The Hidden Costs Behind Large ERPs

Large ERP

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    Companies on legacy systems are likely to be running on unsupported versions or with outdated technology.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    Outdated technology creates compliance risks, which add to operating risk and costs with human capital or manual workaround processes.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

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.

Flexi Makes List of Top Accounting Software for Small Businesses

Flexi is pleased to announce that it has made SoftwareWorld’s list of top Accounting Software (companies) for Small Businesses. In compiling the list, SoftwareWorld bases their selection criteria on user satisfaction (reviews & ratings), features & customizability, social media buzz, online presence, and other relevant information.

Flexi software has been one of the top accounting software companies in the world delivering impeccable accounting services to leading banks, insurance companies, thousands of hospitals, and global technology providers.

Flexi has been empowering accountants to work efficiently and securely as possible for over 30 years. Flexi has proven itself to be one of the most powerful accounting platforms to simplify complex business processes regardless of business size. Understanding various business requirements, Flexi helps in managing multi-entity books, frustrating audits, and stressful accounts. Equipped with a focus-driven approach that delivers tremendous benefits to manage financial aspects, Flexi Software has become one of the most-used accounting software platforms in the world. Flexi Software is an all-purpose cloud-based accounting software that can prove to be advantageous for the business both from cost standpoint as well as from a productivity point of view.

SoftwareWorld is a platform that showcases software companies and provides a collective review from the leading trusted review sites such as Capterra, G2crowd, and GetApp. SoftwareWorld provides start-up companies as well as prevailing and established businesses, the ability to evaluate their software needs as well as their clients, employees, and customers needs, and then map those needs back to the ratings provided by the SoftwareWorld of software companies that might fit. The website provides a collaborative review by categories of the software according to the individual business’s demands.

For three decades, Flexi’s accounting software has been put to the test in the most challenging environments where performance, security and speed are paramount. We bring a unique combination of a true enterprise solution with the built-in flexibility to adapt to any accounting environment. For more information on how Flexi’s accounting software can help take your organization to the next level of productivity, go here.

Enterprise Accounting Software Market Size Forecast 2020-2027

Flexi is among the leading players covered in The Enterprise Accounting Software Market Report, made available by Market Research Intellect. 

“It is a comprehensive document that provides valuable insights into market elements such as drivers, restraints, competitive landscape, and technology evolution. For better understanding of the market, the report offers a comprehensive analysis of the key segments and future growth prospects. The current COVID-19 pandemic has significantly changed market dynamics and the global economy. The report provides an impact analysis of the pandemic on the entire market. It also provides an analysis of the current and future impact. The report provides a comprehensive analysis of the dynamic changes in trends and requirements due to the COVID-19 pandemic. The report also includes a post-COVID scenario and prospects for future growth.”

 

3 Bold Projections for 2020 Enterprise Accounting Software Market

Excel based financial analytics

Flexi is noted among the key players included in the findings released by HTF MI.

“A new business intelligence report released by HTF MI with title “Global Enterprise Accounting Software Market Report 2020″ is designed covering micro level of analysis by manufacturers and key business segments. The Global Enterprise Accounting Software Market survey analysis offers energetic visions to conclude and study market size, market hopes, and competitive surroundings. The research is derived through primary and secondary statistics sources and it comprises both qualitative and quantitative detailing.”

Learn more and get the report online.

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.

What Is Enterprise Accounting Software and And Why Do You Need It?

Enterprise accounting software is software that allows an organization to keep tabs on financial transactions and data. However, enterprise accounting software goes above and beyond the core accounting processes. Enterprise accounting software comprises modules specific to billing and payroll, accounts receivable, accounts payable, general ledger, and more. Historically it has been a solution that was installed locally, but cloud-based solutions are increasingly available that tailor specific to enterprise business. 

Some of enterprise accounting software’s main functions include:

      Benefits of using enterprise-specific accounting software include automation, visibility, cross-departmental collaboration, and streamlined processes. Enterprise accounting is thus prepared to address the top three concerns of CFOs, including developing talent in the finance organization, providing inputs into enterprise strategy, and measuring/monitoring business performance.

      When shopping for an enterprise accounting software solution, there are many things to consider, including:

      1. Ease of use: A user-friendly interface is paramount when you are switching to a new accounting system that you want your employees to adopt.
      2. Security: Backups, encryption, and user-specific permissions are important, especially for cloud-based enterprise accounting software solutions.
      3. Mobile access: The cloud affords 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. 
      4. Customization: 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. 
      5. 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.

      Flexi for 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. 

       

      6 Important Features Regarding Our Enterprise Accounting Software

      Flexi provides a secure enterprise accounting platform that automates the entire accounting workflow process and delivers ROI in just months.

      With Flexi, you will be afforded a flexible solution–one that won’t keep you stuck and unable to adapt to changing market or business needs.

      Here are the top six important features you need to know about regarding Flexi’s enterprise accounting software.

      1. Continuous Close Capability: Flexi gives you the ability to conduct preliminary ‘soft close’ periods at any time, while the system continues to account for financial transactions in the meantime. You’ll have plenty of time to review and adjust financials in preparation for your hard close deadlines, with complete confidence in the accuracy of your reports.
      2. Automated, Workflow Driven Processes: Flexi’s powerful workflow engine mirrors your accounting processes electronically. Based on your business rules, tasks can be automated – saving time and removing the risk of costly mistakes. You remain in control with a complete archive – all available 24/7 from anywhere, through any device.
      3. Multi-Entity Accounting: Consolidating multiple general ledgers, company/franchise financial statements, and/or multiple currencies can easily consume days or weeks of time. Flexi simplifies even the most complex accounting environments and easily converts all of this disparate data into standardized, board-ready reports almost instantaneously. Learn more about our multi–entity accounting capabilities.
      4. Real-Time Visibility: View, analyze and report real-time financial data, ensuring business decisions are always based on accurate, timely data. With Flexi, you’ll have everything you need at your fingertips to visualize your financial position and make real-time business decisions.
      5. Complete Audit Trail and Compliance Documentation: Flexi provides immediate access to all details behind a transaction. Because each accounting module is part of the same system (including our general ledger), you can easily drill down into all transactions and trace all the way back to the original journal entries, including a visual map of the workflow and approvals.
      6. Streamlined Reporting with our Cloud Financial Report Writer: Flexi’s proprietary cloud financial reporting software will make you look good every time. Easily generate perfectly formatted reports and distribute the right data to the right people even for complex multi-national companies. Reports can be shared in Excel or web-based format and accessed anytime, through any device.

      Learn more about Flexi today
      From deployment options, implementation and setup of business rules, to integrations with other systems, Flexi’s got you covered.

      Learn more or schedule a demo today. Call 800-353-9492.

      Why our Flexible Accounting Software is Built for the Enterprise

      Flexi offers flexible accounting software that is specifically built for the enterprise, making your enterprise-specific quandaries top-of-mind and easily addressed through Flexi solutions.

      Flexi delivers everything an enterprise needs to automate accounting and dramatically improve workflow processes. Its flexibility is built right into the name Flexi.

      Among other features, Flexi accounting software performs the following functions for enterprise accounting:

      • It connects with any GL or sub ledger, resulting in easy consolidations from multiple systems.
      • It can be 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.
      • Flexi’s simple interface allows for user-defined setup of all these parameters and more, without the need for IT programming.

      Flexi’s powerful accounting software was built to simplify the complex processes that accountants face every day. Flexi understands how stressful the period close is, how complicated multi-entity books can be, and how frustrating audits are when accurate reporting is not easily available.

      The team at Flexi scrutinized every step of the process and developed accounting solutions with a sophisticated level of financial intelligence built into every module, designed to simplify every step of the process.

      Flexi’s single platform is designed to allow data to flow seamlessly; integrated from one process to the next. So when it comes time to close the books, you have the data at your fingertips to move easily from soft close, period close, and handle all the auditor’s questions along the way.

      Flexi for the enterprise

      Flexi offers FlexiFinancials, Flexi Workflow, and a number of other applications to help manage your enterprise’s accounting needs.

      FlexiFinancials, the strong core financial management system, has been continually refined for 25+ years based on valuable input from accountants and CFOs. With the added power of the Flexi Workflow worfklow engine, managing the accounting of your business has never been easier. You can even add additional value and further automate by using the expanded eSuite and additional applications.

      To date, Flexi has 20,000+ users. Flexi’s automated software is process-driven and can help you and your business save–and repurpose–your time.

      Learn more about Flexi accounting software solutions, or call 800-353-9492 to set up a demo today.