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Quickbooks: The New Economics of Making a Change

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Most companies start out on QuickBooks. It is cheap and easily adopted for small companies with relatively straightforward accounting needs. However, many companies grow their top and bottom line …

Most companies start out on QuickBooks. It is cheap and easily adopted for small companies with relatively straightforward accounting needs. However, many companies grow their top and bottom line without growing their systems, and legacy technology can slow you down, increase costs and reduce revenue and profitability.
This presentation content focuses on current and emerging trends in accounting and reporting systems for small and medium sized businesses (SMBs) looking to move to their next accounting system. and experts on growing company accounting, ERP and reporting systems designed specifically to meet the needs of growing SMBs, including cloud computing and SaaS based applications

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  • 1. Event Sponsors © 2011 Proformative. Proprietary and confidential
  • 2. Welcome to ProformativeProformative is the largest and fastest growing online resource forsenior level corporate finance, treasury, and accounting professionals.An ad-free, noise-free community of more than 350,000 CFOs,Controllers, Treasurers and related professionalsA resource where corporate finance and related professionals excel intheir careers through: Uniquely valuable, online Peer Network Direct subject-matter-expert advice Valuable Features and ResourcesAll of it completely free and noise-freeCheck it out at www.proformative.com © 2011 Proformative. Proprietary and confidential
  • 3. THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALSWhen is it Time to Move Beyond QuickBooks? Greg Allworth, Regional Sales Director, NetSuite
  • 4. Is This You? “ We had plenty of information; It was all over the place It was in spreadsheets, QuickBooks reports, emails. But it wasn’t integrated consolidated reporting was manual and tedious It could take many hours for a large report and we couldn’t vouch for a high degree of ” accuracy © 2011 Proformative. Proprietary and confidential
  • 5. Or is This? “ We were running on about five different systems, and that led to a real inability to connect records between two systems, We had no 360-degree view of our customers and activities, ” and I was constantly starved for information © 2011 Proformative. Proprietary and confidential
  • 6. Or Maybe This?“ There was literally a big line in the sand where sales had to throw a prospect over the wall once they became a customer, and accounting had to re-create all of the information about that customer The people accessing accounting data didn’t ” have access to the CRM system © 2011 Proformative. Proprietary and confidential
  • 7. A Typical Applications Journey…. 1 Started with QuickBooks 2 Added Excel for analytics 3 Added Act, Goldmine, or Salesforce.com 4 Built a homegrown website 5 Upgraded QuickBooks or added more seats Over time:more money, more resources, more integrations © 2011 Proformative. Proprietary and confidential
  • 8. And Your Business Ends Up in Silos Quote Invoice Customer Service Sales Order Pick & PackSales Finance Support/ Web Order Mgmt Warehouse Manual Homegrown © 2011 Proformative. Proprietary and confidential
  • 9. You May Have Found More Of YourBusiness Buried In Spreadsheets……. Revenue Recurring billing Recognition Financial Shipping and consolidation Fulfillment Budgeting & Management Sales orders reporting Purchase Customer requests information © 2011 Proformative. Proprietary and confidential
  • 10. Often, It’s Due to an Applications “Hairball” © 2011 Proformative. Proprietary and confidential
  • 11. ..or Even Worse, a Hairball of Hairballs Worldwide HQGLOBAL AMERICAS EMEA APACREGIONCOUNTRY Canada USA Brazil France UK Germany Japan Australia China © 2011 Proformative. Proprietary and confidential
  • 12. Beyond Accounting:ERP that Improves Organizational Efficiency Trait Business Benefit Quote to cash integration Reduce cycle time and overhead Procure to pay integration Eliminate spreadsheets Web based T&E Improve employee productivity management Comprehensive audit trail Reduce audit times and improve compliance Self service dashboards Reduce time spent “hunting” & reporting Collaboration and “actionable One view of the customer Improve team collaboration, reduce redundancy © 2011 Proformative. Proprietary and confidential
  • 13. Beyond Accounting:ERP that Supports Global GrowthTrait Business BenefitSupport multi-sub and COAs Manage consolidation times as business growsCountry specific tax and Eliminate need to add ERP toaccounting regulations support local needsAutomated sales tax Calculate sales taxes acrossmanagement channels and geosDrill down from corporate Ensure straight line visibilityto subsidiaries from HQ to geosMulti-language management Ensure you can localize solution to geo needs © 2011 Proformative. Proprietary and confidential
  • 14. Beyond Accounting:ERP that Supports Business FlexibilityTrait Business BenefitComprehensive Integrate with suppliers,web services integration channels, and servicesGraphical workflow Empower line of business tomanagement automate business processManaged customization layer Ensure that customizations will not “version lock” applicationMobile and anywhere access Support the distributed organizationIndustry functionality and “Future proof” applicationecosystem © 2011 Proformative. Proprietary and confidential
  • 15. What To Avoid:Typical IT Budget Allocation Typical ERP Version9% Innovation Current 66% on old 91% versions 15 Maintenance Source: ERP in SME, Aug 2010 © 2011 Proformative. Proprietary and confidential
  • 16. Why Consider Cloud ERP?Cloud ERP enables finance to: Stay abreast of latest accounting changes Scale a distributed finance organization SAS 70 Type II controls included Leverage a modern easier to integrate solution Typically get more tightly integrated analytics Automated upgrades and eliminate “wasted” maintenance Reallocate IT budget from maintenance to innovation 16
  • 17. Four ERP Trends for 20111 Cloud-based deployment gaining traction2 Mobile technology empowering business people3 Online user experiences advancing via rich clients, business intelligence, and collaboration4 Business process modeling (BPM) embedded in and around applications Trends 2011: ERP Customers Demand Better Flexibility, Cost Transparency, And Mobility Paul Hamerman, January 11, 2011 © 2011 Proformative. Proprietary and confidential
  • 18. General Tips for Success• Assign a cross functional team for selection and implementation• Assign business benefit goals and measure• Consider how to broaden ERP usage across business and departments• Ensure you’ll get clear visibility into ERP data• Plan for a distributed, mobile organization © 2011 Proformative. Proprietary and confidential
  • 19. Let’s Check Back In:Our processes are We are able to We’re able to grow integrated and consolidate any in a controlled and automatic, and number of entities scalable way our analysis is instantly, and can without worrying based on acquire or create about our systemsdependable, up- new subsidiaries or having to add to-the-minute and bring them up new staff members information to speed very just to keep up quickly with our volume © 2011 Proformative. Proprietary and confidential
  • 20. Thank You© 2011 Proformative. Proprietary and confidential
  • 21. THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALSUpgrading your Accounting along with your SystemsPrepare for the FutureErnie Humphrey, VP Educational Programs, Proformative
  • 22. Upgrade your Accounting• Take the Opportunity!• Improve Controls• Redesign Processes• Deepen Analytical Capabilities• Set the Foundation © 2011 Proformative. Proprietary and confidential
  • 23. Upgrade your Accounting• Accounting Controls• Segregation of Duties• Routings and Approvals• Purchasing Budget Control• Inventory and WIP• Cash Flow control © 2011 Proformative. Proprietary and confidential
  • 24. Upgrade your Accounting• Process Automation• Front end Systems Integration• Revenue Recognition• Multicurrency revaluations• Go Paperless – Scanned documents – EDI – Electronic banking © 2011 Proformative. Proprietary and confidential
  • 25. Upgrade your Accounting• Implement Analytical Structure• Product Lines• Projects & Programs• Departments• Divisions• Locations © 2011 Proformative. Proprietary and confidential
  • 26. Upgrade your Accounting• Anticipate Growth and Change• Divisional Expansion• Multicompany Consolidation – Normalize accounting• Enable Manager Decision Making © 2011 Proformative. Proprietary and confidential
  • 27. Upgrade your Accounting• Other Considerations• On Premise vs. Hosted vs. SaaS – Cash Position – Use of Financing – Existing IT resources – Consider your Business – Now & Future• Consultative Resources• Future Accounting Pronouncements © 2011 Proformative. Proprietary and confidential
  • 28. THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS Thank You
  • 29. THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALSPlanning and Reporting beyondQuickBooks and ExcelCharlie Hill, Northeast Regional Manager,Adaptive Planning
  • 30. Agenda• Planning and reporting: what should I be thinking about?• When to move beyond Excel and QuickBooks• What to look for in a planning and reporting solution © 2011 Proformative. Proprietary and confidential
  • 31. Planning and Reporting: moving beyondhistorical financial statementsPlanning and Reporting:A closed loop management process – Establish a baseline set of goals translated into financial and operational targets (budget) – Assess company progress against goals by comparing your budget with historical transactional details – Revise your outlook (forecast) based on new information (including actuals) – Understand the implications of actions/decisions by assessing multiple potential future scenarios to – Align management and staff around a common set of goals and supporting actions © 2011 Proformative. Proprietary and confidential
  • 32. Planning and reporting levels of maturityMaturity Data Participants Integration Frequency Reporting Process Expert Metrics / KPIs All Mgrs with KPI Connector- Other Rolling Forecasts XBRL Collaborative Impact Ops Data Online Dialogue Operational Data Scenario Analysis SEC Reporting Import Other Ops BS / Cash Flow Functional Mgrs Data Alerting Monthly Forecasts Dashboards Inc. Statement Connector GL Board Packs Workflow Divisional Mgr Data Quarterly Forecast Sales Mgmt Reporting Capital Import GL Data Semi-Annual Senior Execs Annotations Export AP to GL Revision Variance Reports Personnel EmailBeginner Expense Finance No integration Annual Budget Budget Summary © 2011 Proformative. Proprietary and confidential
  • 33. Many Problems from Spreadsheets  Spreadsheets are the primary planning technology for 66% of Primary Technology companies What primary technology do you use to manage  Usage is common for all company your budgeting and planning processes? sizes, including 55% of those with 1,000+ employees Spreadsheets 66%  Spreadsheet cause many problems: Budgeting Application 21%  Errors  Consolidation challenges ERP System 10%  Rigid templates Other, please 3%  Distribution challenges specify  Version control problemsSource: Oct 2009 BPM Forum & Adaptive Planning Survey  Reporting and variance analysis challenges  And more… time, waste, poor return on investment? © 2011 Proformative. Proprietary and confidential
  • 34. Moving beyond Excel and QuickBooks• Need to improve accountability and execution• Need to collaborate with a distributed or growing team• Need to evaluate future outcomes on a routine basis• Need to spend less time managing data, more time analyzing and managing business• Need to create timely & accurate reports, including variance reporting and drill down capabilities• Need to report on both operational and financial data• Need to quickly integrate historical data with forecasts © 2011 Proformative. Proprietary and confidential
  • 35. What to look for in a planning andreporting solution• Web-based (rapidly implement, collaborate anywhere)• Excel-like interface (easy to use, easy to implement)• Customizable data entry templates (easy to obtain user buy-in)• Simple version creation (enables forecasting and scenarios)• Personnel and Revenue planning to suit your business (enables planning appropriately suited for your business model)• Multi-dimensional data modeling (easily tag and analyze your data)• Single complete solution, not pieces to be integrated (no IT resources needed to implement or manage the application)• Integration to GL and other data sources (simplify reporting and analysis)• Drag & drop reporting builder (easy for all users to build reports)• Software as a Service (finance in control) © 2011 Proformative. Proprietary and confidential
  • 36. SaaS Delivers Significant Advantages On-Premise Model SaaS Model High upfront cost  Low annual subscriptions Need new HW and SW  Do not need new HW or SW Implement in months/years  Implement in weeks IT support needed (initial &  No IT involvement required ongoing) High risk: big upfront purchase  Low risk: can cancel at any time High overall TCO  Low overall TCO New releases every 1 – 2 years  New releases 2 – 3X per year Time consuming, costly  Automatic upgrades upgrades Designed for techie users  Designed for business users © 2011 Proformative. Proprietary and confidential
  • 37. On Demand: Reducing Costs, ImprovingPerformance by Investing in Business – Written in “The End of Software” – “more than 75% of the IT budget is spent just maintaining and running existing systems and software infrastructure” – “customers can spend up to four times the cost of their software license per year to own and manage their applications” – Written in the Wall Street Journal, 2002 – “the initial purchase is usually only 5% of the total cost of owning and maintaining a program” © 2011 Proformative. Proprietary and confidential
  • 38. Tremendous TCO Advantage16% Lower TCO SaaS vs. 35% - 55% Lower TCO vs. On-Premise Dynamics GP & CRM33% Lower TCO ByD vs. On- 50% Lower TCO SaaS vs. On- Premise Premise © 2011 Proformative. Proprietary and confidential
  • 39. 67% Lower Total Cost of Ownership forSaaS vs. On-Premise BPM Solutions 4-Year Total Cost of Ownership for SaaS vs. On- Premise BPM Applications (10 Full Users & 15 Review Users) $350,000 $300,000 $250,000 Training $200,000 Implement & Support $150,000 Application Software $100,000 $50,000 IT Infrastructure $- SaaS On-PremiseSource: Hurwitz & Associates, 2010.SaaS solution analyzed: Adaptive Planning. On-premise solutions analyzed: Clarity Systems, Longview, and Prophix. © 2011 Proformative. Proprietary and confidential
  • 40. Democratization… SOHO SMB Enterprise World Class Performance/Scalability for Any Size business – Same Features – Same Performance – Same Scalability – Same Reliability – Same Global Solution © 2011 Proformative. Proprietary and confidential
  • 41. Thank You© 2011 Proformative. Proprietary and confidential
  • 42. Panel Discussion and Q&A© 2011 Proformative. Proprietary and confidential
  • 43. We will send you a follow-up survey and wouldappreciate your feedback.Please join us at www.proformative.com to ask anyadditional questions you may have and to continuethis conversation with your peers and the expertsyou heard from today. Proformative Contact Ernie Humphrey VP, Educational Programs ehumphrey@proformative.com © 2011 Proformative. Proprietary and confidential
  • 44. Event Sponsors © 2011 Proformative. Proprietary and confidential

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