Are you still struggling to close out your monthly books, not days but weeks later? Worried about compliance? Wondering whether you are leaking money because you aren’t tracking expenses properly?
These are common questions among business owners in all industries. Their companies struggle with financial management, perhaps getting the basics right, but not using enough of the tools at their disposal to track services, manage expenses, or keep up with their invoices.
Let’s take a look at the seven most frequently encountered problems and how the right software, such as Sage Intacct, can help you solve them.
- Taking too long to close the books. According to an infographic from Sage Intacct, just five years ago, 70% of all companies were able to close out their monthly books in just six days. Today, that number has dropped to just 50%. The solution: Use a cloud-based system for financial management. Cloud-based systems that integrate with operations, CRM, and other systems constantly update as new data is received, enabling you to work rapidly with real-time information. Information is also shared across the cloud so you’re never working on stand-alone or siloed information.
- Siloed information: Speaking of siloed information, that’s also a problem in many companies using older computer systems or manually updating their files. Information sits in one department and isn’t shared widely; other departments may not know that data exists or the information has changed. The solution: Cloud-based systems automatically break down siloes by ensuring that data is shared across the organization.
- Spreadsheet loyalty: We’ve seen figures bandied about that state that 80 – 90% of companies still rely on spreadsheets for budgeting, planning and forecasting. Spreadsheets are prone to errors and difficult to share. We’ve all had the experience of opening a spreadsheet, accidentally pressing a key, and seeing the dreaded ! pop up with an error notice. The solution: Switch to business intelligence systems and financial management systems with built-in reporting functions. Reports run directly from your financial system are easier to share, read, and use, and they aren’t prone to that “oops” moment of hitting the wrong key and ruining a carefully crafted formula.
- Not tracking every billable increment. Service companies seem to fare the worst when it comes to tracking all billable services. You may be losing revenue by failing to track additional time spent on projects, for example. The solution: The right software, built for service companies, that can track time, projects, or whatever billable increment you choose. With the right software in place, you’ll find it easier to track all expenses and revenues related to client projects.
- Using old data to make decisions: Blame it on the spreadsheets, but if you have old data, outdated data, or incorrect data, you’ll make poor decisions. If you spend half your day trying to track down accurate information or updated information, that’s half a day wasted. The solution: Cloud systems accurately track, record, and update information so you can make decisions based on real-time data. You won’t need to track down missing data. All the data available is on your dashboard, ready for you to act upon it.
- Lack of compliance: Did you know that one of the most frequently cited reasons for financial restatements is changes in revenue recognition? Rules, regulations, and laws change frequently. It is always challenging to keep up to date with them. There are penalties for non-compliance and no company wants to face that. The solution: Use a cloud-based financial management and accounting system that streamlines compliance.
- Outdated systems: Outdated systems can be a stumbling block for companies seeking growth. Older hardware can’t keep up with new software and older software often has security flaws, fixed in later editions, that cyber criminals and hackers can exploit to commit crimes. Neither keeps up with the current pace of business and may be incompatible with other solutions you want to add to your company’s software suite. The solution: Update your hardware and add cloud-based solutions to the suite of software you currently use. Cloud systems are automatically updated when the developers issue a new release, so you don’t have to worry about manually updating software, buying new versions at the office supply store, or upgrading. They keep systems updated and secure, so you don’t have to think about it. It’s a win for most companies.
Do you see your business in any of these seven common scenarios? If you do, then it’s time to act—with Sage Intacct. Sage Intacct is a cloud-based system. It offers a flexible, scalable ERP that can be expanded to grow with your company. Like all Sage products, it integrates easily with other Sage-based systems, enabling you to build out the exact configuration of products you need.
For more information about Sage Intaact, contact IWI Consulting Group or call 1-866-916-3851.