The Hidden Costs Behind Large ERPs

Large ERP

The Hidden Costs Behind Large ERPs

The insurance industry’s profitability has been turbulent in the last few years due to inflation and extreme weather-related losses. And with tariff changes, costs are expected to rise even more. 

Private insurers are under increasing pressure to streamline operations and reduce costs to adapt to the rapid pace of change and prevent further impacting customers through premium pricing hikes and pulling back high-risk coverage.

For many, this means reevaluating their technology stack, including costly enterprise resource planning (ERP) systems. By identifying areas with bloated overhead, like legacy ERP software, businesses can uncover significant savings opportunities while improving efficiency and agility.

Hidden (Overhead) Costs

Here’s a breakdown of the most common types of overhead associated with large ERP systems:

  • Lower Value of Licensing & Subscription Fees
    After the initial purchase cost, enterprise-level ERPs often have high annual maintenance fees and cloud subscription fees.  The hidden cost lies in how these products are packaged.  Enterprise-level ERPs are typically licensed in large bundles, forcing customers to pay for modules, features, and functions they may not use/need.

    For example, an insurance company with a bundle license may pay for functions they don’t need, like supply chain management, timekeeping, and project management.
  • Increased Staffing & IT Infrastructure
    On-premise ERPs require servers, backup systems, and additional storage.  Legacy ERPs may also need the support of a full-time dedicated IT team to administer and maintain the system. When upgrades are needed, it can take months, be deferred, and sometimes, be put off altogether. This creates additional cost, but more importantly, higher risk for companies.
  • Lower Efficiency, Higher Risk
    Companies on legacy systems are likely to be running on unsupported versions or with outdated technology.  As a result, companies are paying full fare but don’t have access to the most modern features available.

     

    Outdated technology creates compliance risks, which add to operating risk and costs with human capital or manual workaround processes.

Sample Cost for a Mid-Sized Insurance Company

A mid-sized insurance company using a large ERP could easily spend upward of $250,000* implementing a new system, around $100,000* per year in licensing and support, and additional resources and time for IT and training over the ERP’s lifecycle.

Contracts typically require a 3-5 year commitment, further increasing the total cost of ownership.

*Estimates are based on market averages and may vary.

A Solution Built for the Insurance Industry

Flexi—built for insurance—offers faster deployment, lower total cost of ownership (TCO), and focused accounting functionality, without the added weight of unnecessary modules.

For mid-sized insurers, Flexi’s full-featured software includes everything you expect in a comprehensive, enterprise platform, including a powerful general ledger and financial suite, financial suite, workflow automation, and reporting and analytics tools. 

Compared to a large ERP, Flexi delivers:

  • Higher ROI on subscription fees
  • Lower cost of operations
  • Reduced compliance risk

These savings stem from lower licensing fees, reduced implementation and maintenance costs. Flexi also offers the flexibility to scale with the business growth.

See how industry giant Mercury Insurance Group found success and value after switching to Flexi.

Single-Provider vs. Best-of-Breed ERP: Which is the Right Solution For You?

Best of Breed ERP

Single-Provider vs. Best-of-Breed ERP: Which is the Right Solution For You?

When it comes to choosing the right ERP system, financial services companies face an important decision: go with a single-provider platform that offers everything under one roof, or a best-of-breed approach that selects the top solution for each specific need.

Both strategies have their advantages and potential drawbacks. 

For mid-sized financial services companies, the choice often comes down to priorities like integration, flexibility, scalability, and long-term support.

Single-Provider ERP: The Benefit of Integration

One of the main benefits of using a single-vendor ERP is the integration across all business functions. With a full suite of solutions under one ERP, businesses have the convenience of using a single platform for all core functions. 

However, convenience can come at a cost, especially in an evolving financial landscape. 

Some challenges that institutions may face with getting a single-provider ERP include:

  • Vendor Lock-In: Companies deeply embedded in one ecosystem can struggle with flexibility, particularly during mergers and acquisitions.
  • Dependency: Fintech conglomerates that offer a full suite of solutions may sunset core systems and shift directions without warning. This is the risk of relying solely on a single vendor.
  • Solutions Not Created Equal: When a single vendor offers multiple applications, it is often through assembling multiple solutions and multiple layers of acquisitions.  The result is that the competency of each solution may not give you the level of results you are looking for. What you’re left with is a system that could excel in one area but fall short in another. 
  • Lackluster Support: When problems arise, getting effective support is critical. Multiple rounds of acquisition can create high turnover in the support department, and support personnel are often trained across several applications. Having highly specialized support teams can solve a customer’s issues faster and with more efficiency.

Best-of-Breed ERP: Focused Innovation

Focused solution = focused innovation.

With a best-of-breed ERP, you pick and choose the individual solution that is right for each practice area. 

This approach offers:

  • Specialization: A bespoke ERP with hand-picked solutions means a specialized solution for each area, including Accounting, EPM, Compliance, and HR/payroll. This results in deeper functionality, stronger performance, and a better user experience.
  • Flexibility: A best-of-breed approach enables organizations greater flexibility and personalization as they build out their tech stack strategy. It is easier to replace or upgrade components without overhauling the entire ecosystem.
  • Future-Proofing: Instead of being locked into a single system that may eventually become discontinued, a best-of-breed approach gives your institution the flexibility to adapt and grow with your business.

Which Solution is Right for You?

Ultimately, there’s no universal answer. 

A single-provider ERP can offer the ease of integration and centralized management. A best-of-breed ERP delivers flexibility and the ability to tailor each solution to a specific function.

No matter which approach you choose, a reliable provider is key.

Business people using Flexi Why Flexi? 

Flexi has supported financial institutions for over 30 years, delivering powerful, dependable accounting tools built specifically for the needs of banks and credit unions. 

Flexi’s software is tailored to the operational, compliance, and reporting demands while ensuring a seamless and efficient process.

Contact us for a free demo.

Why Modern Accounting Systems Are Essential for the Future of Banking M&A

banking M&A

Why Modern Accounting Systems Are Essential for the Future of Banking M&A

Since 2018, credit unions have been increasingly active in acquiring banks, peaking in 2024 with 22 credit union acquisitions, up from the previous high of 16 in 2022.

While the overall number of credit union mergers has decreased compared to the previous decade, the total assets acquired in mergers increased by 58% in 2024, compared to 2023.

What’s driving the future of M&A in banking?

  1. Regulatory Uncertainty – Stricter compliance requirements make it costlier for smaller banks and credit unions to do business. For many financial institutions, a more ambitious M&A agenda may be easier to pursue under the new federal administration, which is expected to relaxing banking regulations.
  2. Fintech Disruption – Traditional banks are merging to enhance digital banking services and remain competitive.
  3. Operational Cost Reduction – Consolidation allows financial institutions to share infrastructure, reduce redundancies, and improve profitability.
  4. Economic Uncertainty – Institutions are seeking stability through strategic partnerships and acquisitions to navigate fluctuating interest rates and economic shifts.

Two buildings merging together to symbolize M&A activity

Mergers & Acquisitions Trends in Banking & Credit Unions

  • In 2024, 215 deals that were greater than $30M in value were announced, compared to 151 deals of the same value in 2023.
  • Among the top 50 U.S. banks, there were 3x as many banks open to acquiring or actively pursuing acquisitions in 2024 vs. 2023.
  • A recent survey found that 65% of financial institutions view M&A as a strategic priority for expanding market reach and enhancing digital offerings.

Source: S&P Market Intelligence

While M&A can bring growth opportunities, it also introduces significant financial complexities. 

Accounting Challenges When Merging Financial Institutions 

  • Financial Data Consolidation – Combining different accounting systems, reporting structures and financial records is complex and time-consuming.
  • Regulatory Compliance & Reporting – Banks and credit unions must be able to adapt to changing reporting requirements, which become more intricate during mergers.
  • Accounting Policy Differences – Variations in revenue recognition, loan classifications, and other accounting methods must be reconciled to ensure financial accuracy.
  • System Integration Issues – Legacy accounting software may lack the flexibility to integrate with a newly merged entity’s operations.

A modern accounting system designed specifically for banks and credit unions can streamline the consolidation process and ensure compliance. 

How a Modern Accounting System Simplifies M&A Integration

  1. Seamless Financial Data Integration

A cloud-based accounting system designed for financial institutions can automatically consolidate financial records, ensuring real-time accuracy and reducing manual data entry errors.

  1. Automated Regulatory Compliance

Regulatory frameworks such as CECL, FAPP, and FDIC reporting require precision. A modern accounting system ensures automated compliance, reducing risk during audits and regulatory reviews.

  1. Real-Time Financial Visibility

M&A success depends on data-driven decision-making. A robust accounting platform provides real-time dashboards, financial forecasting, and analytics to support growth strategies.

  1. Scalability for Future Growth

As banks and credit unions continue to grow, a scalable accounting system accommodates additional branches, loan portfolios, and regulatory changes without disruptions.

  1. Streamlined Operational Efficiency

By eliminating redundant processes, reducing manual reconciliation, and enhancing financial reporting, merged institutions can operate more smoothly from day one.

See how Idaho Central Credit Union (ICCU) automated its accounting process and saw a significant impact on productivity.

The complexity of merging financial entities demands a robust accounting framework to effectively manage financial reporting, credit risk assessments, and tax implications. 

As the banking and credit union landscape continues to evolve, institutions that invest in a modern accounting system that is purpose-built for their unique business challenges will be better prepared for future mergers, acquisitions, and regulatory shifts.

California Wildfires: Why Insurance Companies Need Strong Financial Controls More Than Ever

fair plans housing insurance

California Wildfires: Why Insurance Companies Need Strong Financial Controls More Than Ever

California has faced devastating wildfires over the years, with the most recent Los Angeles wildfires in January 2025 causing widespread destruction, loss of life, and financial losses for residents. These disasters have placed immense pressure on the state’s insurance system, increasing the need for accurate financial reporting and compliance.

Established in 1968, the California FAIR Plan serves as an “insurer of last resort,” providing coverage to homeowners who cannot obtain policies through private insurers. Over the years, demand for FAIR Plan coverage has surged as wildfires have grown more frequent and severe.

Impact of 2025 Los Angeles Wildfires on the Insurance Industry

The L.A. wildfires have placed considerable pressure on California’s insurance system, affecting both the FAIR Plan and private insurers. 

The FAIR Plan has received nearly 5,000 claims for damages caused by the Palisades and Eaton Fires and paid more than $1.2 billion to policyholders. A handful of major California insurers have reported losses of over $1 billion from the devastating loss.

The financial strain on the FAIR Plan is likely to have ripple effects across the insurance market:

  • Private insurers will be charged an assessment according to their market share
  • Up to $500 million of the assessment may be passed on to policyholders
  • The situation may accelerate the exit of private insurers from high-risk areas

This disaster has prompted calls for further reforms to stabilize California’s insurance market, with state regulators approving the FAIR Plan’s levying of a $1 billion assessment on private member insurers to offset losses from the wildfires. 

Pressures on FAIR Plans in Other States

The California wildfires have highlighted the critical need for strong planning to ensure financial stability and consumer confidence, not just for California insurers, but for FAIR Plans and private insurers across the country. 

As insurers of last resort, FAIR Plans and similar state programs have been disproportionately affected by the growing incidence of weather-related catastrophe events across the country, including wildfires but also hurricanes, floods, and other severe weather events. 

Louisiana saw a tripling of homeowners in its state program during the three years following Hurricane Laura in 2020. Florida’s state program grew rapidly after 2018, eventually implementing a “depopulation program” to transfer policies to private insurers.

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Today, FAIR Plans cover 32 states, including Washington, D.C., and Puerto Rico, with Colorado being the latest state to add a FAIR Plan. 

Some states (including Alabama, Florida, Louisiana, Mississippi, North Carolina, South Carolina, and Texas) have Beach and Windstorm plans – equivalent to FAIR Plans – to provide insurance coverage in designated areas against hurricanes and other severe windstorms.

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Why Strong Accounting Systems Are Critical

The fallout from the L.A. wildfires will increase the pressures faced by finance and accounting teams at California insurers. With possible new state regulations, there is more need than ever for insurance companies to have robust audit trail functionalities that meet regulatory requirements.

Insurance companies are being scrutinized and must adhere to strict financial reporting requirements set by the California Department of Insurance (CDI). 

The increase in severe weather events across the U.S. will continue to create financial challenges for FAIR Plans and private insurers. Strong financial systems and controls will be essential to help insurers react to these market dislocations and attendant regulatory changes. 

Accounting technology has a major role to play: 

  • enabling insurers to gain better visibility across their businesses
  • make data-driven decisions
  • operate more nimbly in response to market pressures
  • achieve compliance with evolving regulations to avoid penalties or operational restrictions.

With increased calls for FAIR Plan and private insurer transparency, robust accounting systems that produce audit-ready financial statements will be key to public trust, particularly as insurers seek to justify rate adjustments and other business changes in response to new market realities.      

Flexi has been a technology innovator in the insurance industry for more than 30 years.

Its general ledger and comprehensive accounting platform are purpose-built for insurance companies with special features that simplify statutory reporting, including:

  • A flexible COA that enables easy reporting by line of business, state, accident year, treaty, and more;
  • Fully auditable Statutory Accounting books that meet regulatory requirements;
  • Powerful allocation functionality that accurately categorizes transactions for statutory compliance;
  • Seamless integration with leading NAIC-approved statutory filing software, and the industry’s top Policy, Billing, and Claims systems.

See how Flexi’s software can streamline accounting for your business.

How Accounting Software Plays a Crucial Role in Transforming Back-Office Systems for Banks and Credit Unions

How Accounting Software Plays a Crucial Role in Transforming Back-Office Systems for Banks and Credit Unions

In today’s fast-paced financial landscape, the back office is no longer just a support function—it’s the backbone of every strategic decision, regulatory compliance effort, and customer interaction. Yet many accounting leaders in banks and credit unions are navigating this dynamic environment with outdated systems that hinder efficiency, accuracy, and scalability.

Modernizing your back-office systems isn’t just a technology upgrade; it’s a business imperative that transforms how your organization operates, enabling real-time insights, enhanced compliance, and seamless integration with the front lines of customer service. The question isn’t if you should modernize—it’s how quickly you can afford to delay.

To drive operational excellence, financial leaders in banks and credit unions need to adopt accounting technologies and strategies that automate routine tasks, improve data accuracy, and provide actionable insights.

Cloud-Based Accounting Systems: The Case for Flexi Accounting Software

Cloud-based accounting systems have revolutionized how financial teams operate, offering unparalleled flexibility, scalability, and real-time insights. Flexi accounting software for banks and credit unions stands out as an excellent choice due to its robust features tailored to meet the unique needs of financial institutions.

With features like automated reconciliations, flexible reporting, and real-time financial consolidation, Flexi empowers financial teams to streamline their workflows and focus on strategic initiatives instead of manual tasks.

Key Benefits of Flexi Accounting for Banks and Credit Unions:

  • Bank-Specific Functionality: Flexi’s modular design supports multi-entity accounting, workflow automation, compliance with banking regulations, continuous close, and integration with core banking systems.
  • Real-Time Access and Reporting: With Flexi, financial leaders can leverage our advanced report writer to quickly view data any way needed, and access up-to-date financial data from anywhere, enabling faster and more informed decision making.
  • Scalability: As a cloud-based solution, Flexi grows with your organization, whether you’re expanding branches, adding services, or increasing transaction volumes.
  • Built-In Compliance Features: Flexi ensures adherence to regulatory frameworks such as GAAP, IFRS, and industry-specific banking regulations, reducing the risk of penalties and improving audit readiness.
  • Seamless Integration: Flexi integrates with a financial institution’s ecosystem, including core systems like Jack Henry, Fiserv, Finastra, Nymbus, COCC, and more, ensuring a unified flow of data and eliminating silos.
  • Cost Savings: By adopting Flexi, banks and credit unions can reduce dependency on outdated on-premise systems, lowering IT maintenance costs while boosting productivity.

Flexi’s Workflow Automation: Eliminating Manual Tasks and Skyrocketing Productivity

Workflow automation tools are essential for reducing bottlenecks, ensuring compliance, and accelerating financial processes. FlexiWorkflow, the workflow automation component of Flexi’s accounting suite, is designed to automate and optimize financial workflows specifically for banks and credit unions.

Customizable workflows allow financial leaders to design workflows tailored to their institution’s unique processes. Based on the bank’s business rules, our powerful workflow automation software can eliminate time-wasting manual processes and make nearly every part of the business more efficient, such as:

  • Approving or reviewing documents or requests
  • Purchasing and AP
  • Asset management and tracking
  • Employee travel and expense (T&E) management
  • Cross-department collaboration
  • Document compliance
  • Contract management
  • Document generation

FlexiWorkflow significantly reduces manual interventions, speeds up processing times, and minimizes errors by automating repetitive tasks. By freeing up resources, accounting teams can allocate more time to strategic planning and financial analysis.

Why Flexi Is a Game-Changer for Banks and Credit Unions

Flexi accounting software combines the benefits of cloud-based accounting with advanced workflow automation tailored to the specific needs of financial institutions. Its ability to integrate seamlessly with core banking systems, provide real-time insights, and automate key processes makes it an invaluable tool for improving efficiency, reducing costs, and staying competitive in today’s financial landscape.

By adopting Flexi, banks and credit unions can modernize their back office, ensure compliance, and empower their teams with the tools they need to drive growth and innovation. Contact us or schedule a demo to see why banks and credit unions rely on Flexi to drive new levels of productivity.

Why Flexi is the Ideal Accounting Solution for Insurance Companies

the ideal solution for insurance companies

Why Flexi is the Ideal Accounting Solution for Insurance Companies

We understand that the accounting software landscape can be overwhelming. One of the first questions we get asked is, “what makes Flexi different from other accounting software providers?”

Flexi stands out from other accounting software providers for many reasons. For the insurance industry specifically, some of our most prominent differentiators are summarized into three categories: our team’s decades of experience with a deep understanding of the insurance industry, our flexible architecture, and our focus on meeting the unique needs of the industries we serve.

In this article, we explore ten examples of how this culminates into the ideal accounting solution for insurance companies.

10 Reasons Flexi is the Ideal Accounting Solution for Insurance Companies

 

1) Industry Expertise and Tailored Solutions

Flexi has a long history of serving the insurance industry, understanding its complex financial and regulatory requirements. The software is designed to address industry-specific challenges such as multi-entity financial management, detailed reporting, e.g., policy-level, and compliance with strict regulatory frameworks within the insurance industry.

2) Seamless Multi-Entity Management

Insurance companies often operate with multiple entities, subsidiaries, or branches. Flexi excels in managing multi-entity accounting and other complex financial structures, allowing companies to consolidate data effortlessly, standardize processes, and streamline reporting across entities, without the need for extensive manual effort.

3) Integration with Insurance Systems

Flexi integrates seamlessly with core insurance platforms such as policy and claims management systems. This connectivity eliminates data silos, reduces manual data entry, and improves the accuracy and efficiency of financial operations.

4) Flexibility and Customization

As its name suggests, Flexi is highly flexible. The platform allows insurance companies to customize workflows, approval processes, and reporting structures to match their unique operational needs. This adaptability ensures the software evolves with our customers’ growth and changing requirements.

5) Built for Regulatory Compliance

Compliance is non-negotiable in the insurance industry. Flexi simplifies the process with features like automated regulatory reporting, audit-ready trails, and support for complex calculations required by IFRS 17, GAAP, and other standards. This reduces the risk of non-compliance and ensures timely and accurate submissions.

6) Robust Reporting and Real-Time Insights

Flexi’s advanced reporting and analytics tools provide real-time financial insights, empowering CFOs to make informed decisions. With additional features like drill-down capabilities, insurance companies gain actionable intelligence to optimize financial performance.

7) Cloud-Based and Scalable

Flexi offers cloud-based solutions that are scalable to accommodate the growth of insurance companies of all sizes. Its cloud infrastructure ensures secure access to financial data from anywhere, enabling remote work while maintaining high performance and reliability.

8) Streamlined Audit Process

Audit readiness is critical for insurance companies. Flexi provides robust audit trails, transparent financial records, and easy access to documentation, making the audit process more efficient and less disruptive to day-to-day operations.

9) Proven Track Record and Trusted by Leaders

Flexi’s software is trusted by some of the most trusted brands in the financial services industry. Its proven track record in helping companies achieve operational efficiency, compliance, and security makes it a reliable partner for financial management.

10) Superior Customer Support

Flexi prides itself on offering personalized and responsive customer support. Insurance companies value the ability to work with a team that genuinely enjoys working with customers, understands their industry and provides tailored solutions to their challenges.

 

Why Choose Flexi for Your Insurance Company?

Insurance companies choose Flexi because it offers more than just software; it delivers a comprehensive solution designed to simplify complexity, ensure compliance, and drive efficiency. With Flexi, insurers gain a trusted partner that optimizes their back-end accounting processes so they can focus on their core business of managing risk and serving policyholders.

Learn more about our insurance accounting software and schedule a demo today.

Modernizing Accounting for Banks: Why It’s a Must

Modernizing Accounting for Banks

Modernizing Accounting for Banks: Why It's a Must

As a finance or accounting professional in the banking industry, you are tasked with navigating a complex and highly regulated financial environment. From ensuring compliance with stringent standards to providing timely and accurate financial reporting, your role is pivotal in driving the bank’s success.

However, outdated accounting systems often create inefficiencies and challenges that can hinder your efforts. Modernizing these systems is no longer just a technological upgrade; it’s a strategic imperative.

Here’s why adopting modern bank accounting software is essential for improving efficiency, enhancing compliance, and staying competitive in today’s banking landscape.

Streamlined Operations

Legacy accounting systems often rely on manual processes that can slow down operations and increase the risk of errors. Modern accounting automation software automates these tasks, such as data entry and reconciliations, significantly reducing workload and enabling you to focus on more strategic activities. Real-time data updates ensure you have an accurate financial picture at any moment, facilitating better decision-making and operational agility.

Multi-Entity Accounting Made Simple

For banks operating across multiple branches, subsidiaries, or jurisdictions, managing financial data for multiple entities can be a logistical nightmare with legacy systems. Modern accounting platforms like Flexi simplify multi-entity accounting by consolidating data into a single system while maintaining clear distinctions for reporting purposes. These tools support inter-entity transactions, multi-currency capabilities, and regulatory compliance at both local and global levels, ensuring streamlined operations without sacrificing accuracy.

Strengthened Regulatory Compliance

Banks are subject to an ever-evolving regulatory framework, including standards like CECL (Current Expected Credit Loss) and Sarbanes-Oxley compliance. Keeping up with changing regulations can be overwhelming with outdated tools. Modern accounting platforms are designed with compliance in mind, featuring automated audit trails and advanced reporting tools. This ensures you can meet requirements efficiently and reduce the risk of non-compliance penalties.

Advanced Financial Insights

Outdated systems often lack the advanced reporting and analytical capabilities needed for in-depth, real-time financial reporting. Modern accounting solutions provide these features that save enormous amounts of time while enabling you to quickly optimize resource allocation and align your strategies with the bank’s long-term goals.

Real-Time Close for Faster Decision-Making

In today’s fast-paced financial environment, the ability to close the books in real-time is a game-changer. Real-time close capabilities allow banks to maintain up-to-date financial records, providing instant insights into the bank’s financial health. This agility not only supports faster decision-making but also ensures your bank can respond proactively to emerging trends and challenges. By eliminating the delays associated with traditional month-end closes, real-time systems empower your team to focus on strategy rather than reconciliation.

Scalability to Support Growth

As your bank grows, so do the complexities of your financial operations. Legacy systems may struggle to scale, forcing you to rely on disconnected tools or costly customizations. Flexi’s enterprise-strength accounting software is designed to adapt to your evolving needs, offering modular features and seamless integrations with other banking systems. Cloud-based solutions also provide secure access to financial data from anywhere, empowering teams across multiple locations.

Cost Efficiency and ROI

While transitioning to modern accounting software involves an initial investment, the long-term savings are undeniable. Automation reduces manual errors and administrative costs, while real-time reporting minimizes delays in decision-making. Additionally, many platforms operate on subscription-based models, allowing you to manage expenses more predictably.

Enhanced Customer Experience

Efficient financial management has a direct impact on the services you provide to your clients. By modernizing your accounting processes, you can allocate resources to initiatives that improve customer satisfaction, such as faster loan approvals and personalized financial solutions. Staying technologically agile also helps your bank remain competitive against fintech disruptors and digital-first competitors.

The Urgency to Modernize

The banking industry is at the forefront of digital transformation. From open banking initiatives to the rise of digital currencies, staying competitive requires adopting technologies that enable agility and innovation. Modern accounting systems are a foundational element of this transformation, equipping your bank to meet the demands of a digital-first economy.

Choosing the Right Partner

Selecting the right accounting solution is critical. Look for a provider with a deep understanding of the banking industry and a proven track record of delivering robust, user-friendly solutions. Key features to prioritize include workflow automation (specific to your banking industry), advanced reporting tools, built-in audit and compliance features, and seamless integration into your core bank system. A successful implementation track record and reliable customer support are also essential for ensuring a smooth transition.

At Flexi, we specialize in helping banks modernize their accounting systems with accounting solutions tailored to the industry’s unique needs. Our platform is designed to streamline your operations, enhance compliance, and deliver the insights you need to drive growth.

 

Ready to take the next step in modernizing your bank’s accounting systems? Schedule a demo today to learn how we can support your transformation.

The Importance of Modernizing Accounting for Credit Unions

modernizing accounting for credit unions

The Importance of Modernizing Accounting for Credit Unions

As an accounting professional in the credit union industry, you understand the unique challenges that come with managing finances for member-centric organizations. From maintaining regulatory compliance to providing accurate financial reporting, your role is integral to the health of your credit union. Yet, many credit unions are still reliant on outdated accounting systems that make these critical tasks unnecessarily cumbersome. It doesn’t have to be this way.

Modern accounting software tailored for credit unions is no longer a luxury—it’s a necessity. Here’s why upgrading your accounting processes is vital for efficiency, accuracy, and member satisfaction.

Streamlined Processes

Traditional accounting systems often require manual data entry and reconciliation, leading to inefficiencies and a greater risk of errors. Modern software, like Flexi’s credit union accounting software, automates these processes, freeing up your time to focus on strategic financial planning rather than routine administrative tasks. Automation also ensures that data is updated across all accounting modules in real time, providing you with a clear and accurate financial picture at any given moment.

Enhanced Regulatory Compliance

Credit unions operate in a heavily regulated environment. Staying compliant with evolving standards such as CECL (Current Expected Credit Loss) or the latest IRS and NCUA requirements can be daunting with outdated tools. Modern accounting platforms come equipped with built-in compliance features, helping you meet regulatory obligations effortlessly. With features in our software like built-in audit trails and advanced reporting capabilities, you can feel confident during audits and examinations.

Improved Financial Insights

Outdated systems often limit your ability to analyze and report on financial data. Modern accounting software provides advanced reporting capabilities that allow you to instantly slice-and-dice data and gain deeper insights into your credit union’s financial performance. This empowers you to make data-driven decisions that align with your credit union’s strategic goals and member needs.

Scalability and Flexibility

As your credit union grows, so do its accounting needs. Legacy systems may not have the flexibility to scale with your organization, forcing you to invest in costly workarounds or multiple disconnected tools. Flexi’s enterprise-strength accounting software is designed to grow with you, offering modular features and integrations that adapt to your evolving needs. Cloud-based platforms, in particular, provide added flexibility to access financial data securely from anywhere, facilitating remote work and multi-branch operations.

Cost Efficiency

While transitioning to modern software may seem like a significant investment, the total cost of ownership (TCO) for Flexi’s software is actually quite attractive. And by automating repetitive tasks that reduce the risk of costly errors and cuts down on labor-intensive processes, the long-term cost savings can be substantial. Additionally, many modern platforms offer subscription-based pricing, allowing you to manage costs more effectively.

Elevating Member Experience

At the heart of every credit union is a commitment to its members. Efficient financial management directly impacts the quality of services you can provide. By modernizing your accounting processes, you can allocate more resources to member-facing initiatives and ensure that your credit union remains competitive in today’s financial landscape.

Why Now Is the Time to Modernize

The financial services industry is undergoing rapid technological transformation, and credit unions must keep pace to remain relevant. With increasing competition from fintech companies and digital banks, adopting modern accounting software is no longer optional. It’s the key to staying agile and meeting the expectations of a tech-savvy membership base.

Partner with the Right Software Provider

Choosing the right accounting solution is crucial. Look for a provider that understands the unique needs of credit unions and offers features like real-time data access, integrated compliance tools, and automation features that streamline processes. Reliable customer support is also essential to ensure a smooth transition and ongoing success.

At Flexi, we specialize in empowering credit unions with cutting-edge accounting solutions designed to make your job easier and your credit union stronger. By modernizing your accounting processes, you’re not just upgrading software—you’re investing in the future of your credit union.

 

Ready to explore how modern accounting software can transform your operations? Request a demo today for a personalized consultation and see why credit unions trust Flexi.

Multi-Company Accounting: Top Challenges Every Finance Leader Needs to Conquer

multi company accounting

Multi-Company Accounting: Top Challenges Every Finance Leader Needs to Conquer

Multi-company accounting refers to the process of managing the financial records, transactions, and reporting for multiple legal entities or businesses within a single parent organization or across a group of companies. It allows organizations to consolidate their financial activities across multiple companies or subsidiaries while maintaining separate books for each entity.

For finance leaders, managing multi-company accounting presents several complex challenges. These arise due to the need for consistent and accurate financial reporting across multiple legal entities or subsidiaries, each potentially operating under different regulatory, currency, or accounting standards. Ten of the top challenges faced by CFOs in multi-company accounting are summarized in this article.

Multi-Company Accounting Challenges

1. Consolidation Complexity

Consolidating financials from multiple entities can be complex, especially when different subsidiaries use different accounting systems, currencies, or follow varied regulatory standards.

Delays in consolidation can hinder timely reporting, and any errors in consolidation can lead to inaccurate financial statements or compliance issues.

To prevent such delays, it is important to have accounting software like Flexi’s, which is designed to easily consolidate real-time financial statements for an unlimited number of entities, even if different currencies or accounting systems are involved.

2. Intercompany Transactions & Reconciliation

Managing and reconciling intercompany transactions between multiple subsidiaries is one of the most tedious tasks. The risk of duplication or errors in accounting for these transactions can cause discrepancies in the consolidated financials.

Failure to accurately reconcile intercompany accounts can lead to overstated or understated financial results, affecting decisions and reporting accuracy.

Flexi’s multi-company accounting software streamlines this process. Transactions can be automatically posted across multiple entities in a single screen, ensuring books for both “due to” and “due from” are always in balance.​

3. Regulatory Compliance

Each entity within a corporate structure may be subject to different tax laws, regulations, and financial reporting standards depending on the country or region they operate in.

Ensuring compliance with local and international laws while consolidating financial reports across borders can be highly challenging and time-consuming. Non-compliance can lead to fines, penalties, and reputational damage.

An accounting solution designed specifically for multi-company accounting can help companies ensure compliance, while creating a clear audit trail including all transactional data, along with workflow documentation and approvals.

4. Currency Management and Exchange Rate Fluctuations

When companies operate across multiple countries, they deal with multiple currencies. CFOs must handle currency conversions and manage the risks of exchange rate fluctuations.

Currency volatility can affect the accuracy of financial statements and profitability, leading to difficulties in evaluating company performance or creating forecasts.

The multi-currency feature within Flexi’s accounting software addresses this challenge. When global operations are involved, financials can be easily viewed in local currency for field operations, or standardized into a single currency for headquarters purposes.

5. Standardization of Reporting

Ensuring uniform financial reporting across different companies with varying charts of accounts, accounting policies, and practices is difficult.

Inconsistent reporting standards across entities make it hard to generate a cohesive, consolidated financial view. Without standardized reporting, it becomes difficult to analyze performance or comply with corporate governance.

Flexi’s accounting software offers one of the most advanced financial report writers available to simplify multi-company accounting. Real-time data with instant roll-up reporting and consolidations – by single entity or any groupings of any entities – with the power to instantly slice and dice data for any view needed. This extreme flexibility ensures that business decisions are always based on accurate, current data.

6. Data Accuracy and Transparency

Consolidating data from disparate systems and sources while ensuring its accuracy is a significant hurdle. A lack of data visibility across entities can make it difficult to track performance and resolve discrepancies.

Errors in data collection, lack of transparency, or delays in reporting can lead to poor decision-making at the executive level.

Flexi’s suite of accounting solutions is designed to streamline the consolidation of data from disparate systems, and dramatically simplify multi-company accounting.

7. Efficient Use of Technology

Multi-company accounting often requires advanced financial software capable of handling consolidation, multi-currency, and intercompany transactions seamlessly. However, integrating legacy systems across different entities is difficult.

Inadequate or fragmented technology can slow down the accounting process, leading to inefficiencies, errors, and increased operational costs.

Flexi’s ability to integrate with any third-party system streamlines accounting processes and reduces manual work. The resulting accounting automation, and leveraging modern technology, is an important part of any company’s overall ROI.

8. Cost Allocations Across Entities

Allocating costs, overheads, and shared expenses (such as IT or HR costs) across multiple entities in a way that is fair, accurate, and compliant with accounting standards can be complex.

Misallocation of costs can distort the financial performance of individual subsidiaries, affecting profitability analyses and resource distribution.

Flexi’s suite of accounting automation apps provides the ability to automate routine tasks including allocations, as well as other tasks such as journal entries, bank reconciliation, T&E expense management, payment approvals and more. This automation gives your accountants the time to do what they were hired to do: strategize and provide insights into the data to make informed, data-driven business decisions.

Flexi’s advanced multi-company accounting solution is designed to address the unique challenges faced by finance leaders tasked with managing complex accounting structures. With seamless consolidation, automated intercompany reconciliation, and real-time visibility into financial performance across entities, our platform streamlines processes, enhances accuracy, and ensures compliance with global regulations.

By leveraging cutting-edge technology, including multi-currency management and customizable reporting, we empower finance leaders to make informed decisions, reduce operational inefficiencies, and support scalable growth—turning multi-company accounting challenges into opportunities for financial optimization. Schedule a demo and discover how Flexi can greatly simplify your multi-company accounting challenges.

Is Your Accounting Software Support Falling Short?

Here's Why Your Accounting Software Support May Be Falling Short

At Flexi, we have been hearing a lot from our newest customers about the lack of support they are experiencing from their previous accounting software provider. 

This lack of support is becoming an apparent risk when accounting software is only a sliver of the comprehensive products that vendor sells. For example, a large ERP software provider may have a host of reasons why accounting is not the priority.

A shift in strategic focus may necessitate the reallocation of resources to all-encompassing solutions that go beyond accounting to include other business functions like supply chain management, customer relationship management, human resources, and more. As the focus broadens, fewer resources remain to develop and support stand-alone accounting modules.

Another common example occurs when an ERP provider acquires another company or is acquired. The resulting changes in business strategy or product portfolio could lead to reduced focus on accounting software. The combined entity may choose to consolidate or phase out overlapping products.

Outsourcing customer support to less costly but less knowledgeable third parties is also a contributing factor, as is the reliance on under-developed AI technology that cannot tend to personalized questions that go beyond a pre-canned script.

These are just a few examples that are contributing to the noticeable decline in accounting software support that customers are experiencing.

In short, when YOUR priorities are not the same as THEIR priorities, someone suffers. And it’s usually you.

Why Flexi’s Accounting Software Support is Different

At Flexi, our sole focus for over 30 years has been on delivering comprehensive, enterprise-strength accounting software at a price point that is attractive for mid-sized companies. We are not developing and supporting other products, but rather focused on continually innovating our software in ways that further streamline and automate accounting processes. There are three key ingredients that make us special and contribute to our superior customer satisfaction of 96% or better for both our software and support. 

  1. Flexi’s Support: Our support experts have an average tenure of over 10 years and enjoy developing genuine relationships with our customers. In contrast, if you rely on a large enterprise platform, the support is likely outsourced or shared across many product lines. Accounting software is not their priority, and support for this product may be further diluted by staff cuts.

  2. Flexi’s Industry Focus: Unlike enterprise software platforms that fill multiple needs with competing development budgets, Flexi’s software is designed to simplify complex accounting, like multi-entity accounting, and our expertise is highly sought after in complex industries like financial services, banks, credit unions, and insurance. Our software is designed to automate the complex accounting of these industries, and 100% of our R&D budget is dedicated to advancing our accounting automation capabilities.

  3. Flexi’s Fit: Flexi is large enough to build a world-class platform, but small enough to be flexible and care about delivering an exceptional customer experience. Customers say Flexi is “just the right size.”
If you are not getting the level of support you deserve, maybe it’s time to give Flexi a try. Schedule a demo and allow us to show you why our customers love doing business with Flexi.