The Rise of Cloud Computing

The Rise of Cloud Computing

by | Apr 6, 2016 | Accounting, Cloud, Intacct, Outsourcing, Small Business

Business Wish They Made the Shift 2 Years Ago

According to Intacct, 89% of firms who have already shifted to cloud-based technology wish that they had made the move two years earlier. The rise of cloud computing is arguably the single most important technology story of the past decade. During that time, countless companies have moved some or all of their IT into cloud environments.

Why?

Because quite simply, cloud computing has a lot of advantages over traditional on-premise accounting. With the cloud, a company can shift a lot of its IT responsibilities to a third-party vendor, while enjoying greater performance. Additionally, the cloud is the less expensive solution, since organizations don’t have to purchase hardware and only pay for the services they use as they go.

Related: 5 Top Benefits of Cloud Technology

In addition to requiring fewer human and financial resources to operate, business leaders are looking to cloud based accounting software solutions because of the deep insights into financial performance that these solutions provide. Today, firms want to look beyond basic measurements and take into account operational metrics as a means to a far better view of how the business as a whole is performing. And to get that level of insight and awareness, more advanced accounting solutions are absolutely essential.

What Metrics Are Businesses Looking to Measure?

Cloud based accounting solutions can keep track of retention rates, customer acquisition costs, customer life time value, fluctuations in monthly recurring revenue and much more, all in addition to accounting basics. With information in hand that is tailored to the specifics of their businesses, leaders have a 360 degree view of the organization and how it is interacting with customers and clients. That depth of information enables more informed decision making and a nimbleness that leads to a serious competitive advantage.

Related: Data-Drive Approaches Guide Businesses

Why Are Businesses Not Making the Shift?

Clearly, vastly superior information is available to companies who use cloud based accounting and financial solutions, but not everyone has made the change.  Why??? Because change is difficult. We fear disrupting our business routine, we are comfortable with Excel and Quickbooks, we don’t want to bother with training, etc. But switching to a cloud based accounting solution really isn’t that difficult.

We have transitioned countless companies, both large and small, to cloud based solutions, and the one thing each transition has had in common is that EVERYONE has exclaimed over the ease of  implementation and staff training. Don’t worry! Go for it! The transition will be over before you know it, and like 89% of companies already utilizing the cloud, you will be wishing you had made the change years ago!

If you’re interested in learning more about financial planning and analysis in the cloud, check out our eBook below!

Time Management and Discipline are Key for Success

Time Management and Discipline are Key for Success

by | Mar 24, 2016 | Accounting, Cloud, Outsourcing

There are a number of important elements that ensure that a company’s accounting efforts are effective and efficient, and support growth and viability. Today, I want to take a closer look at two more key components: time management and discipline. Only by committing to both can a business leader make sure the company’s financial situation stays on track.

Time Matters

Dedicating the appropriate amount of time to various tasks can be challenging as decision makers have a lot on their plates on a daily basis. With so much going on, and with so few hours in the day, it is possible that some things can get pushed to the side. One task, in particular, that many business owners struggle with is managing the accounting work required to run business efficiently. Most owners are not accountants, so they naturally focus on tasks that inspired them to start the business in the first place. Without a good accounting support and detailed information, challenges wind up unaddressed, and can snowball over time.

One of the best ways to avoid looming accounting debacles is to outsource accounting services or set aside a specific time each week to focus solely on accounting matters. When owners have dedicated time each week, they will able to address issues early, before they become big problems. In addition to getting the jump on problems, decision makers will have insight into the firm’s financial situation at all times. This is essential for ensuring that companies take advantage of opportunities as they arise. There is no way for leaders to make the best choices for their organizations if they don’t have a clear and accurate view of their financials.

Related: 3 Ways to Drive Business Growth

Discipline is Needed

Obviously, setting aside time to focus on accounting issues is only effective if business leaders actually stick with that plan. Additionally, owners need to have access to accurate budgets and be able to regularly compare their actual results and make adjustments as circumstances change. Accounting software can make a big difference here. Comprehensive, cloud based accounting solutions allow the business owner and team to do the detailed analysis needed. This in in turn allows them to develop short, medium and long term strategies and track progress over time.

Dedicating the time necessary to manage financial matters, coupled with the discipline to adhere to a schedule and enjoy meaningful access to information, are critical for long term success. The companies that choose to tackle the hard work of time management and financial discipline are always better positioned for success than those that make accounting and financial management a low priority.

Can you think of any other key components that business leaders need to commit to in order to keep track of the financial position of the company?

Maximize Cash Flow with Accounting Practices

Maximize Cash Flow with Accounting Practices

by | Feb 24, 2016 | Accounting, Cashflow, Cloud

Cash flow often doesn’t get the attention it deserves until there is a problem. By then, it might be too late.That is why it is so important for all businesses, especially small and medium sized businesses, to embrace accounting practices that maximize cash flow. With that in mind, here are just a few of the most important accounting best practices for businesses to embrace.

1. Upgrade to Better Accounting Software Solutions

Advances in technology have transformed the way businesses are run. Managing cash flow with Excel is time-consuming, inefficient and inaccurate. Instead, companies should embrace more sophisticated cash solutions that make these processes simpler, faster and more accurate. And it gets even better! Many of the more advanced cloud based accounting software solutions can be accessed remotely or with mobile devices, providing real time visibility into the company’s cash flow at any time and from anywhere. Real time access to this data allows business owners to react proactively to cash flow challenges that could cause big problems down the road.

Related: A Beginner’s Guide to Cloud Computing

2. Implement An Automated Invoice System

Too many businesses continue to experience a significant lag in their invoice process, negatively affecting cash flow. Automating the invoice process with advanced accounting software eliminates this delay, beefing up the cash receipts that fuel new work. It also helps to make sure one person is in charge of the invoice process. A company should dedicate an employee to the invoice process or save personnel expenses by outsourcing the work to an accounting service.

3. Make it Easy for Customers to Pay You!

The easier it is for clients to pay you, the faster they will send you the money they owe. Use accounting software that allows you to accept online payments whenever possible, an option preferred by most customers. Additionally, make sure the accounting software you chose optimizes revenue recognition and automates collections. Doing this allows transparency and control over the receivables process to ultimately maximize cash flow.

4. Maintain a Steady and Healthy Cash Flow

Finally, it is critical for managers looking to maintain a steady, healthy cash flow to plan for the future. Planning ahead is a trait shared by successful businesses, and those companies that operate on a month-by-month basis will inevitably run into problems such as meeting payroll. Consider utilizing accounting software that provides you with the data and analytics that you need to evaluate where you are and use that real time information to plan where you are going.

What are some steps you are taking to maximize your company’s cash flow? Have you had any success with any of the options above?

IT Solutions for Staffing Companies

IT Solutions for Staffing Companies

by | Jan 20, 2016 | Cloud, Outsourcing, Software, Technology

Challenges Staffing Companies Face

When your business grows, you should celebrate, not suffer. Tell that to the finance team that’s trying to make your entry level accounting software and reliance on Excel spreadsheets work in a much more complex environment. Your employees may also be relying on spreadsheets to manage central processes. You may be struggling with disparate operating systems that create multiple versions of information and from multiple locations. This can in turn prevent your employees from having real time visibility into data. Consequently, this also prevents you from having real time insight into your pipeline, cash flow and business trends. Your burgeoning back office may be requiring more and more human and financial resources which you would prefer to deploy elsewhere.

Cloud Based Solution

If these are some of the challenges you are experiencing, you may want to consider utilizing an integrated cloud based management system. As a result, you have access to consistent and centralized data for you business. Most noteworthy, this allows your employees to view and share the same data – wherever they may be located. By connecting your employees throughout your organization to a single source of information, you can dramatically increase efficiency, reduce errors and eliminate redundancies.

Related: 5 Top Benefits of Cloud Technology

Cloud based management tools cost 77% less than onsite IT systems

You should consider switching to a cloud based management system if you have the following needs:

  • Integrate and automate your accounting and financial management systems
  • Access to information by job order/applicant/industry/placement/division in real time
  • Alternative payroll reporting and multi-location reporting
  • Automated A/P with online approval and payment

If you’re interested in learning more about financial planning in the cloud, download your free copy of our eBook below!

4 Steps for Driving Business Agility and Growth

4 Steps for Driving Business Agility and Growth

by | Aug 10, 2015 | Cloud, CFO, ERP, Forecasting, Intacct, Software

Software executives know they need to operate their businesses with more agility because of the pace and volume of change due to innovation and new competitive offerings. C-suite executives grappling with how to turn plans into action faster than ever before need to focus on four steps in order to achieve agility and growth.

1. Rapid Decision Making

Driving business agility requires that leaders have accurate information to make fast, informed decisions. In a recent Sand Hill Group study underwritten by Intacct, CEOs and CFOs ranked “delivering real-time relevant financial information and KPI performance to all stakeholders to drive the business” as most important to their organization. With real-time financial data and KPIs, senior management and board members are in an advantageous position for sound decision making.

Knowing what’s working in the business and what’s not allows leaders to take immediate action, rather than waiting weeks for any real business insight. Having real time KPIs allows an organization to make decisions at the point of need for improved results. The difference between a three-day financial close and a three-week financial close may be the speed advantage a company needs to capitalize on a new opportunity and beat the competition. Outsourced CFOs and finance teams can make companies more agile by speeding up the delivery of accurate, insightful financial data to key stakeholders.

2. Forecasting and Investing

Another process that is nearly as important to software CEOs and CFOs is quick and accurate revenue and expense planning/forecasting. Accurate forecasts rely on a variety of data sources, and CFOs that can unite disparate financial, business and market data in a single ERP application, automatically and in real time, can rapidly deliver holistic forecasts that enable business leaders to stay agile and ahead of the competition.

Let’s say, for example, a CEO wants to forecast the revenue impact of potential product features in order to prioritize engineering and marketing resources. A modern cloud ERP system lets the CFO analyze, in one place:

  • The revenue impact of recent product releases by line of business, by customer, by channel and more, creating a solid foundation for building a forecast
  • The revenue and profitability of new customers by size and vertical to assess the effectiveness of marketing spend

With this depth of visibility into different aspects of the business in a single location, the CFO and CEO are able to make an informed decision on critical investment priorities.

3. Cloud ERP Systems

When it comes to adding and improving financial systems, software business leaders in the Sand Hill Group study indicated their most likely action in the next 12 months would be to implement business process changes, and their second most likely action would be to implement a business intelligence/data analysis solution. Both of these choices make sense for fast-growing companies.

Growth requires change, and business and finance systems that are inflexible or cannot scale at the same pace as the company will not do. By changing business processes, software companies attempt to add speed and reduce wasted efforts, particularly in the finance function, in order to be more agile and responsive.

Likewise, growing companies require business intelligence solutions because they struggle to find the information they need to make informed decisions in a timely manner.

However, there is a way to solve both challenges. Modern cloud ERP systems allow the finance team to efficiently complete the processes they have to do, yet move beyond those processes to the visibility-creating activities that finance teams need to do such as data analysis, forecasting, and operational reporting. This creates a better outcome for the finance team as well as the company than either process change or adding business intelligence alone.

There are real-world examples of finance teams that take advantage of a modern cloud ERP system to streamline processes and perform deeper financial and operational analysis for more accurate forecasting and greater visibility into the entire organization’s performance. A fast-growing U.S. software company implemented a cloud ERP system that delivers segmented reporting and profit and loss statements by multiple dimensions like department, item, customer, vendor, location, project and employee. The system enables the finance team to be more productive by automatically and proactively providing each department with standard reporting for revenue by customer, spending by vendor and costs at a project level.

This allows business leaders to increase agility and optimize their performance by managing against plan and refining the forecast in real time. As a result of this insight, departments can get instant answers without having to ask for key financial information, and executives benefit from deep, real-time insights into the sales pipeline and collections for better forecasts. The added efficiencies from a modern cloud ERP system help a company’s finance team spend less time on transactional bookkeeping and compliance tasks and more time empowering the entire company to focus on strategic, proactive planning, and enhanced execution.

4. Raising New Capital

Software businesses at one point or another need to raise new capital. Surveyed executives in the Sand Hill Group study reported their biggest challenge in this area is modeling future revenue and net income growth. As noted above, accurate forecasts rely on a variety of data sources, and CFOs that can unite disparate financial, business and market data in a single ERP application, automatically and in real time, can rapidly deliver holistic forecasts that demonstrate the full value and potential of the company.

In addition, the study participants rated establishing and enforcing financial processes and controls as their second top challenge in raising new capital. Establishing a robust set of internal controls is something a company has to do in order to demonstrate the effectiveness of the company’s accounting and reporting for a financial statement audit and to earn investor and lender trust.

Proper financial controls ensure no single individual has control over all parts of a financial transaction — and generate the audit trail to prove it. A modern cloud ERP system enables CFOs to deliver error-free financial statements and forecasts built on well-documented, carefully organized and approved transactions that support a realistic forecast and high valuation. Well-documented and enforced financial processes and controls make it easier for software companies to raise capital because of the accurate, trusted financial data provided to investors.

With these four enablers of agility and growth in place, C-suite executives and their boards and investors can be confident that the business will perform to expectations – or even outperform.

—

Four Crucial Enablers for Driving Business Agility and Growth was originally posted on Sandhill.com.

3 Biggest Tech Trends For Small Businesses in 2015

3 Biggest Tech Trends For Small Businesses in 2015

by | Jul 29, 2015 | Cloud, Entrepreneurs, SaaS, Small Business, Software, Technology

Entrepreneurs are business savvy. They are passionate about success and understand what it takes to grow their companies. Keeping their business at status quo is not an option. Staying ahead of the competition often involves significant investment in technology tools to help manage daily business operations.

Inc.com recently wrote about a survey conducted by Palo Alto Software, where 500 small business owners were asked about their technology habits and plans for the future. The top 3 tech trends they found were:

1. They’re Spending More on Tech

According to the survey, 81 percent of respondents said they were planning on investing more in the coming year. Additionally, 48 percent said they would be willing to spend more than $5,000 in the next coming year on technology. It’s safe to say that technology is valuable for businesses and continues to be an investment many are willing to do.

2. They Operate in the Cloud

Small businesses favor the cloud as evident by the survey that found that 37 percent ran over half their business in the cloud. Moreover, 44 percent said they use more than two cloud-based tools for their business operations. The cloud is on the rise due to the many benefits it offers business owners such as real-time data, remote access and system integration.

3. They’re More Mobile Than Ever

Palo Alto Software found that 89 percent of small business owners use their smartphone to run their business. Furthermore, 63 percent said they are planning on increasing their usage of mobile devices in the next year.

Haven’t Embraced Technology Yet? Now is the Time to Reconsider

If you are a business owner that has not embraced technology, my advice is to reconsider. Start by examining your business processes. Think about how technology could free up time and resources. Look at all the non-value add things that you do every day.

What if you could automate the majority of those items?

Imagine if the time and those resources wasted on non-value added activities were focused on growing your organization. Cloud technologies have brought enterprise technology to small businesses. Solutions are affordable and scale as your business grows. In addition to cost savings, newer technologies bring a wealth of new information that enable you to better plan for growth. Instead of focusing on the costs, examine the opportunities that technology will bring your company.