Cloud based accounting

Cloud-based Accounting:
Next Gen SaaS++ Finance &
Accounting Solution for Small
and Medium Businesses
Executive Summary n Provide audit trails that satisfies regulatory
and compliance requirements
Global market trends have presented fresh n Seamlessly integrates with other
challenges for the CFO that includes optimally applications in the business’ ecosystem
managing and analyzing the business critical
financial information in a cost effective In the past, graduating from premise based
manner. At the same time, the growth of the software solutions meant acquiring a costly
internet has created an increasingly dispersed and complex on-premise software
workforce that must submit key data to a application. These applications entailed a
company’s financial system and ensure real- significant upfront investment, long
time access to the corporate information from deployment cycles, and a cumbersome
anywhere, anytime on a 24 x 7 basis. The business process.
evolved market landscape has created new
Today, a new breed of cloud computing oropportunities for niche as well as managed
platform based solutions have emerged toservice providers to offer innovative cloud-
address business’ real-time financialbased accounting solutions to small and
management needs. This whitepaper aims tomedium business owners with an aim to:
highlight the key trends and benefits
n Automate the end-to-end finance and associated with shifting to cloud-based
accounting life cycle including Order-to- accounting solutions. Further, we will
Cash (O2C), Procure-to-Pay (P2P) and emphasize how service providers can deploy
Record-to-Report (R2R) processes innovative service delivery models to
n Support multiple business entities and on- streamline finance and accounting processes
demand financial consolidation and enjoy benefits beyond mere cost savings.
n Deliver real-time financial and operational
visibility
1Cloud-based Accounting

Introduction - Evolving Business
Requirements
Cloud-based Accounting: The ‘Next Gen’
Accounting Solution for Small Businesses
greater ‘auditability’ and ‘traceability’. These
requirements become increasingly important
when companies consider public offerings or
While companies of all sizes must deploy mergers with publicly held companies.
increasingly sophisticated financial Companies need to be able to make prior
management tools and processes to manage period adjustments and easily view the
their corporate operations, small and mid- change history to appease financial auditors
sized companies are particularly challenged to concerned about today’s stricter regulations.
contend with these issues. Many of these
Savvycompanies are either too young or small to be
companies have adopted Customerable to justify the cost and complexities of
Relationship Management (CRM), Salesforcetraditional mid-market on-premise
Automation (SFA) and other powerfulapplications. The Next Gen accounting model
applications to automate and closely trackneeds to take into account the below factors
their customer interactions. Rather thanwhile devising a solution:
having to input or access important customer
data into or from multiple business
As products and services applications, these companies are seeking to
evolve, they need to upgrade their revenue tie together the applications to give their end-
management and billing processes. Today, users and executives a ‘holistic’ view of their
companies need to comply with increasingly customer relationships.
complex revenue recognition guidelines. Most
Manytraditional mid-market accounting systems are
companies seek to give their workforcenot equipped to handle this increased
remote access to their financial managementcomplexity and many organizations are forced
systems. These companies may also want toto resort to a manual process utilizing Excel
share their financial management reports withspreadsheets to manage their revenue
their suppliers or other business partners. Thisrecognition and billing processes. By
means real-time input into their financialleveraging a cloud-based accounting platform
management system and access to centralizedthat enables you to automate these processes,
business data, in a controlled manner thatcompanies benefit significantly in higher
complies with common business processesfinance productivity, faster close processes,
and practices, and offers robust security toand simplified compliance.
protect sensitive financial data.
Many companies are looking to
gain better real-time visibility into their business
and more effectively distribute a consistent set Cloud-based accounting is similar to
of information to all stakeholders. Often, Excel traditional, on-premises, or self-install
or an expensive 3rd party reporting solution accounting systems, with only the accounting
seems to be the only option. By leveraging a software hosted on remote servers, similar to
financial system that incorporates both a multi- the SaaS (Software as a Service) business
dimensional General Ledger and an model. In cloud computing, users access
embedded reporting and analytics engine, software applications remotely through the
companies can more easily analyze real-time internet or other network via a cloud
consolidated and local financial and application service provider. Cloud-based
operating metrics across their business with the accounting solution frees the business from
ability to drill-down in real time to supporting having to install and maintain software on
details. individual desktop computers. It also allows
employees in other departments, whether inIncreasing regulatory and
remote or branch offices, to access the samecompliance requirements, such as Sarbanes-
data and the same version of the software.Oxley and tightening GAAP guidelines, are
forcing many businesses to demonstrate
Software Integration Capabilities:
Automation of Complex Revenue
Management:
Anywhere / Anytime Access:
Real-Time Financial and Operational
Visibility:
Auditability:

The Economics of Using Cloud Accounting
Systems
Reduced maintenance costs:
Total Cost of Ownership: Cloud vs. On- Better Data Access Control:
Premise
Flexibility and Scalability:
Enhanced data security:
other forms of continuity, cloud-based systems
significantly reduce the risk of theft, damage
or other issues when compared to on-site, on-
Cloud-based accounting solutions offer premise PCs within a central office.
several advantages over traditional on-site,
on-premise software systems. As opposed to Cloud-based
the more traditional systems, such as systems provide software upgrades that are
Quickbooks, Quicken and Peachtree, cloud- automatically installed, which reduces the
based accounting solutions reduce total cost of need to expend IT resources to install, reinstall
ownership (TCO), improve return-on- or upgrade software programs. Additionally,
investment (ROI), and shorten payback time, because cloud-based software is monitored at
all while delivering other advantages in system a data center, any incompatibility issues have
performance, reporting, and employee already been addressed and resolved before
efficiency. a new program is implemented.
Cloud-based
solutions enable users to access data
remotely. This makes it easier for business
When comparing the TCO of the cloud versus partners, such as auditing firms and
on-premise systems, it may initially appear that outsourcing companies, to access relevant
on-premise solutions provide a more cost- data more quickly. Companies also enjoy a
effective solution. For example, the start-up greater degree of immediate control over data
costs, on average, for software licensing is access when employees leave the company.
about 9% of the total IT expense as opposed to Cloud-based Solutions enable companies to
the initial subscription fee of cloud computing provide limited access to the auditors so that
which can be 68% of the total IT expense. they can access the needed information
However, the cost comparison evens out after
a period of time. Cloud-based
systems offer anytime data access from any
With on-premise software solutions, the computer, which optimizes the systems’
majority of the ongoing costs become visible flexibility. As a result of availability real-time
after the system has been implemented. With data, reporting is more flexible and user can
the cloud, the only ongoing costs include access the data remotely to gain visibility for
customization and training which requires a consolidated or multiple entities. Cloud-
less substantial ongoing investment. Because based systems are extremely scalable to suit
of this, businesses can actually save money the needs of an operation. Instead of having to
with the cloud. With lower total costs, Return procure user licenses and suitable hardware
on Investment (ROI) can often exceed triple- that is needed in traditional on-site
digit percentages, while payback timing is installations, the cloud easily accommodates
typically a fraction of on-premise, averaging 3- new users and multiple entities, as well as
6 months. multiple currencies through its central data
center.In addition to reduced on-going expenses, the
cloud offers multiple benefits over on-premise
systems including enhanced data security,
reduced maintenance costs and easier
workforce management.
Keeping sensitive
financial data safe is paramount to any
operation. Because a cloud-based system
resides in a managed data center, the data is
significantly more secure and stable then
comparable on-site solutions. Offering 24-
hour security, multi-tiered redundancy and

Platform based Processing – The
N e x t G e n C l o u d - b a s e d
Accounting Model
transforming the business processes through
“Platform-based Processing”. This involves
building processing capabilities, leveraging
the software platform and making it available
to customers on a “transaction pricing”
Over the last 10 years, the outsourcing of
model. In essence, it is a SaaS++ model
business processes in general and non-core
wherein the Business Processes are delivered
functions like IT, HR, F&A, Procurement and
as a Service, “BPaaS”, leading to a lower Total
others have evolved rapidly and come to be
Cost of Ownership for the end customers.
routinely serviced from delivery centers located
in different continents. The activity that began For service providers, it leads to higher
as “lift and drop” of the processes from high revenues and customer stickiness as illustrated
cost to low cost locations is evolving to below
Leveraging Innovative Cloud-
based Technology to offer
Finance and Accounting
Solution: The ‘Quatrro Solution’
points to the Small and Medium business
market.
Quatrro has developed an innovative
platform based accounting model, built on the
strengths of innovative cloud concepts like
multitenancy and skill based routing that hasTotal Cost of Ownership and Business Value
enabled hundreds and thousands of smallare the key drivers for Small and Medium
businesses, franchisors and franchisees acrossbusinesses while evaluating accounting service
the United States and the rest of the world gainproviders. The challenge lies in providing
access to affordable accounting solutions.state-of-the-art technology platforms like SAP
Highlighted below is a brief outline of ouror Microsoft Dynamics at affordable price
solution:

Applicability: The accounting functions that
we have streamlined through our model
include:
• Accounts Payables (AP)
• Accounts Receivables (AR)
• Reconciliations (Rec)
• General Ledger (GL)
Key Features of the Model:Background: The traditional model of service
delivery necessitates that teams be structured n Teams based on functions – Accounts
and dedicated by client. In the mid-market in Payable, General Ledger, Accounts
which Quatrro operates, this would necessitate Receivables, Reconciliations
the need for multi skilled resources and
n The Quatrro analyst works on the employeeprocess inefficiencies. The gains due to
portal wrapped around the accountingeconomy of scale would be lost. The model
platformwhich Quatrro has developed is laid out as
follows: n Client Portal is platform and client agnostic
n On shore presence to manage client
sensitivities to off shoring
Implementation Methodology: of the process. Usually, the resources are
adequately trained in a particular skill set and
The work is allocated by skill sets (functions) as the process becomes repetitive, it results in
that translates into increase in efficiency. enhanced efficiency. Moreover, these
Allocation via process flow would have allocated functions shorten the turnaround
required the resources to be really efficient as time.
they would need to know the entire value chain

“Client Portal” 4 Can submit documents in various formats
– pdf, jpeg, tiff, excel, word, txt, zip
< The portal platform is an integral part of our < Outputs – Financial Reports*:
platform based accounting solution
4Real time reports< The portal provides a key interface between
4client users and Quatrro back-end Scheduled monthly or period end reports
accounting services team :
4Analytical information
4 Allows client end-users to access key
< Other features:financial reports and participate in
transactional workflows 4 Vendor payment selection & authorization
for processing4 Eliminates the need for users to learn
complex technology 4 Search for documents / images online
from the Documents repository4 Provides flexibility to turn-around client
specific enhancement/workflows in 4 Operational metrics via reports and
minimum time period dashboards
< Other benefits of the portal include:
Operational:
The process via which the data records are
4Helps in standardizing operational entered from the “Client Portal” to the “Master
processes for data & document processing Platform” which sits at the background is
across clients called “On-boarding”. Our “On-boarding”
approach involves multiple business4Helps in monitoring health of the
processes and scenarios pre-configured onprocesses and take corrective actions
the Quatrro platform to meet clientwhen needed
requirements. Thereafter, templates for every
4Reduces client on-boarding and go-live function and process are built to ensure
timelines knowledge transfer. The greatest benefit
achieved by the “On boarding approach”
Technology:
which rests on the automated communication
4 between the “Client Portal” and the “MasterProvides for multi-tenancy architecture
Platform” is the shortening of the time requiredeliminating the need for a fresh install &
to go-live from the earlier 4-6 months to 4-6configuration for every new client
weeks. As a result, the client benefits and their
4 Provides for easy customization of reports profitability can increase at a quicker pace.
4 Architecture allows scalability of
hardware, software and storage
requirements as clients evolve in the future
< The client facing portal allows client users to
access key financial reports and participate
in the transactional workflows, via the
internet.
< Inputs:
4 Ability to submit transactional data via the
portal
4 Alternate modes of communication like
email, efax, ftp also available
“On-boarding”

Derived Benefits from the Skill
based Service Delivery Model:
work activities performed by teams
available for enhanced monitoring
of work activities by supervisors.
n Complete automation on receipt of
ndocuments from clients for data End-to-end data processing of
processing client inputs in an SLA of 4-12
hours, with auto confirmation
n Tr a n s p a r e n t e x c h a n g e o f emails to clients on receipt as well
information between Quatrro and as processing of inputs
the client
n Time saving of 25% per store while
n Auto-tracking of various stages of performing data entry activities
the document
n Time saving of 20% per store by
n Configurable workflows for streaming the entire operational
operations team process and reducing repetitive
activities & manual interventionsn Auto allocation of jobs to a pool of
skill based resources
n Real time Operational metrics of

Summary & Conclusion offer solutions that result in
enhancing business value for SMB
Executives are moving beyond their clients without necessitating upfront
original focus on pure cost- investment. Though this paper, we
reduction objectives to finding ways have endeavored to emphasize the
to achieve company-wide benefits. key value drivers that will shape the
There is a trend towards increasing Next Gen SaaS++ solution and
number of small and medium how leading service providers can
businesses migrating to cloud-based leverage technology to ensure
accounting solutions from on- widespread adoption of cloud-
premise solutions that were the norm based finance and accounting
up until a decade ago. The key for solutions among small businesses
service providers lies in utilizing the
cloud and related technology to
About Quatrro Business Support Services (Quatrro)
Quatrro Business Support Services, one of the leading businesses under the
Quatrro brand, consists of a range of affordable business support services that are
offered through the industry’s first ‘Click and Buy’ interface on the cloud. Built on the
innovative “Internet of Things” concept, the digital portal enables SMB clients to
review, evaluate and buy a bundle of services off-the-shelf on a 24x7 basis.
Quatrro FPO Solutions is the Finance & Accounting business unit under the ‘Quatrro
Business Support Services’ brand. It offers a broad range of platforms and cloud-
based accounting services by leveraging the industry’s leading accounting
platforms designed to create economies of scale resulting in enhanced financial
visibility, lower costs and improved business processes. Its client base includes over
6500+ Small & Medium Businesses across auto parts, restaurant, retail, healthcare
and hospitality industries, that include franchises of some of the legendary and
iconic brands in the nation, as well as not-for-profit organizations.

Cloud based accounting

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