Accounting Software

accounting software automation

Is Financial Automation Gaining Speed in Accounting?

Automation continues to gain speed in the accounting industry. Automation simplifies menial tasks and reduces the risk of manual error, making it a huge boon for accountants as far as accuracy and data integrity. 

While tech greatly improves much of an accountant’s job, with this shift comes fear and uncertainty about job security. Embracing changing technology and learning to finetune strategic and advisory skills situates you to continue to be a player in the accounting sphere even as the ground shifts.

Accounts receivable automation platform Invoiced recently published new research on adopting financial automation technology. The study was fielded in November and December 2019. The study surveyed 459 U.S. finance and accounting professionals. 

Three big takeaways emerged from the report:

The report found that clients are coming to expect CPAs will deliver strategic, consultative services: Clients see that automation offloads many of the menial tasks that have historically been entwined with accounting. With more automation, billable hours would (theoretically) be reduced, leading to an expectation for increased expertise in strategy and consulting (or a reduction in price).

The report suggests that increased pressure will be put on CPAs to be tech-savvy: Businesses are expecting systems to integrate and tightly synchronize, and for CPAs to be aware of the ins and outs of it in order to deliver results and insights to clients.

The report highlights that challenges and opportunities are linked for CPAs as tech grows in accounting: It’s easy to get wrapped up in the pressure of a changing job in a changing industry. Accountants are expected to learn more and be flexible as the industry shifts, but many opportunities are shrouded in that challenge. For starters, taking the time and commitment to developing your tech skills will set you apart. Clients will also find you increasingly indispensable if you’re able to provide tech expertise and strategic and advisory services. And, though it isn’t always the case, increased skills could lead to a fatter paycheck.

Flexi can help you automate your accounting

Flexi’s comprehensive financial management software simplifies and automates the entire accounting workflow process without compromising security. Flexi’s open architecture meets even the most stringent security requirements yet allows data to flow seamlessly with any system, whenever and wherever business needs dictate. Learn more about Flexi today.

Category: Accounting Software

Tags: ,

accounting rules changing

Are Accounting Rule Changes Hurting your Bottom Line?

Adapting to new accounting rules and regulatory changes have caused annual audit fees to continue to rise for U.S. companies. According to a survey by the Financial Education & Research Foundation, the average hourly fees public companies pay for external auditing services has climbed 31 percent over the past decade. Businesses tend to retain external auditors for assurance that their financial statements contain no misstatements. 

Respondents of the survey cited new accounting standards as the primary change in audit fees. Further, complying with new revenue recognition rules that sought to unify the ways in which companies accounted for revenue from sales and services led to the dramatic increase in fees.

Public and private companies, especially financial institutions, are adapting to the new Financial Accounting Standards Board rule that requires them to record expected future losses as soon as loans are issued. And, the “Critical Audit Matters” rule requires independent auditors to disclose the most challenging elements in reviewing companies’ financial statements.

As finance executives go head to head with new accounting complexities, audit fees are expected to continue to rise. In 2018, public companies paid an average of $2.3 million in annual audit fees, and in 2019, an estimated $2.54 million. Audit fees in 2020 are also expected to continue to rise; average audit fees have increased yearly since at least 2011.

Public companies have seen the brunt of these audit fee and audit work increases; private companies and nonprofits typically operate with fixed-fee arrangements. Seventy-three percent of public company respondents noted that the volume of annual audit work performed by external auditors changed in 2018, while only 27 percent of private company respondents and 22 percent of nonprofit respondents reported a change. The communications industry and depository-institution industry reported the biggest increases from the previous year in 2018, and insurance industry paid the most on average in audit fees in 2018, at $6.7 million, though this was 5.4 percent less than the previous year.

Some companies are reducing fees by switching to audit firms or negotiating with their existing firms. According to The Wall Street Journal, a Santa Clara, California-based software company cut its audit fees by more than half by switching to a smaller, local accounting firm (having previously been working with a Big Four firm).

Flexi provides financial management software trusted by world leading brands

Trusted by enterprises for 25+ years, Flexi is among the most experienced accounting software providers in both the cloud and on-premise markets. Organizations of all sizes, particularly those with complex accounting requirements such as multi-entity and intercompany accounting needs, are benefiting from Flexi’s value: rich features, flexible deployment, easily customized, low maintenance and highly rated support, all at an attractive total cost of ownership. Learn more about our financial management software.

Category: Accounting Software

Tags: ,

outsourced accounting

Why Outsourcing your Accounting Might be a Good Idea

You may consider outsourcing your accounting in order to bring in additional expertise you don’t have access to internally, or to save money. Business owners and nonprofit organizations are especially good candidates for outsourced accounting.

Outsourcing your small business accounting

As a business owner, you know you’re edging closer to success when you no longer have the bandwidth to manage your own books. While many business owners know the basics of bookkeeping, in the growth stage the emphasis should be on management accounting. Financial and management reports are a necessity–both for the compliance side of things and when it comes to making business decisions.

Your small business may be ready to explore a new accounting solution if:

  • You’ve reached $1 million in revenue
  • You require more sophisticated financial reports
  • You employ 8-10 people
  • You want your technology to integrate
  • You’re entering an accelerated growth period for your business
  • You’re accepting outside investor capital

Many more small business owners are coming to appreciate and invest in outsourced accounting solutions, especially millennial business owners. Outsourcing is viewed as a competitive, attractive, and safe option that has positive effects on employees.

Outsourcing your nonprofit accounting

Nonprofit folks tend to be passionate about a charitable cause, not management accounting. Nonprofits operate a lot like for-profit businesses with the exception that profits are invested back into the programs. Qualified volunteers can get the job done, but when growth accelerates, the likelihood that they will continue in a volunteer position to manage increasingly complex accounting needs is significantly lessened. 

Your nonprofit organization might be ready to explore a new accounting solution if:

  • Revenues reach $500,000 (mandating audits in many states)
  • You’re acquiring grants and thus require foundation reporting
  • Programs are competing for limited funds and demonstrable ROI is needed
  • The Board of Directors requests more advanced financial reports

Fund accounting is usually beyond the means of a traditional bookkeeper and can stress financial operations. 

 

Category: Accounting Software

Tags: , ,

new-generation-accounting

Why is Innovation in Accounting So Slow?

Accountants have been relying on Microsoft Excel since the 1980s, so you could say innovation in accounting is slow going. It turns out, there are several barriers to innovation that are specific to the accounting and financial services industry. What are they, and what can we do to squash them?

Jody Padar writes on AccountingToday that innovation isn’t typically in accounting’s nature. While accountants are good at mimicking innovation, it often doesn’t stick. Here are some of the top barriers that are keeping innovation in accounting slow. 

Organizational barriers. Accountants and accounting departments often trip up here. We get stuck in a routine that works–for a while–until it becomes a rut. Microsoft Excel is a great example of this. Its usefulness has long since expired, yet many of us continue to cling to it, maybe because of familiarity, or maybe “because we always have.”

Cultural barriers. Accountants by trade tend to be risk averse, but many accountants are (incorrectly) touting themselves as innovative. One of the main tenets of a successful accountant is to be able to analyze what has occurred in the past. Predicting the future? Less easy. Being an innovator requires taking risks, which often lead to missteps. A culture where you can make a mistake, pick yourself up, and try again is a necessity.

Regulatory barriers. Being mindful of regulatory measures and compliance means the opportunity to be creative and innovative can sometimes be non-existent. Much of an accountant’s job is spent understanding and working within the constraints of regulatory updates, so how can we find the time to innovate?

Technological barriers. Cloud software is a boon for the industry, yet many accountants are reluctant. Trading in clunky software for something sleek that automates and takes the guesswork out can feel like a threat, or it can feel too good to be true. Embracing advancing technology will keep you relevant in an industry that desperately needs to remain relevant. 

Market barriers. Following the market keeps you safe, not innovative. Again, risk comes into the equation here. Innovating is about advancing beyond the status quo. To be an innovative leader, you need to suss out what’s limping along and then revise it. 

What next?

Updating your software, improving your communication, enhancing your processes, and updating your pricing structure are all necessary to innovate. And, Padar suggests that a willingness to be agile is critical as well. By applying a goal of agility, you’re setting yourself up for consistent improvement, which keeps you relevant. It’s a chain reaction. 

Innovate with Flexi 

To successfully innovate, you first need to update your software. Flexi is an innovative cloud accounting solution that boasts 1,500 customers and 20,000+ users. Submit your information and get a demo of the Flexi suite today. 

 

Category: Accounting Software, Blog

Tags: ,

Why Process and Workflow Are So Important in Enterprise Accounting

Multi-entity accounting is complex, rendering process and workflow all the more important. Process, workflow, and a solid accounting software solution that is uniquely designed to handle the complex consolidation and reporting needs of multiple companies, divisions, or global entities is a necessity.

Some of the processes that plague enterprise accountants are: consolidations, intercompany postings, acquisitions, currencies, reporting, and auditing. With the right enterprise software, many of the problems that crop up regularly can be addressed swiftly:

  • Consolidations – Software can provide continuous close capabilities to allow the CFO to gain immediate views of consolidated financials and easily move through the soft close and period close processes.
  • Intercompany Postings – Automatically posting a transaction across multiple entities in a single screen ensures books for both “due to” and “due from” are always in balance.
  • Acquisitions – Newly acquired companies can be integrated faster with the right software that can rapidly clone company setups.
  • Currencies – 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.
  • Reporting – Reporting and analysis benefits from real-time visibility with instant roll-up reporting or consolidations.
  • Auditing – With a tightly integrated platform, all transactional data, along with workflow documentation and approvals, are visible with a click of a button – right down to the journal entries.

Consolidating multiple companies, products, and/or divisions can add weeks of time to the financial close process, but it doesn’t have to. Industries that require you to quickly roll up reports or consolidate financials across multiple entities–like financial services, franchises, hospitality, logistics and transportation, property management, and building and construction–can benefit from a multi-entity software overhaul.

Flexi can overhaul your processes and workflows

Flexi’s software was built to perform, saving finance teams hours and weeks of time.

Flexi’s open architecture allows flexibility to choose stand-alone modules as business needs dictate. But enterprises will gain the ultimate speed and power with the entire financial management software platform, uniquely designed to allow financial data to flow securely wherever it is needed, with full integration into your other proprietary or third-party systems.

Submit your information and get a demo of the Flexi suite today. 

Category: Accounting Software, Blog

Tags: ,

accounting-technology-mindset

Is Technology Waiting for the Accounting Industry Mindset to Catch Up?

It’s no secret that the accounting industry hasn’t been the most innovative or the quickest to embrace technology. External barriers are as responsible for this as the industry mindset. While automation and AI are spreading like wildfire in other industries, accountants have been tentative and hesitant about what automation could mean for the future of the industry–and their job security–but additionally, a lack of schooling and training opportunities have left accountants scrambling to keep up.

Cloud Software Solutions

Cloud software solutions have emerged with promises of easing the burden of manual errors caused by spreadsheet accounting. New technology comes with a learning curve and as automation eliminates many of the manual processes accountants are accustomed to, it requires in some cases continuing education to remain relevant in the industry. 

New and innovation technology is yielding a seachange in the industry: there is now an expectation that accountants will not only be skilled and knowledgeable in bookkeeping but will emphasize strategy and advisory services. Accountants are also increasingly expected to specialize in and consult on various software options for their clients. 

The industry has seen an overhaul and though accounting positions are growing in number, there are fewer and fewer in the field that hold these newly minted qualifications. The academic world has not yet kept up, which is a big reason why so few accountants have embraced they new technology: they simply haven’t been trained on it.

Flexi can get you up to speed

Over 25 years ago, the team behind Flexi Software believed that the promise of accounting automation shouldn’t be reserved for Fortune 500 enterprises. Flexi set out to create a world-class platform that would not only offer the robust functionality found in costly Tier One ERP solutions but also offered the things that mattered most in a rapidly changing accounting environment:

  • Real-time performance and the ability to securely handle millions of transactions in real-time
  • Flexibility to grow and adapt to changing business or market needs
  • Openness that would allow easy integration with any system
  • Process-driven design that leveraged technology to automate much of the accounting cycle

That vision remains strong today and Flexi continues its laser focus on developing feature-rich accounting software that is both relevant and a smart value. As a SOC 2 Type I certified provider, Flexi is dedicated to empowering accountants to work as efficiently and securely as possible – today and tomorrow.

Submit your information and get a demo of the Flexi suite today. 

 

Category: Accounting Software, Blog

Tags: ,

wrong accounting entry

What One Wrong Accounting Entry Can Do to An Enterprise Company, And How To Fix It

Multi-entity accounting is complex, and one wrong accounting entry can slow down the whole operation. Multi-entity organizations face such complexities as multiple currencies, global consolidations, decentralized payables, and inter-entity transactions, to name a few of the challenges. What’s more, consolidating multiple companies, products, and/or divisions can add weeks of time to the financial close process to begin with, and that’s when errors aren’t present. 

Fortunately, growth is easy, reports are clear and easy to run, and closing is faster with continuous multi-entity financial consolidation software. To get ahead of the curve, implementing an accounting solution that comes standard with the following features can save many future headaches in multi-entity scenarios.

Consolidations – Continuous close capabilities allow the CFO to gain immediate views of consolidated financials and easily move through the soft close and period close processes.

Intercompany Postings – Automatically posting a transaction across multiple entities in a single screen ensures books for both “due to” and “due from” are always in balance.

Acquisitions – Newly acquired companies can be integrated faster with features that rapidly clone company setups.

Currencies – 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.

Reporting – Reporting and analysis benefits from real-time visibility with instant roll-up reporting or consolidations.

Auditing – Transactional data, along with workflow documentation and approvals, are visible with a click of a button, right down to the journal entries.

Flexi

If your work requires you to quickly roll-up reports or consolidate financials across multiple entities, you owe it to yourself to look into Flexi.

Flexi services multi-entity organizations in such industries as financial services, hospitality, logistics and transportation, property management, and construction.

The ability to greatly simplify multi-entity accounting is just one of the reasons why enterprises have relied on Flexi for over 25 years. Flexi’s accounting software is uniquely designed to handle the complex consolidation and reporting needs when multiple companies, divisions, or global entities are involved.

Flexi will lead you to:

  • Less paper, and no manual errors
  • Faster period close
  • Real-time financial updates, whenever and wherever needed
  • Standardized workflow with built-in approvals
  • Mobile access to financials through any device
  • Visualization tools with real-time visibility of every transaction and complete audit trail

Submit your information and get a demo of the Flexi suite today. 

Category: Accounting Software, Blog

Tags: , ,

Outsource Accounting Partner

Cloud Accounting Set to Experience Highest Growth in Coming Years

Cloud accounting has experienced rapid growth in recent years, with the height of the growth still to come, according to the Cloud Accounting Software Market research report by Market Study Report, LLC. 

The report analyzes pivotal insights regarding market size, competitive spectrum, contender share, consumption trends, and geographical outlook. The report also explores key drivers and challenges, as well as strategies adopted by distinguished players in the industry. 

The report foresees cloud accounting software market growth for an estimated period, as well as delivers in-depth analysis on the industry, including market tendencies, deliverables, market share, current valuation, market size, and profit approximations during that timeline.

Key components of the report include: turnover predictions, recent market trends, industry drivers, key challenges, consumption growth rate, competitive framework, competitive ranking analysis, market concentration rate analysis, market concentration ratio, geographical dissection, latent market competitors, and value growth rate. 

This report puts data and analysis around a widely accepted notion: the cloud is the future. With user-friendly interfaces, automation, ease of access, and high security measures, it’s evident that cloud-based accounting solutions can offer more, and faster, than traditional, locally installed solutions. 

Still, many finance teams are wary, opting for more conservative measures than a cloud-based solution, citing potential security breaches and challenges integrating with an existing general ledger. Even still, the Cloud Accounting Software Market research report points to one truth: the cloud software market is all but slowing down.

Request a sample of the report to dive deeper, and explore similar reports, too.

Flexi can help when you’re ready to make the switch

Making an investment in a new software is a nerve wracking, albeit necessary, step. Flexi draws upon 25+ years to deliver all the benefits of the cloud without compromising security or performance.

Trusted by enterprises for 25+ years, Flexi is among the most experienced accounting software providers in both the cloud and on-premise markets. Organizations of all sizes, particularly those with complex accounting requirements such as multi-entity and intercompany accounting needs, are benefiting from Flexi’s value: rich features, flexible deployment, easily customized, low maintenance, and highly rated support, all at an attractive total cost of ownership. 

Submit your information and get a demo of the Flexi suite today. 

Category: Accounting Software, Blog

Tags: , ,

Good Enterprise Accounting Software

5 Things That Can Derail Enterprise Accounting That Good Software Can Prevent

Keeping tabs on large organizations, multiple entities, different currencies, different systems, and other complex accounting needs can be very challenging. It is difficult to consolidate and analyze all of that information using standard accounting software. Enterprise accounting software serves to address the unique needs of these types of organizations. 

What is Enterprise Accounting Software?

Enterprise accounting software allows an organization to manage transactions and data, going above and beyond core accounting processes by providing modules specific to billing and payroll, accounts receivable, accounts payable, and general ledger. 

Benefits of enterprise software include streamlined processes, automation, cross-departmental collaboration, and visibility. 

Enterprise software is imperative to addressing issues that can derail complex businesses. Being able to easily navigate the “big picture” and run reports aimed to help you analyze your growing business’s needs is critical.

The top 5 things to keep an eye on are:

  1. Integrated modules. Integration is of the utmost important, even if the modules happen to be sold separately. A unified platform will make your business run smoothly and will make visualizing the big picture easier than ever. 
  2. Customization features. Each organization has different needs, so choosing a solution that will give you some wiggle room to specifically tailor your software to your unique needs is extremely important. 
  3. Security. Backups, encryption, and user-specific permissions are important, especially for cloud-based enterprise accounting software solutions.
  4. User-friendliness. A user-friendly interface is integral when you are switching to a new accounting system that you want your employees to adopt.
  5. Access. The cloud provides access to any device with an internet connection, which is ideal for most of today’s business scenarios where employees are remote, traveling, or inclement weather keeps them home. 

Flexi addresses your enterprise needs

Flexi delivers everything that an enterprise needs to automate accounting and dramatically improve workflow processes. Flexi’s finance and accounting software offers extreme flexibility:

  • Connects with any GL or subledger, resulting in easy consolidations from multiple systems
  • Deployed in any way needed: on premise, hosted, cloud, or hybrid environments
  • Workflow processes are easily defined and set up any way needed
  • Reports are easily set up, generated, and shared with anyone who needs them
  • Open SOA architecture is designed to seamlessly integrate with any system
  • Simple interface allows for user-defined setup of all these parameters and more, without the need for IT programming

 

Submit your information and get a demo of the Flexi suite today.

Category: Accounting Software, Blog

Tags: ,

Organization Accounting Software

How To Get Your Organization to Want a New Accounting Software

Implementing new technology solutions is tough, especially in large or high-growth organizations. In larger companies, different divisions often use their own specific platforms for accounting, data reporting, and more, but all the systems need to integrate for the sake of better decision making. They often don’t–or not very well, at least–leading to manual processes and bandaid solutions that quite honestly make everyone’s lives harder.

Before even getting to that point, just getting everyone’s buy-in to embrace change can be challenging in and of itself. It’s not unusual for the switch to take a couple of years, and in the early stages, people hold on tight to old, often manual, processes. Ultimately the switch to the new solution is usually a positive and efficient one, but it takes time. 

How do you get your team’s buy-in? Consider the following:

Define timelines

It can take 9-12 months to roll out a new solution organization-wide. It seems like a long time, and it’s important to set expectations early and often. If you don’t plan for enough time, there will be lots of false starts and delays, which frustrate everybody–especially the executives. Rushing it and getting it wrong is far worse than taking your time to get it right. Make sure everyone is in agreement on that.

Prioritize reporting needs

Virtually every department will have their own reporting needs. Fortunately, most newer solutions offer custom reporting. During the testing phase, make sure stakeholders have the opportunity to test out the reporting feature to ensure that the solution can provide customizable, easily formatted reports that fit the needs of the masses.

Reward small victories

It is no doubt a frustrating process to roll out a new accounting software that changes processes and workflows from the ground up. To keep your team positive and engaged, reward small victories and incentivize along the way. The day to day will feel tedious, but reminding everyone what you’re working towards is a helpful tip. Celebrate wins, even small ones.

Consider ROI

This is arguably the most important point. Lean on your network to prove your chosen solution’s ROI. Your executive team won’t approve a change if it isn’t going to be good for the bottom line. Additionally, the vendor should be proving ROI in the way of case studies and reports. Poke holes and ask questions to get to the heart of the matter.

Choose a solid solution, like Flexi

Flexi may be the biggest, most trusted accounting software company you’ve never heard of – which means its  partner network is doing its job. While Flexi sells directly to customers, its software is also private labeled throughout the world by companies such as Allscripts, StoneRiver, Majesco, and Molina Healthcare (formerly a division of Unisys).

Flexi’s reach is further strengthened through strategic partnerships with BPOs (business process outsourcing), FAOs (finance and accounting outsourcing), and industry-specific technology providers like Acturis. Submit your information and get a demo of the Flexi suite today. 

 

 

 

Category: Accounting Software, Blog

Tags: , ,