A modern accounting system should automate time-consuming tasks. As companies grow the use of manual processes can drain productivity. Important financial and operating information needed for smart decision-making gets lost in the mountain of paperwork. At a minimum, updating an old system “should automate and streamline core financial management functions.” However, settling on the minimum will soon put the company back in the same position of having to upgrade again.
Intacct’s White Paper: “Essential Features of a Modern Accounting System for Professional and Technical Services Companies” explores the reasons why a firm should seriously consider a robust accounting system as a way to propel their business into a profitable future.
Automated, Flexible Financial Processes
At the heart of all accounting is the general ledger. The general ledger allows the company to manage, analyze, and present financial information in the desired way, without adding complexity to the chart of accounts. A modern accounting system complements the business structure and workflows instead of limiting business flexibility.
A current accounting system will keep a company compliant with Generally Accepted Accounting Principles, Financial Accounting Standards Board regulations, the Sarbanes-Oxley laws, and other regulatory and compliance issues. The system should offer multiple ledgers to handle all areas of company transactions independently without degrading the General Ledger. Additionally, the system should provide all import internal control separation of duties with custom workflow and system access.
“A modern accounting system should provide in-depth, real-time insight into the business.” The final realization of new opportunities is possible through a complete picture of the company’s financial performance. Businesses create insight with “dashboards and reports that automatically combine operating dimensions with economic data.” Built in analytics allow for viewing financial and operation data to custom specification. The contract, headcount and their location, incorporated in the accounting system, become a “statistical book of measures” that provide the ultimate in business metrics.
Project Performance Visibility
While standard accounting deals with the macrocosm of the financials for an entire company, project accounting tracks the financials of individual projects. Project accounting is compelling because it deals with specifics. Project accounting allows companies to get a closer look into their day-to-day financials; to identify how to optimize finances and to determine the trouble areas that could impact margins. The most important part of project management is knowing if a project is on budget and if it is profitable.
The use of project accounting software can eliminate workflow issues such as time-consuming paperwork and miscommunications between departments. At each stage of the project, the system provides revenue reporting and tracking of the budget and profit margins. Project managers become empowered through access to valuable data about the project.
Intacct’s white paper: “Essential Features of a Modern Accounting System for Professional and Technical Services Companies,” provides further validation for using the right system. Project accounting software will provide real-time project status and profound insights into project costs, margins, and profitability, plus individual components of a project such as budgets, estimates, costs, bookings, billing and everything in between.
It will also improve forecast accuracy by providing:
- Project finance visibility through key metrics such as profitability by project and client, project delivery costs and resource utilization.
- Streamlined and automated time and expense tracking to maximize revenue and lessen revenue leakage.
- Accelerated billing cycles to improve cash management by automatically generating invoices from time-sheets, expenses, purchases, and other project-related transactions.
- Automation of complex billing terms such as one-time, recurring, fixed price, or cost-plus.
- Compliance with contract terms, customer billing practices, and the rules of revenue recognition.
- Integration with CRM systems for a clean project to cash process.
- Global business management capabilities.
Access to project accounting software allows the organization to collaborate on finances and budgets across all departments. Management can monitor and reassess projects to become more in line with the financial goals of the company. Smart companies know that they can get the ultimate access to their project accounting software with Intacct Cloud ERP.
“InCloud360 enables companies to accelerate and sustain growth by maximizing the value of their Finance and IT organizations.”
Contact InCloud360 to see how we can help you improve future project management plans.