While Flexi’s accounting software can be deployed in the cloud or on-premises, there are many benefits of cloud accounting software like Flexicloud®, including those below. These benefits also translate into a lower total cost of ownership (TCO) for companies.

1. Accessibility: Cloud accounting software can be accessed from anywhere with an internet connection, allowing users to work remotely and collaborate with others. This convenient, “always on” access translates to time savings and greater productivity for accountants.

2. Cost-effective: Cloud accounting software typically has lower upfront costs compared to traditional accounting software. Businesses can also save on IT infrastructure and maintenance costs. Cloud customers also avoid the costs of upgrades as new versions and product enhancements are released.

3. Continuous innovation: On-premises accounting software must be regularly updated as new software versions are released, otherwise users will not have access to the latest enhancements that help them work efficiently. Cloud customers avoid this risk and continually have access to all the latest product releases and new features without disruptive installations.

4. Scalability: Cloud accounting software can be easily scaled up or down to meet the changing needs of a business.

5. Real-time data: Cloud accounting software provides real-time data on financial transactions, allowing businesses to make informed decisions quickly.

6. Automation: Many cloud-based accounting systems offer workflow automation features such as those found in FlexiWorkflow (with accounting automation apps like T&E, automated reconciiation, journal entries, invoicing and payment reminders), which save valuable time and reduce errors.

7. Data security: Cloud-based accounting systems typically offer advanced security features and backup options to protect sensitive financial information. Flexicloud customers benefit from the strength and security of Microsoft Azure.

8. Integration: Cloud-based accounting systems can be integrated with other business applications such as HR and payroll, inventory, and other third-party systems, improving overall business efficiency.

Overall, cloud accounting software like Flexicloud offer several benefits for businesses, including increased accessibility, cost savings, scalability, real-time data, automation, data security, and integration with other business applications.

As we continue to witness the ripple effects from the collapse of banks including Silicon Valley Bank, Signature Bank, and First Republic Bank, we can’t help but take on the role of armchair quarterback and wonder how these crises can be prevented in the future.

Since Flexi’s roots are in the financial services industry and dozens of banks have relied on our accounting software over the past 30 years, our focus narrows down to a two-part question: How can finance and accounting reduce risk for banks and other financial institutions? And how can our software help facilitate this?

In the banking industry, accounting departments play a vital role in maintaining the financial health of the institution. One of the most important responsibilities of these departments is to minimize risks associated with financial transactions. Having the right bank accounting software mitigates these risks.

Reducing risks is crucial in safeguarding the institution’s assets, complying with regulatory requirements, and maintaining the trust of customers and investors. In this blog post, we will discuss some of the measures that accounting departments within banks can take to reduce risk, and how having the right accounting software accomplishes these goals.

IMPLEMENT STRONG INTERNAL CONTROLS

Internal controls are policies and procedures designed to safeguard an organization’s assets, ensure the accuracy and completeness of its financial records, and promote operational efficiency.

Banks’ accounting departments should develop and implement strong internal controls that cover all areas of financial transactions, including cash handling, loan processing, and investment management. These controls should be regularly reviewed and updated to address any new risks or changes in the business environment.

How Flexi helps: Flexi’s solution includes enterprise-strength security and an automated workflow process that is customized to reflect the bank’s accounting rules and policies. Any activities outside of those parameters are immediately flagged, with the ability to implement multiple layers of management approval – minimizing the risk that questionable activity goes undetected.

Flexi’s bank accounting software is a highly configurable solution that enables users to configure accounting rules that comply with GAAP, regulatory, and company policies to ensure your financial data is accurate and complete.

CONDUCT REGULAR AUDITS

Audits are an essential tool for identifying weaknesses in internal controls and detecting potential fraud. Accounting departments should conduct regular audits of all financial transactions to ensure compliance with policies and procedures and to identify any areas that require improvement.

Audits should be conducted by independent auditors who have the necessary expertise to detect potential fraud.

How Flexi helps: With built-in audit reports, administrators can trace back every addition, change, or deletion to financial information.  Auditors can also see each person that touched a transaction, such as the originator, reviewer, approver, processor, and adjuster.  

Additionally, Flexi’s powerful Financial Report Writer uses a read-only browser interface instead of Excel.  This prevents anyone from changing financial figures to cover up fraud.

IMPLEMENT FRAUD DETECTION AND PREVENTION MEASURES

Fraud is a significant risk for banks, and accounting departments should implement measures to prevent and detect it. These measures include monitoring suspicious activities, conducting background checks on employees, and implementing a separation of duties within the accounting department.

Accounting departments should also provide regular training to employees to help them recognize and report fraudulent activities.

How Flexi helps: Flexi’s security settings can be configured to require a separation of duties for accounting processes.  For example, users who enter a journal entry can be prevented from being the same person who posts it.

Our accounting workflow automation engine, FlexiWorkflow, also provides fraud prevention features and additional separation of duties. For example, whenever a vendor is created or changed, Flexi’s eVendor system can force the approval of the new vendor information before additional processing occurs, preventing people from creating fraudulent vendors. 

REGULARLY ASSESS RISK

Risk assessment is an ongoing process that helps banks identify potential risks and take steps to mitigate them.

Accounting departments should regularly assess risks associated with financial transactions, such as credit risk, market risk, and operational risk. They should then develop and implement strategies to manage these risks, such as diversifying investments or reducing exposure to risky assets.

How Flexi helps: Flexi provides banks with a financial reporting engine that is the most advanced in the industry. Reports and dashboards provide insight into potential financial risk areas, allowing finance departments to provide strategic advice to management with accurate, real-time information.

In conclusion, with the right accounting software, the accounting department within a bank plays a critical role in reducing risks associated with financial transactions. By implementing strong internal controls, conducting regular audits, implementing fraud detection and prevention measures, maintaining strong relationships with regulators, and regularly assessing risk, accounting departments can help banks maintain their financial health and reputation while providing excellent service to customers and investors. By requesting a personalized demo, our team can show you how Flexi software works to reduce risk for your bank.

For companies with a single entity, accounting is very straightforward. Information is collected, transactions are recorded, financial information is reported, and decisions are made based on that information.

However, in multi-entity companies, accounting is much more complex. When multiple subsidiaries, operations, or locations are involved, the ability to consolidate all the information and create financials for each node of the hierarchy is a very time-consuming process.

Accountants immersed in these multi-entity accounting environments typically have two things on their wish list: greater efficiency, and better reporting. Their current processes involve tedious, manual entries and correcting errors that result.

USE CASE EXAMPLE: INTERCOMPANY ELIMINATIONS

As an example, let’s imagine that a company has two separate entities on different systems. But there are many expenses that are shared between these entities, such as Internet services.

The $5,000 Internet bill is received and must be allocated 50% to each company.

Transactions must be recorded to allocate $2,500 to Company A, $2,500 to Company B, and then account for the intercompany adjustments between the companies. That is four separate transactions that must be recorded for this one simple example.

In reality, accountants in multi-entity environments may be capturing hundreds or thousands of these transactions every month through a process that is typically highly manual, time-consuming, and prone to errors. The pains are magnified further when the number of entities reach double digits and beyond.

In sharp contrast, if the accounting team in this use case scenario were using Flexi’s accounting software, only one entry would be required. This is because Flexi automates multi-entity accounting in unique ways that result in big savings for our customers. Less entries mean less errors, resulting in cleaner data, and providing real-time reconciliation.

THE FLEXI DIFFERENCE: AUTOMATING MULTI-ENTITY ACCOUNTING

Most accounting software was designed for a single entity. Additional functionality may have been added as multi-entity needs surfaced throughout the years. It’s a little like altering a piece of clothing to reflect the changing trends over the years. It just never quite works right.

Flexi is unique. From our very beginning over 30 years ago, the core of our accounting software was built for multi-entity accounting. This functionality is ingrained in our system, right down to the data structures.

The built-in functionality delivers powerful automation for multi-entity accounting. Time-saving highlights include:

• Automated consolidation of financial data for an unlimited number of entities, even if multiple GL systems are involved.
• Automated intercompany eliminations.
• Automated conversion of multiple currencies.
• Automated, real-time reporting and analytics that enables the ability to see performance across all entities, drill down to view transaction details, slice and dice data any way needed – all from one screen.

These are just some of the powerful features that make Flexi’s accounting software an outstanding choice for multi-entity companies.

Schedule a personalized demo to see how Flexi can automate multi-entity accounting for your company.