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Intacct: Ready to be a Tech Savvy CFO?
The document discusses the challenges CFOs face in closing the automation gap in finance, highlighting the difference between automated processes and those needed for effective decision-making. It emphasizes that current strategies, such as reliance on spreadsheets and increased hiring, are unsustainable and often lead to errors. The text advises a tech-savvy approach, recommending multi-tenant cloud ERP systems that enhance automation and adaptability to meet changing process needs.
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Intacct: Ready to be a Tech Savvy CFO?
- 1. The Tech-Savvy CFO CLOSINGTHE AUTOMATION GAP IN FINANCE
- 2. 2 Preferred Provider Business Solutions Are YouReady To Be a Tech-Savvy CFO? CFO
- 3. 3 Preferred Provider Business Solutions Are YouReady To Be a Tech-Savvy CFO? CFO Customers Finance Team Executive Team Board
- 4. 4 Preferred Provider Business Solutions CFO Customers Finance TeamExecutive Team Board Are You Ready To Be a Tech-Savvy CFO? Technology
- 5. 5 Preferred Provider Business Solutions What isthe Automation Gap?
- 6. 6 Preferred Provider Business Solutions The LastTime Your Organization Switched to a New System Yesterday… • Identified process requirements and challenges • Evaluated solutions • Result: State-of-the-art solution that meet your needs • Process automation: CHECK!
- 7. 7 Preferred Provider Business Solutions The LastTime Your Organization Switched to a New System Today… • Spreadsheets everywhere • Need for more accounting and operational staff • Increasing time to close the books • Wide gulf between supply and demand for decision- making insights Yesterday… • Identified process requirements and challenges • Evaluated solutions • Result: State-of-the-art solution that meet your needs • Process automation: CHECK!
- 8. 8 Preferred Provider Business Solutions The AutomationGap Defined • The gap between – The processes that your system automates – The processes that your finance team needs to execute
- 9. 9 Preferred Provider Business Solutions The AutomationGap Defined • The gap between – The processes that your system automates – The processes that your finance team needs to execute System Capabilities
- 10. 10 Preferred Provider Business Solutions The AutomationGap Defined • The gap between – The processes that your system automates – The processes that your finance team needs to execute System Capabilities Process Needs
- 11. 11 Preferred Provider Business Solutions The AutomationGap Defined • The gap between – The processes that your system automates – The processes that your finance team needs to execute System Capabilities Process Needs Automation Gap
- 12. 12 Preferred Provider Business Solutions What’s theTech-Savvy way to fill the Automation Gap? Are your strategies for coping with the Automation Gap tenable? How long can you employ them? The 3 Questions You Need to Answer Why is the Automation Gap expanding at an accelerating pace?1 2 3
- 13. 13 Preferred Provider Business Solutions Why isthe Automation Gap expanding at an accelerating pace?1
- 14. 14 Preferred Provider Business Solutions Valuing aBusiness • 8-10 years NPV of income • Asset valuations • Liquidation value • Income capitalization • Income multiple • Rules of thumb Source: Brian Sommer, Vital Analysis, “Introducing the Tech Savvy CFO” Old School
- 15. 15 Preferred Provider Business Solutions • 8-10years NPV of income • Asset valuations • Liquidation value • Income capitalization • Income multiple • Rules of thumb Old School Valuing a Business Source: Brian Sommer, Vital Analysis, “Introducing the Tech Savvy CFO” • Multiple based on CAGR and CAGR decline rate • Billings growth • Improving gross margin/operating margin • Others? New School
- 16. 16 Preferred Provider Business Solutions The IncreasingImportance of Growth as a Valuation Driver Growth Growth
- 17. 17 Preferred Provider Business Solutions Intacct CustomersPursuing Business Strategies to Drive Growth Growth
- 18. 18 Preferred Provider Business Solutions Growth Growth Intacct CustomersPursuing Business Strategies to Drive Growth
- 19. 19 Preferred Provider Business Solutions Growth Growth Intacct CustomersPursuing Business Strategies to Drive Growth
- 20. 20 Preferred Provider Business Solutions Growth Growth Intacct CustomersPursuing Business Strategies to Drive Growth
- 21. MULTI-ENTITY MANAGEMENT Geographic Expansion: TheAutomation Gap
- 22. 22 Preferred Provider Business Solutions Multi-Entity andGlobal Consolidation Challenges Disparate data sources, spreadsheet rollups Complex ownership structures Intercompany eliminations Currency conversions Integrating new locations: COA, lists, workflows, periods Local and consolidated reporting, FX gains and losses Multi-Entity Management
- 23. SERVICES AND REVENUERECOGNITION Diversification: The Automation Gap
- 24. 24 Preferred Provider Business Solutions Revenue RecognitionChallenges Integrating deferred revenue w/GL Visibility into growth of deferred revenues Multi-element arrangements Impact on audits Complexity of methods Service and Revenue Recognition
- 25.
- 26. 26 Preferred Provider Business Solutions Subscription BillingChallenges Subscription Billing Pricing and packaging changes Billing and accounting complexity High volumes in billing and order management
- 27. PERIOD CLOSE Management Information: TheAutomation Gap
- 28. 28 Preferred Provider Business Solutions The Needfor Decision-Making Information Drives the Need for Faster Close… Source: Adra Match Market Survey 90% under pressure to close faster
- 29. 29 Preferred Provider Business Solutions …But theQuality of Information is Compromised by Manual Processes Source: Adra Match Market Survey 90% under pressure to close faster Only 28% trust the reported numbers
- 30. 30 Preferred Provider Business Solutions The Lackof Automation Hinders a Fast Close Manual allocations and accruals for expenses Manual entries for depreciation, amortization, and adjustments Manual revenue recognition Manual consolidations, currency conversions, intercompany eliminations Period Close
- 31. 31 Preferred Provider Business Solutions How longwill our strategies for coping with the Automation Gap work?2
- 32. The Limitations ofCoping… …THROUGH SPREADSHEETS
- 33. 33 Preferred Provider Business Solutions Spreadsheets: Unsustainablefor Filling the Automation Gap • Errors are not a question of “if” but “when” – Goldman Sachs: $100 million error in spreadsheet • Rarely documented • Knowledge of spreadsheet design restricted to single employee • Lack audit trail of changes • Need to be manually backed up • Insecure and difficult to enforce controls on editing Source: Prof. Ray Panko, University of Hawaii , “What We Know About Spreadsheet Errors”
- 34. 34 Preferred Provider Business Solutions Spreadsheets: Unsustainablefor Filling the Automation Gap • Errors are not a question of “if” but “when” – Goldman Sachs: $100 million error in spreadsheet • Rarely documented • Knowledge of spreadsheet design restricted to single employee • Lack audit trail of changes • Need to be manually backed up • Insecure and difficult to enforce controls on editing Source: Prof. Ray Panko, University of Hawaii , “What We Know About Spreadsheet Errors” Although there is great diversity in methodology and detailed results, one key pattern stands out clearly: every study that has attempted to measure errors has found them and has found them in abundance. ” “ End users seldom implement the disciplines long known to be necessary in the development of systems… ” “
- 35. 35 Preferred Provider Business Solutions Spreadsheets: Unsustainablefor Filling the Automation Gap • Errors are not a question of “if” but “when” – Goldman Sachs: $100 million error in spreadsheet • Rarely documented • Knowledge of spreadsheet design restricted to single employee • Lack audit trail of changes • Need to be manually backed up • Insecure and difficult to enforce controls on editing Source: Ventana Research Spreadsheets in Today’s Enterprise Benchmark Research Spreadsheet Maintenance is a Burden* Even casual users must spend a day a month 18.1 15.7 9.2 8.6 All or almost all of the time More than half of the time One-fourth to one- half of the time Less than one- fourth of the time IntensityofUse Hours Per Month
- 36. The Limitations ofCoping… …THROUGH HIRING
- 37. 37 Preferred Provider Business Solutions Hiring: Unsustainablefor Filling the Automation Gap • Talent scarcity • No limit to increasing headcount costs • People management issues • Poor control environment • Organizational skill mix weighted towards clerical vs. strategic System Capabilities Process Needs Automation Gap
- 38. 38 Preferred Provider Business Solutions Hiring: Unsustainablefor Filling the Automation Gap • Talent scarcity • No limit to increasing headcount costs • People management issues • Poor control environment • Organizational skill mix weighted towards clerical vs. strategic System Capabilities Process Needs Automation Gap
- 39. 39 Preferred Provider Business Solutions Growth WithoutHiring IS Possible Company Process Growth Annual Headcount Savings Subscription Billing • 50% annual revenue growth • 30x increase in monthly subscriptions • 150 to 600 employees $200,000 Consolidations Purchasing • Doubling locations to over 40 $140,000 Close • Doubling distribution • 21% annual revenue growth $100,000
- 40. 40 Preferred Provider Business Solutions Growth WithoutHiring IS Possible Company Process Growth Annual Headcount Savings Subscription Billing • 50% annual revenue growth • 30x increase in monthly subscriptions • 150 to 600 employees $200,000 Consolidations Purchasing • Doubling locations to over 40 $140,000 Close • Doubling distribution • 21% annual revenue growth $100,000
- 41. 41 Preferred Provider Business Solutions Growth WithoutHiring IS Possible Company Process Growth Annual Headcount Savings Subscription Billing • 50% annual revenue growth • 30x increase in monthly subscriptions • 150 to 600 employees $200,000 Consolidations Purchasing • Doubling locations to over 40 $140,000 Close • Doubling distribution • 21% annual revenue growth $100,000
- 42. 42 Preferred Provider Business Solutions What isthe Tech-Savvy way to close the Automation Gap?3
- 43. 43 Preferred Provider Business Solutions The LastTime Your Organization Switched to a New System Today… • Spreadsheets everywhere • Need for more accounting and operational staff • Increasing time to close the books • Wide gulf between supply and demand for decision- making insights Yesterday… • Identified process requirements and challenges • Evaluated solutions • Result: State-of-the-art solution that meet your needs • Process automation: CHECK! Is the Automation Gap INEVITABLE?
- 44. 44 Preferred Provider Business Solutions Being TechSavvy About the Automation Gap • Process needs change faster than system capabilities • A new system risks being a stop-gap measure System Capabilities Process Needs Automation Gap
- 45. 45 Preferred Provider Business Solutions Being TechSavvy About the Automation Gap • Process needs change faster than system capabilities • A new system risks being a stop-gap measure • Set the stage for ongoing growth. Look for a system that: – Provides new capabilities frequently – Makes it easy to adopt these new capabilities System Capabilities Process Needs Automation Gap
- 46. The Tech SavvyPath to Closing the Gap
- 47. 47 Preferred Provider Business Solutions Tech-Savvy Tip:Choose Multi-Tenant Cloud ERP For Best Access to New Capabilities On-Premises Multi-Tenant Cloud Who owns and maintains hardware? Customer Vendor How do software upgrades work? Customer pays for updates, performs upgrade work Transparent to customer How often is software updated? Major update every 2-3 years Multiple updates per year
- 48. 48 Preferred Provider Business Solutions Tech-Savvy Tip:Choose Multi-Tenant Cloud ERP For Best Access to New Capabilities On-Premises Multi-Tenant Cloud Who owns and maintains hardware? Customer Vendor How do software upgrades work? Customer pays for updates, performs upgrade work Transparent to customer How often is software updated? Major update every 2-3 years Multiple updates per year Access to Innovation
- 49. 49 Preferred Provider Business Solutions Tech-Savvy Tip:Choose Multi-Tenant Cloud ERP For Best Access to New Capabilities On-Premises Hosted Cloud Multi-Tenant Cloud Who owns and maintains hardware? Customer Vendor Vendor How do software upgrades work? Customer pays for updates, performs upgrade work Customer pays for updates, pays vendor for upgrade work Transparent to customer How often is software updated? Major update every 2-3 years Typically a major update every 2-3 years Multiple updates per year Access to Innovation
- 50. 50 Preferred Provider Business Solutions Beware ofthe Customization Trap • Customization: Required programming or scripting to use new capabilities • Forces dependence on IT in order to reduce automation gaps
- 51. 51 Preferred Provider Business Solutions Beware ofthe Customization Trap • Customization: Required programming or scripting to use new capabilities • Forces dependence on IT in order to reduce automation gaps Out-of-the-box Configured Customized Out-of-the-box CustomizedConfigured Configuration-driven ERP Customization-driven ERP Needed capability
- 52. 52 Preferred Provider Business Solutions Beware ofthe Customization Trap • Customization: Required programming or scripting to use new capabilities • Forces dependence on IT in order to reduce automation gaps Out-of-the-box Configured Customized Out-of-the-box CustomizedConfigured Configuration-driven ERP Customization-driven ERP Needed capability
- 53. 53 Preferred Provider Business Solutions Not AllCloud ERPs are Created Equal Issues with Customization-Driven Solution • Learning curve and IT and consulting costs • Finance team’s time was tied up in managing the solution Key Benefits of Switching to Intacct • Savings of at least $50,000 a year on consulting fees • Eliminated using Excel for cash flow projections and comparison reports • Increased finance productivity and deeper visibility into the business By switching to Intacct, we’ll save at least $50,000 in consulting fees per year, and can more easily integrate other best-in-class products with Intacct to complement the financial system’s functionality, instead of trying to customize a single-vendor suite to do things it wasn’t built for. ”“
- 54. 54 Preferred Provider Business Solutions Tech-Savvy Tip:Choose Configuration-driven ERP Configuration-driven ERP Customization-driven ERP Workflows, reports, entities, fields, etc. How are they created? “Clicks” “Scripts” Empowers Finance Can Finance create on own? Yes No, requires IT Risk Owner Who is responsible for making customizations work through upgrades? Vendor Customer Upgrade Effort How much effort is involved? Minimal Extensive
- 55. 55 Preferred Provider Business Solutions Tech-Savvy Tip:Choose Configuration-driven ERP Configuration-driven ERP Customization-driven ERP Workflows, reports, entities, fields, etc. How are they created? “Clicks” “Scripts” Empowers Finance Can Finance create on own? Yes No, requires IT Risk Owner Who is responsible for making customizations work through upgrades? Vendor Customer Upgrade Effort How much effort is involved? Minimal Extensive
- 56. 56 Preferred Provider Business Solutions Tech-Savvy Tip:Choose Configuration-driven ERP Configuration-driven ERP Customization-driven ERP Workflows, reports, entities, fields, etc. How are they created? “Clicks” “Scripts” Empowers Finance Can Finance create on own? Yes No, requires IT Risk Owner Who is responsible for making customizations work through upgrades? Vendor Customer Upgrade Effort How much effort is involved? Minimal Extensive
- 57. 57 Preferred Provider Business Solutions Tech-Savvy Tip:Choose Configuration-driven ERP Configuration-driven ERP Customization-driven ERP Workflows, reports, entities, fields, etc. How are they created? “Clicks” “Scripts” Empowers Finance Can Finance create on own? Yes No, requires IT Risk Owner Who is responsible for making customizations work through upgrades? Vendor Customer Upgrade Effort How much effort is involved? Minimal Extensive
- 58. 58 Preferred Provider Business Solutions What’s theTech-Savvy way to fill the Automation Gap? Are your strategies for coping with the Automation Gap tenable? How long can you employ them? The 3 Questions We’ve Answered Why is the Automation Gap expanding at an accelerating pace?1 2 3
- 59. 59 Preferred Provider Business Solutions Interested inLearning More? • Try Intacct with a free 30-day trial http://www.intacct.com/trial • Attend an upcoming webinar http://www.intacct.com/webinars • Follow us on Twitter @intacct • Connect with us on Facebook http://www.facebook.com/Intacct • Contact us directly info@intacct.com | 877-437-7765
- 60. 60 Preferred Provider Business Solutions Key Terms •cloud erp • finance software • cloud erp software • cloud financial software • saas accounting software • erp accounting • financial software • cloud erp solutions • online accounting • cloud financials • cloud erp systems • saas metrics • cloud-based erp solutions • cloud accounting software • simply accounting • saas financial software • asc 606 • online erp software • best financial software • best-in-class erp • online finance software • erp accounting software • business financial software • subscription billing • ifrs 15 software • erp software • financial management software