Robert Reid, CEO of Intacct, was a recent guest on the TechnologyAdvice Expert Interview Series. Hosted by Josh Bland, the series explores a variety of business and technology landscapes through conversations with industry leaders.
In this episode, Rob and Josh discussed why Intacct has chosen to target the mid-market, why the cloud is the future, and why financial management must always be correct.
Check out Rob’s three biggest insights from the conversation.
1. Cloud ERP solutions are now outselling on-premise solutions and CFOs are recognizing that this is the way to go.
They were not embracing the cloud five or eight years ago. It was the VPs of sales who were bringing cloud CRM solutions. But not for a system of record that has to always be right with everything in its place.
Intacct is now seeing that not only are people shying away from on-premise solutions, but for those customers we've talked to, 89 percent say they wish they had moved from on-premise to the cloud two years earlier. And it's because we're able to automate processes better than the old legacy system’s in-client server.
Best-in-class ERP software, like Intacct, is much easier to use, and the return on investment is significantly better than any solutions that come from Microsoft or Sage that typically would serve the mid-market.
2. A lot of organizations are trying to look beyond just GAAP reporting. They want to bring in operational metrics to better understand the overall performance of their business.
Many firms tried to draw this information in and record it in Excel, but then they have inconsistent information—it’s error prone due to formula errors or the person that created the spreadsheet has left the organization.
We can capture the operational data within our system of record and we can watch the dynamics. Basically we do everything from a GAAP perspective. For example, in a software company, the major metrics are:
- the change in monthly recurring revenue
- retention rate or churn
- customer acquisition costs
- customer lifetime value
Those are all extremely important metrics that help you gauge your business, but they're not GAAP.
Intacct is able to capture all their GAAP capabilities, as well as the business metrics, so they have a really good understanding of what's going on. At Intacct, we deliver those metrics through what we call the Intacct Digital Board Book. It allows management to see, in real-time, exactly where the business is and what their key metrics are—or where they might have some risk to the business and they need to hone in and pay attention.
3. It's extremely important to understand the 360-degree view of what's going on in your organization and all the interactions that you're having with your customers.
About eight years ago, Intacct did a deep integration with Salesforce. The Intacct-Salesforce Connector links the best-in-class cloud accounting solution with the best-in-class cloud CRM solution. What do you get when you bring these two powerful solutions together? A full view of every customer, a streamlined quote-to-cash process, and more productive communication between the department that makes the numbers and the department that manages them.
My advice, is to set up the technology that will do things right and correctly all the way through the process and keep down your costs. The old way used to be to have a billing accountant come in and validate every order and then move it on into the finance system in order to invoice. Why not start upfront with setting up all of the structure correctly so the salesperson does it right?
It then moves on into your finance system and people don't have to touch it. And this is right back to how the cloud helps automate processes so much better.
Businesses can then put the resources and their investments into being able to improve customer satisfaction, new engineering efforts, adding additional salespeople to be able to reach out to more customers, etc. This helps them enhance their mission as opposed to just adding costs.