today can enjoy increased profitability and market share when the economy turns around.  Financially healthy construction businesses build competitive advantage during recessions by taking advantage of:

• Falling materials prices
• Reduced competition as less able businesses fail
• Fire sale prices on equipment
• Opportunity to purchase competitors’ businesses
• Ability to hire the best talent

Right now, your company needs to survive so that it can thrive later.  This guide contains nine tips to help you run a smart business in a rough economy and position your company to gain competitive advantage in the next economic expansion.

When business is hot and jobs are plentiful, it’s critical to set aside cash for slower times.  This is especially true in industries prone to booms and busts, such as construction and real estate.  The cash you saved during good years will provide a cushion to see your business through the recession.

How do you know if you have enough cash?  Experts typically recommend having enough cash and established lines of credit to fund your business for one year.  Of course, the bigger your cash reserve, the longer you can survive if the downturn persists.

Since this economic contraction has already gone deeper than predicted, it is more important than ever to watch, understand and plan your cash flow. You should review a daily, or at a minimum, weekly cash flow report and check it carefully before approving any expenses.  Cash flow and cash preservation should be your top priority.  Do a thorough review of your operational and financial information to find ways to cut unnecessary expenses and maximize efficiency.

If you haven’t developed a contingency plan for economic downturns, there’s no time to lose.  According to Jayme Broudy, founder of the Contractor’s Business School, the key to surviving recessions is to be the most efficient, well-managed business in your area.  And the way to do that is to live by a well-constructed contingency plan.⁵

Many businesses can improve the bottom line by up to 5% just by gathering and analyzing information more effectively.  To improve cash flow and guard your reserves, you need to know your business inside and out so that you can cut in the right places.  When you’re in the midst of a crisis, you won’t have time to do that kind of analysis.  A contingency plan helps you make the best decisions quickly.

Your plan should include what you will do about manpower, equipment, pricing, overhead, cash and expenses at differing levels of revenue and economic conditions.  For example, if business drops off 20%, where will you make cuts? Do you need to lay off employees?  Will you sell equipment, or rent it out?  If revenue drops an additional 10% next quarter, what further actions will you take?  Your contingency plan should answer these questions based on quantifiable past performance data.

Use your accounting software to generate reports that help you model what-if scenarios.  Review past quarter and past year total labor costs, equipment costs, and materials costs.  You should be able to see trends in these costs – are they going up or down?  Use job cost reporting to analyze the average profitability of your jobs and know what types of projects are most profitable for your business.  Go over your P&L carefully on a regular basis.  If you can’t produce these reports quickly and easily, it’s time to upgrade or replace your current accounting software.

With fewer projects available, you’ll want to bid on – and win – as many projects as you can.  But you don’t want to underbid and suffer a costly mistake.  It’s more important than ever to produce fast, accurate estimates.  Material costs have changed rapidly over the past two years, first shooting through the roof and now falling back.  It’s impossible to keep an accurate spreadsheet of all your estimating cost.

Consider using Estimating software that includes a specialized database with regular updates to ensure that you are using accurate costs for your materials and labor.  Automated estimating software can help you complete each estimate in as little as half the time of manual calculations, so you can compete for twice as many jobs.  An estimating solution that integrates with your accounting and operations software significantly increases efficiencies and reduces errors.

If your payroll expenses are too high, do not wait to make necessary reductions in force.  Payroll and benefits represent the largest expense in most businesses.  Use your contingency plan and try to identify and cut the least productive (and therefore least profitable) employees first.  The longer you wait to cut costs, the more cash you will burn.  If you keep your business healthy, you’ll be able to create new jobs when recovery begins.

With credit harder to come by, it’s not just about getting jobs anymore.  It’s about getting paid.  Protect yourself with airtight contracts and careful verification of prospective customers.  Pre-qualify customers to make sure they are able to pay before work commences.

Bankruptcies are increasing, so keep a watchful eye on your Accounts Receivable.  When payment is due, follow-up promptly, and preserve your company’s lien and bond rights until you have been paid in full.  You don’t want to find yourself at the back of the line if your customer goes into bankruptcy.

You’ll also need to verify that your subcontractors are sufficiently solvent to finish the jobs that you hire them to do.  And unless your state allows “pay if paid” contracts, you will owe your subcontractors for work completed even if your customer fails to pay.⁶

Experienced business owners know that if you advertise when others are silent, more prospective customers will hear you!  Companies that preserve their marketing budgets will benefit from the reduced noise in the marketplace.

What types of marketing should you invest in?  First, make it easy for prospective customers to find your company. Build and maintain a Website, advertise in the phone book, and learn about how to improve your company’s ranking in online search engines (or hire a consultant).

Don’t forget about low-cost or no-cost advertising.  Can you place flyers in a local home improvement store, or other high traffic location?  How about online advertising on basic, yet popular, sites like Craig’s List?

You probably know first-hand that word of mouth referrals are the best kind of advertising.  Deals close more easily when an existing customer vouches for the quality of your work.  Word of mouth advertising is one of your most valuable resources – and it costs you nothing but great customer service.

Make sure that your existing customers continue to be satisfied with your work.  If something goes wrong, make every effort to fix it right away.  An angry customer can do more damage to your reputation than a satisfied customer can enhance it.  A study conducted in Texas revealed that the average dissatisfied customer gripes to 11 people about his experience, and these 11 each tell five more people.⁷  That’s 66 or more people in your community with a preconceived negative opinion about your company! That’s how critical excellent customer service is to your business.

During boom times, it pays to specialize.  Having a niche allows you to concentrate all of your efforts on one type of project so that you can do more of them in less time.  In a downturn, the opposite may be true.  So, don’t let old habits prevent you from applying your experience and skills to other types of construction projects.  Consider trying to:

• Renovate, remodel and rehab – If you’ve been building new construction, you have the right skills and equipment to improve on existing construction too.
• Expand your territory – Look to neighboring geographic areas for potential new business.  With some competitors calling it quits, and gas prices much lower than last year, it may pay to drive a little farther.
• Bid on public projects – If you’d like to try for some of the shovel-ready public projects promised in the stimulus bill, be sure your accounting and payroll software supports multiple pay rates.  You’ll need to comply with “Prevailing Wage” laws for federal and some state funded contracts.

It’s a fact – when the economy deteriorates, more lawsuits get filed.  Because your company is more likely to be involved in litigation, it’s critically important that you keep proper records and documentation to support the work that you perform.  Whether you are forced to sue a defaulting client, or your company is named as the defendant, your attorney is more likely to prevail when you have complete documentation.

Make sure you have an organized system to keep estimates, contracts, notices to proceed, change orders, and other key documents for every project.  Ideally, you should be able to store this documentation electronically so that it is easy to find and distribute if your attorney needs it.  Sometimes, you may even be able to avoid the courtroom altogether with proactive documentation and that will save you a lot of expense and frustration.

If you’ve built an adequate cash reserve, this downturn could be a smart time to invest strategically in your business.  While your competitors are hunkering down, you can take advantage of opportunities to improve your business and become more productive.

Your investment in tools, trucks, and other heavy equipment will go further today than it would have in the recent boom years.  You can also take advantage of this time to upgrade your business management software in ways that will help you win more jobs.  Consider construction-specific accounting software, as well as project management and estimating solutions.

Whatever capital expenditures you plan, you are likely to find excellent prices that would have had contractors lining up two years ago!  When the next economic expansion comes, you’ll have what you need to make the most of it, at a fraction of what your competitors will have to pay.

If you purchase equipment, vehicles, or software for your business in 2009, you can take advantage of tax incentives included in the new stimulus bill.  Higher Section 179 limits allow you to fully expense up to $250,000 of depreciable business equipment, including software, during the 2009 tax year.  Or, you can enjoy 50% bonus depreciation on eligible assets.  Consult your accountant or tax advisor for details.

Finally, don’t forget to invest in your people.  A less busy schedule creates the perfect opportunity to participate in advanced training and learn new skills.  By expanding your knowledge, you’ll find new opportunities for your business and discover ways to serve existing customers better.

In Conclusion

With good planning and some strategic thinking, your company can come out of this recession stronger and more competitive than ever.  If you guard your cash flow, stick to your contingency plan, look for different types of projects, and keep investing in your business, you will be ready for new opportunities.

Based on the average length of previous recessions, the economy is likely to begin improving in 2009.  Use this time to boost productivity, become more efficient, and engage in effective cost-cutting.  Your company will be leaner and healthier than competitors when the economy turns around.

Drive Your Business Forward with Sage!

For over 30 years, contractors have depended on Sage Timberline Office and Sage Master Builder for construction-specific software that improves productivity and profitability.  Sage provides award-winning software and support to more than 21,000 construction and real estate customers in the U.S. and Canada.

Take your company to the next level when you manage and connect all aspects of your business with integrated software solutions for accounting, estimating, project management, procurement, and more.

To learn more about how Sage solutions can support your business objectives and help you implement the strategies in this guide, visit www.cisinfo.com or call 800-890-7562.

Sage North America is part of The Sage Group plc, a leading global supplier of business management software and services. At Sage, we live and breathe business every day. We are passionate about helping our customers achieve their ambitions. Our range of business software and services is continually evolving as we innovate to answer our customers’ needs. Our solutions support accounting, operations, customer relationship management, human resources, time tracking, merchant services, and the specialized needs of the construction, distribution, healthcare, manufacturing, nonprofit, and real estate industries. Sage North America employs more than 5,000 people and supports nearly 2.9 million small and medium-size business customers. The Sage Group plc, formed in 1981, was floated on the London Stock Exchange in 1989 and now employs 14,800 people and supports 5.7 million customers worldwide.

©2009 Sage Software, Inc. All rights reserved. Sage, the Sage logos, and the Sage product and service names mentioned herein are registered trademarks or trademarks of Sage Software, Inc., or its affiliated entities. All other trademarks are the property of their respective owners.
09-50966 0309

Notes:

We still have a few more weeks of summer left, so it seems odd to be thinking about year-end already!  Despite the fact that it’s almost 90 degrees outside and school is still out, Sage is planning ahead and has released an official communication with their plans for the 2009 year-end release.  This information comes along with the announcement of the newest release of Sage Timberline office (version 9.6 update 5), which will be available for download next week.  This newest release for 9.6 includes many new features, which you can read about here. 

For 2009, the year-end update will be compatible with the following versions:

• 9.4.1
• 9.5.0 and 9.5.0 Rev 1
• 9.6.0 and 9.6.0 Rev 1

If you are on a version earlier than 9.4.1 and use Timberline for year-end government reporting, it is recommended that you upgrade to version 9.6 before December.

One more thing to consider, beginning in 2010, Sage Timberline Office Accounting and Estimating products will be distributed in DVD format only (although, some updates may still be available by download).  Document Management and some peripheral products will still be distributed on CDs.  You should discuss this with your IT professional to determine if your system is capable of accommodating this media change.

As always, feel free to contact us with questions at 888-865-9425 or by email at support@cisinfo.com.

You'll love these new features!

Sage software announced some exciting new enhancements for Sage Timberline Office due to be released sometime this summer.  This update (9.6.x) will be distributed electronically and will include:

• The new Sage Installation Manager
• Project Management Payroll Integration
• Create RFIs from Field Report task
• Inquiry Improvements
• Service Management PO Description prefills from Workorder
• DM Native File Format
• 64-bit Compliance
• Ability to Submit Enhancement Requests from within Software

 **Click here** to read more about these new features.

The above enhancements are in addition to the slew of upgrades already included in Sage Timberline Office version 9.6.  If you have not yet installed 9.6, keep in mind that you can go directly from version 9.4 to 9.6.  If you are on a software version prior to 9.4, feel free to contact us at 888-865-9425 for the appropriate upgrade path.

“You’re using Sage Timberline Office to produce and reconcile AR invoices.  A great start, but are you doing everything you can to maintain a firm cash position?  Click the link below to learn more about how MyAssistant can enhance your receivables process.  For example, learn how to ensure all costs and change orders get billed, customers have what they need to promptly pay your invoices, and you don’t don’t lose your lien rights.”

Use MyAssistant to Improve your Receivables Process

If you would like assistance with using My Assistant, please contact CIS Consulting Group at 888-865-9425.  You’re also welcome to email me directly at towner.blackstock@cisinfo.com.  I always enjoy hearing from you!

Macros are a great way to streamline your mundane, repetitive processes. Take printing monthly reports for example. Don’t you print the same reports each month? Why not record those steps and have a macro do the work for you. It’s easy once you understand the basics.

Take a look at this short instructional video to learn how.

Leave a comment and tell us what you think. If you already use macros, feel free to share with others how you’re using them to streamline your tasks.