Higher Growth, Not Hire Staff

THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS

Marc Linden, CFO, Intacct

Higher Growth, Not Hire Staff:Using Cloud Financials to Grow Without Hiring

© 2013 Proformative. Proprietary and confidential

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Learning Objectives

After participating in this event you will be able to:• Discover how to power global growth without growing

finance headcount

• Learn how to institute reporting and controls for going public

• Discover how to eliminate duplicate and manual processes

• Understand how to reduce IT costs and increase security with world-class infrastructure, operations and support


Marc Linden, CFO, Intacct



What Does Finance Do?

FinanceProfessional

What I Think I Do

What My Mom Thinks I Do

What I Really Do

What My Friends Think I Do

What the Rest of the Company

Thinks I Do

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• Is hiring the right response to growth?

• Addressing key finance challenges ingrowth environments– Going global– Going public– Scaling IT infrastructure

• Growth at Meetup

• Eliminating low value activity in the organization– Manual reporting– Redundant data entry– Manual financial processes– Manual business processes

Agenda

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Organic growth

Increased complexity

• New offerings

• New business entities

• Multiple currencies

• New geographies

• Acquisitions

• New GMs that want their consolidated view

• Tax optimization

Drivers for Finance and Accounting Hiring

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Software International Inc.USD

Software Development

Israel(ILS)

Software Development

India(INR)

Software Sales

UK(GBP)

Software Sales Europe(EUR)

Software US

(USD)

Buddy Software

(USD)(acquisition)

SoftwareJapan KK

51% ownership(Yen)


• No limit to increasing headcount costs

• People management issues

• Poor control environment

• Organizational skill mix weightedtowards clerical

The Risks of Hiring in Response to Growth

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A Better Alternative: Cloud Financials


Agenda





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© 2013 Proformative. Proprietary and confidential10

Power Global Growth

Mobile workforce management software company

• Rapid growth in field staff

• Operations in US, Brazil, Germany, Poland, and UK

• Manual processes weighing down staff

– Reporting on profitability by customer, project

– Reviewing and processing expenses

– Order processing


Power Global Growth

• Scaled the business without scaling finance

• Tripled revenues in three years

• Consistent data across company and no manual data entry from quote to cash

• Superior visibility into employee expenses

• Dashboards for global executives to monitor performance

• Avg. Annual Benefit: $300K, ROI: 532%

Project Accounting

Cloud Technology

Procure-to-Pay Inventory Management

Business IntegrationQuote-to-Cash

Expense Management

Period Close

Consolidation

Financial andManagement Reporting

Revenue Management

“ ”As a growth company people were

learning new behaviors and responsibilities. Intacct helped us to

grow and manage that.- Jim Bokar, Controller

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Reporting and Controls for Going Public

Software provider to global property and casualty insurers

• IPO in 2012

• Need for accurate reporting

– Historical with three years of data

– GAAP and management reporting

– Standard and custom reporting

– Drive 3–4 year forecast


Reporting and Controls for Going Public

• Improve visibility to trackto guidance

– Bi-weekly revenue updates– Consolidations in minutes

• Eliminated manual work for revenue recognition with rules, templates and schedules

• Cloud financials enabled IPO process with 40% fewer staff

Project Accounting

Cloud Technology



Expense Management

Period Close

Consolidation


Revenue Management

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Lose the IT Shackles

Nonprofit educational organization

• 25% yearly growth in orders

• No integration between finance, e-commerce, and CRM systems

• Difficulties in scaling IT

– System instability from growth

– Upgrading and maintaining servers

– Maintaining physical environments and infrastructure


Lose the IT Shackles

• Reduced IT headcount as they grew

– Eliminated IT burden for hardware and application maintenance

– No manual, batch integration of data

– Reduction in end-user training and support

• Avg. Annual Benefit: $133K, ROI: 152%

“ ”We liked the idea of a cloud-based

solution that wasn’t tied to the Microsoft platform so we could avoid

ongoing costs.- James Linday, CFO

Project Accounting

Cloud Technology



Expense Management

Period Close

Consolidation


Revenue Management

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Agenda





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Jurate Baubliene, Finance Manager, Meetup



Total Members 13,365,028

Organizers 103,341

Meetup Groups 126,739

Meetups in past 30 days 388,960

RSVPs to Meetups in past 30 days 2,645,8630

0.4

0.8

1.2

1.6

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2.4

2.8

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Sep-

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Mill

ions

Active Members

Meetup, Inc.

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About Us


• Complications of the spreadsheets and disconnect from the accounting software was a struggle to manage

• Cumbersome and not collaborative tool for revenue recognition

• Month end closing process is a way to long

• Significant time spend on non-value added activities

• Stagnant accounting system without any remote access

• Manual error prone processes

• Outgrown QuickBooks

Driving the Change

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“There must be a better way!

There must be a new concept!”

And We Said to Ourselves….

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We found Intacct and it provided us with:

• Ability to handle complicated revenue recognition process

• Flexibility–Robust customization capabilities

• Accuracy of financial data

• Remote access

We Searched, and We Searched, and…

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• Daily revenue recognition versus monthly in old accounting system

• Significant increase in accuracy through manual processes automation

• Reduction in month end process by 2-3 days

• Improved operational efficiency–Expense Reports entered/submitted directly by employees

• Remote access–use it whenever you need it and where you needed: we even had no interruptions in our daily activities during hurricane Sandy!!!

• Remote check approval thanks to remote access and document uploading functionality

• Automated customer support system with quick response time to the problem resolution

Just 2 Months Later

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For the last 3 years Meetup, Inc. had more than 20% year to year growth

withZERO growth in accounting

department Sounds about right, doesn’t it!?

And Guess What?

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Agenda





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Reporting and Total Visibility, with No Manual Effort

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Financial Operational

Ad-HocManagementRegulatory

Summary Intermediate Transaction

Vendor Project Offerings and more…

Performance Measures

Stakeholder Needs

Granularity

Business Drivers

Basis / Books

Cash Accrual

• In real time

• No external tools

• No maintenance required

• Single “truth”


Eliminate Redundant Data Entry with Seamless Integration

Best in Class Financials

AICPA preferred

CRM Budgetingand

Planning

PayrollSales Tax

FixedAssets

Best in Class Financials

AICPA preferred

CRM Budgetingand

Planning

PayrollSales Tax

FixedAssetsCRM Budgetin

gand

Planning

PayrollSales Tax

FixedAssets

Best-in-Class Financials

• Freedom to choose the best solutions

• 21st centurycloud integration

• Vendor supported


• One-click consolidation– Built-in exchange rates– Control processes with audit trail– Automated elimination– Automated currency conversion and

cumulative translation adjustment

• Review– Instant comparative KPI’s and

drill-down visibility– Reduce risk on human error

• Consolidated reports– Real-time consolidated reports and

global aging– Instant organization wide view– Scale as your business grow

• Automated month-end adjustments– Consolidations journal

• Separate close for each entity

Automate Financial Processes

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Consolidated

Statements

Close Books

Automated Adjustments

Consolidation & Elimination

Review


Automate Business Processes

Price List

Customer Master

Collect

Recognize Revenue

Sales Finance

Order Invoice

Contract

Quote

• Integrated quote-to-cash recognition

• Consistent data across entire company

• Entire process is visible and accurate

• Lower costs and greater efficiency

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Robust Reporting

& Visibility

IntegrationAutomate

d Financial Processes Automate

d Business Processes

Cloud Financial Management

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Cloud Financials


• A single source of data

• Access from anywhere, anytime

• Labor can be located anywhere in the world

• Simultaneous users

The Cloud Lets you Access your Data from Anywhere

HR SERVICES

MANUFACTURING

SALES

SUPPLY CHAIN

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• Cloud vendors operate and maintain the system for you

• Better infrastructure and operations than nearly all companies can afford

– Fortune 100 class data centers– 24x7x365 operations– Continuous backups and

disaster recovery– SSAE 16 (previously SAS 70)

• Possible because costs are amortized across thousands of companies

The Cloud Gets You Out of the “No Value Added” IT Business

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The Cloud Brings You Closer to Your Vendor

Customer Feedback

Continuous

Innovation

Rapid Access to

New Features

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Easily and cost effectively scale and adapt to business needs:• Pay only for what you need

• Simultaneous and distributed users with strict permissions, separation of duties and financial control

• Support for large data files (customers, vendors, employees, etc)

• Industry leading system performance and reliability

• Add-on capabilities and integrations when you need them

The Cloud Provides Scale to Support Growth

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Intacct: Trusted Partner of Forward Thinking Organizations

Customers

2008 2009 2010 2011 2012

2,400 3,100

4,000

5,000

6,200+

Fastest-growing cloud financial management provider

35,000+ Business Entities

Industry-Leading 95%Customer Satisfaction and Retention

22 Top 100 CPA Firms Preferred Provider


THANK YOU


• Try Intacct with a free 30-day trialhttp://www.intacct.com/trial

• Attend an upcoming webinarhttp://www.intacct.com/webinars

• Follow us on Twitter@intacct_corp

• Connect with us on Facebookhttp://www.facebook.com/Intacct

• Contact us directly [email protected] | 877-437-7765

Interested in Learning More?

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If you have questions about CPE Credit please contact

Chris Brauer at [email protected]

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