The material appearing in this presentation is for informational purposes only and should not be construed as advice of any kind, including, without limitation, legal, accounting, or investment advice. This information is not intended to create, and receipt does not constitute, a legal relationship, including, but not limited to, an accountant-client relationship. Although this information may have been prepared by professionals, it should not be used as a substitute for professional services. If legal, accounting, investment, or other professional advice is required, the services of a professional should be sought. Assurance, tax, and consulting offered through Moss Adams LLP. Investment advisory offered through Moss Adams Wealth Advisors LLC. Investment banking offered through Moss Adams Capital LLC.
Key Considerations for Choosing a
Cloud-Based Accounting System
Michael Parker
Partner
Enterprise Systems Consulting
Presenter
• Understand the costs and the key activities in place today that hold back your business • Gain insight into the steps and benefits into moving to a Cloud-based solution
• Five business areas that drive success in moving to a Cloud-based solution • Understand next steps in your process (or journey) to the Cloud
Learning Outcomes
How To Prepare For Your Enterprise Software's End of Life
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Quick Question #1
Are you running an Accounting and/or ERP software solution
that is over 10 years old?
K e y C o n si d e ra tio n s fo r C h o o si n g a C lo u d -B a se d A cco u n tin g S yst e m 4 3 4
Quick Question #2
Are you running a cloud-based Accounting and/or ERP
software solution today?
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The Cost
5Examples of pain points include:
➢ Spreadsheets or point solutions are required to manage all finance and operational processes in your business
➢ Inability to create reports and/or access information easily and timely to make key business decisions
➢ Manual steps in standard business processes to “work around” system functionality or to aggregate data from various parts of your business
➢ Increased cost and complexity due to the requirement of integrated multiple point systems
➢ Inability of your system(s) to keep up with the needs of your business
The Cost of Transaction-Only Solutions
Key Considerations for Choosing a Cloud-Based Accounting System
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ASK: How much time and how much money have you already spent on any or all of these scenarios? Has it been happening daily or monthly for years? How many opportunities
have been lost (or poor decisions made) because you couldn’t make real-time decisions?
Moving to a Cloud-based System
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Establish a process to understand the current (& future) state requirements of your business through a fully integrated plan that includes ALL
stakeholders in your business.
Moving to a Cloud-Based ERP System
Key Considerations for Choosing a Cloud-Based Accounting System
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The benefits of a fully integrated, cloud-based enterprise resource planning (ERP) system include:
➢ Better reporting and visibility to support decisions and management of your business
➢ Decreased transaction costs through greater automation on end-to-end business processes
➢ Decreased errors and re-work due to the elimination of manual processes and entry into multiple systems
➢ The ability to effectively scale your business regardless of the type of change and growth
Moving to a Cloud-Based ERP System
Key Considerations for Choosing a Cloud-Based Accounting System
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• Understand your requirements and involve key stakeholders • Plan for where your company is going, not where it’s at today
• Take the time to analyze (and improve) your processes, roles, etc. as well as your technology
• Perform a thorough evaluation based on your needs, relationship with the provider and a proven track record with firms in your industry and of your size (as well as 1-2 sizes larger) • Pick a vendor that can be your partner and a solution that can adapt & grow with you • Be aware of your capacity for change. Just because you can do it doesn’t mean you should • Invest your best and brightest. This is how your company will operate in the future.
Key Considerations for a Transition
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Five Business Areas That Drive
Success
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Consolidated views and up-to-the minute reporting can make the difference between thriving and barely surviving. The areas of reporting that are most improved (and most valued by management) with an ERP system are:
No. 1: Management Reporting
Key Considerations for Choosing a Cloud-Based Accounting System
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➢ Data consolidation – having a single view of
all the data across the various areas of business
➢ Improved Reporting – the need for real-time
(and more detailed) information to make better decisions to manage the business both
strategically and tactically
➢ Information access – the ability to access
information anywhere at any time
Manual steps or having to “integrate” data between systems can lead to many inefficiencies and potential errors. These can cause higher costs to
your organization, bottlenecks in processes, and a lack of agility in managing your overall business. In comparison to transaction-only software, an advanced ERP system
specifically improves:
➢ Information/transactional processing automation costs
➢ Business agility
➢ Customer service
➢ Process and transactions timing
➢ Error/re-work rate
No. 2: Process & Transaction Costs
Key Considerations for Choosing a Cloud-Based Accounting System
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The real-time responsiveness of the online world has set the standard for customer experience.
Customers expect to see real-time stock levels, confirm delivery schedules at the same time they place their order, and have constant access to customer service.
Some warning signs that software may be costing sales:
➢ Low or falling customer service/satisfaction metrics
➢ Inconsistent stock levels (or frequent back orders required)
➢ Access to the needed information by customers and customer-facing team members
➢ Unsuccessful sales campaigns
No. 3: Sales and Customer Experience
Key Considerations for Choosing a Cloud-Based Accounting System
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Your business isn’t the same as it was 5-10 years ago. It won’t be the same 5-10 years in the future. As your business grows, your systems need the ability to change and scale with you. Cloud-based accounting/ERP systems are built to keep pace with your changing business needs. A few areas that benefit include:
➢ Increased pace of innovation in the software (and from the software vendor)
➢ Mobile access for your employees, customers, vendors, etc.
➢ Scalability – able to handle more data, transactions, reports, etc.
➢ Adaptability – An advanced ERP system can handle stronger financial controls, better data management and organization, and support more complex financial processes.
➢ Customization – your system should be able to adapt to your needs, not the other way around
No. 4: Ability to Change and Scale as the Business Grows
Key Considerations for Choosing a Cloud-Based Accounting System
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With the adoption of a cloud-based accounting/ERP system there comes many technology/ IT gains you can take advantage of within your business. A few of the key gains are:
➢ Improved Security
➢ Decreased IT support (improved costs, reduced downtime, fewer errors, etc.)
➢ Improved process and system controls
The latest cloud-based ERP systems are built from the ground up with built-in security (on any device) and controls—operating seamlessly without the overhead of maintaining the technology.
No. 5: Technology / IT Improvement
Key Considerations for Choosing a Cloud-Based Accounting System
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Next Steps
1. Calculate the costs (both hard and soft):
• Look at the pain points in your organization. This should include internal
and external processes, the ability to scale and manage your business effectively, and the ability to meet the demands of your customers and employees.
• Understand your short-term and long-term costs. This includes systems costs, process costs, employee costs, transaction costs, and overall business impact costs.
• Factor in the value improvements to management reporting, transaction processing, business analysis/decision-making, sales and the customer’s experience, business management, and technology architecture/requirements.
2. Evaluate the needs of your business today and in the future.
3. Do not assume that one size fits all. Find out what ERP solution is recommended for your business based on your size, industry, processes, and company objectives.
Next Steps
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4. Pick the right vendor for your business needs and your company
• There is no “RIGHT VENDOR” for everyone. Take the time to find the right solution and the right vendor fit for your business. This includes the software, implementation AND support
• Take the time to thoroughly review your vendor agreements
Next Steps
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Key Considerations for Choosing a Cloud-Based Accounting System 21
Questions?
Michael Parker
[email protected](303) 965-7915
The material appearing in this presentation is for informational purposes only and should not be construed as advice of any kind, including, without limitation, legal, accounting, or investment advice. This information is not intended to create, and receipt does not constitute, a legal relationship, including, but not limited to, an accountant-client relationship. Although this information may have been prepared by professionals, it should not be used as a substitute for professional services. If legal, accounting, investment, or other professional advice is required, the services of a professional should be sought. Assurance, tax, and consulting offered through Moss Adams LLP. Investment advisory offered through Moss Adams Wealth Advisors LLC. Investment banking offered through Moss Adams Capital LLC.
Key Considerations for Choosing a Cloud-Based Accounting System
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