The right size company for AaaS?

The right size company for AaaS?

What Size Company Benefits the Most from AaaS?

Lavoie has had numerous conversations over the years with companies of all sizes regarding outsourcing or what we refer to as AaaS (Accounting as a Service).  AaaS is a form of outsourcing that combines people, process and technology to help companies gain a strategic advantage.  Some companies think they are too big to outsource any function. Others think they aren’t big enough.  So, what is the right answer?  They are both wrong!

FAO (finance and accounting outsourcing) started nearly 20 years with BP outsourcing its accounting functions to Accenture.  FAO has traditionally been a horizontal offering with a value proposition driven by cost reduction and efficiency gains targeted at large organizations.  So clearly the argument of an organization being too big has its flaws.

Smaller companies have been outsourcing payroll for years so they are already participating in a form of FAO outsourcing.  The next concern we hear from clients is that they will outgrow services.  This is certainly a possibility if you select the wrong partner that does not have the technology or staff to grow with you.  For example, if a company is only providing bookkeeping services, it is certainly likely you would outgrow them.  However, if a strategic partner is selected they will be able to grow with you and help you scale faster.

Large organizations are most often driven to outsourcing for cost reduction. However, as market requirements intensify, FAO solutions are increasingly becoming more industry-specific to provide strategic advantages and not strictly cost reduction.  In smaller companies outsourcing can also reduce costs, but more importantly it enables them access to a full finance and accounting team that leverages economies of scale.   Most SMBs can’t afford to hire an entire F&A department.  So, what often happens is the company may only have a senior level person and they are stuck doing daily tactical activities or they may only have a junior level person and they are responsible for critical items such as cashflow analysis.  Both have obvious weaknesses that prevent a company from reaching its potential.

AaaS solves this dilemma for SMBs.  Companies don’t have to worry about daily tactical items that keep them from focusing on the company.  In addition, they are provided with senior level advisory.  To further maximize efficiencies, Lavoie services also include access to the leading cloud technologies.  By combines people, process and technology we know AaaS can benefit companies of all sizes. info@lavoiepllc.com

Technology Drives Accounting Efficiencies

Technology Drives Accounting Efficiencies

Technology is Transforming Accounting & Finance

The Association of Chartered Certified Accountants (ACCA) recently came out with a report last month showcasing technology’s role in the future of finance. The report concludes that technology can revolutionize finance and accounting.

Technology has played a role in Accounting and Finance for numerous years.  Originally, most software was targeted to large enterprise due to its cost and complexity.  The cloud drastically changed the landscape by bringing enterprise type technologies to the SME market.  Now 80% of CFOs have cloud as part of their technology roadmap.   Here are the benefits technology brings as identified in an ACCA survey of CFOs:

  • Improving efficiency and productivity – 70%
  • Creating new value for a business – 53%
  • Reducing costs – 33%
  • Improving communication internally and externally – 20%
  • Improving quality and standardization – 20%

As technology advances the above numbers will even be higher.  Software companies have already begun to use artificial intelligence and machine learning.

Even though the returns can be great, it is important to be cautious about guaranteeing huge returns or overnight results. The report warns CFOs to use caution about where, when, and how they do or do not implement new technology.

A Technology Roadmap is Key

Technology is not automatically the solution. You need to understand your business goals and processes.  Automating a bad process doesn’t fix anything.  Implementing the wrong technology can be catastrophic and can possibly lead to employee turnover and insurmountable costs.

Companies shouldn’t rush into a decision, but also there is a lot of risk in not embracing technology and being left behind.  The solution is to create a defined technology roadmap.  A technology roadmap is a document which outlines the plan to reach short-term and long-term goals through the use of technology solutions. This type of roadmap typically provides key information which helps organizations make better decisions around technology investments.

Technology roadmaps are often driven by IT.  However, it is important for CFOs and other business executives to be involved.  They are the ones that understand short and long-term goals. Lavoie CPA continuously studies and evaluates technology.  We also have the business acumen to apply the right technology correctly.  Need help with a technology roadmap or software evaluation, give us a call.

Technology Drives CFO Success

Technology Drives CFO Success

Effective Virtual or Fractional CFOs Rely on Technology

Whether your CFO is full-time or fractional, CFOs are a pivotal part of your company leadership, helping you make crucial financial decisions and leading the execution of those decisions.   What makes an effective CFO?   Effective CFO’s excel at:

  • Capitalizing on opportunities while avoiding ricks
  • Strategic modeling driven by accurate data
  • Speed and accuracy for fast decisions
  • Data analysis and insight

No matter how qualified the individual is, without the right technology the job becomes extremely difficult.  Speed and accuracy drive much of their effectiveness and is almost impossible without the right tools in place.

Lavoie CPA recognized this from the start and has always combined  people, processes and technology.  We provide the necessary tools to quickly digest accurate data and be able to make informed decisions to steer the business down the best path.  With dashboards in place, companies can quickly see information in real-time and make changes were needed without waiting days, weeks or even months.  Lavoie CPA also has the expertise to intercept the data and make impactful recommendations.

The core technology we utilize is Sage Intacct.  Sage Intacct is an industry-leading financial management solution designed for the needs of strategic CFOs and their teams.  In addition, we partner with other leading software providers that maximize our clients’ efficiencies.  If you are looking for a virtual or fractional CFO also consider what technologies are being utilized so that you can fully maximize your investment.

 

Accounting the Key Strategic Advantage?

Accounting the Key Strategic Advantage?

Most companies that are thriving view accounting as a strategic function. Companies relying on bookkeeping have a hard time keeping up in today’s changing climate.   Bookkeeping by itself does not provide opportunities.  In a fiercely competitive work environment, companies that properly manage finance can grow and protect themselves from risk.

The opportunities are exciting for the future but it also comes with lots of challenges.  Too many companies are stuck looking into the past because of lack of expertise and or technology.  It is important to understand the past, but essential to have the knowledge and tools to be able to see in real-time and make educated predictions into the future.  As companies grow, hiring and retaining qualified employees can be a difficult task with lots of uncertainty.

A growing number are relying on Accounting as a Service (AaaS) to gain a competitive advantage. AaaS combines tactical and strategic accounting and includes leading software.

Top 3 benefits of Accounting as a Service:

  • Focus on Core
    • Concentrate on growing the business
    • Efficiency gains
    • Eliminate staff turnover complexities
    • Ability to scale as you grow
  • Professional Expertise
    • Qualified controlled/CFO leading accounting and finance department
    • Improve cash flow
    • Reduce financial risk
    • Audit ready at all times
  • Technology
    • Real-time visibility into your business performance
    • Increased security
    • Reduced IT headaches
    • Integration with other applications to eliminate information silos

Forward thinking companies put themselves a head of the curve.  Interested in learning more about Accounting as a Service?   Contact us.

10 Benefits of “Accounting as a Service”

10 Benefits of “Accounting as a Service”

Small and medium-sized businesses (SMBs) are often driven by a passion or cause – not spending hours on accounting and financial management.

SMBs face many financial challenges that affect cash flow including hiring new employees, increasing profits, employee healthcare, growing revenue and properly managing expenses.

Fortunately, technology has changed the game for SMBs. In the last decade, new technologies have enabled SMBs to compete with large enterprises.

Technology is only part of the equation.  Accounting as a Service (AaaS) is a hybrid solution that combines services with software; thus, the client can enjoy the benefits of professional expertise and leading cloud technology. This lays a great foundation, allowing companies to focus on revenue generating activities.  They are able to focus on future growth instead of being stuck analyzing the past.

10 Benefits of  Accounting as a Service

  1. Real-time visibility to your business performance via dashboards
  2. Reduce financial risk
  3. Increase productivity
  4. Be audit ready at all times
  5. Improved process flow and automation
  6. Eliminate staff turnover
  7. Cost savings
  8. Increased security
  9. Reduced IT headaches (upgrades and maintenance)
  10. Integration with your other applications to eliminate information silos

Interested in learning more?