Quickbooks: The New Economics of Making a Change

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THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS

Greg Allworth, Regional Sales Director, NetSuite

When is it Time to Move Beyond QuickBooks?


Is This You?

We had plenty of information; It was all over the place

It was in spreadsheets, QuickBooks reports, emails. But it wasn’t integrated

consolidated reporting was manual and tedious It could take many hours for a large report and we couldn’t vouch for a high degree of

accuracy

“

”


Or is This?

We were running on about five different systems,

and that led to a real inability to connect records between two systems,

We had no 360-degree view of our customers and activities,

and I was constantly starved for information

“

”


Or Maybe This?

There was literally a big line in the sand where sales had to throw a prospect over the wall

once they became a customer, and accounting had to re-create all of the

information about that customer The people accessing accounting data didn’t

have access to the CRM system

“

”


A Typical Applications Journey….

Started with QuickBooks

Added Excel for analytics

Added Act, Goldmine, or Salesforce.com

Built a homegrown website

Upgraded QuickBooks or added more seats

Over time: more money, more resources, more integrations

2

1

3

4

5


Quote

Pick & Pack

Invoice

Sales Order

Customer Service

Sales / Web

Order Mgmt

Finance

Warehouse

Support

Manual Homegrown

And Your Business Ends Up in Silos


You May Have Found More Of Your

Business Buried In Spreadsheets…….

Recurring billing

Financial consolidation

Budgeting & Management

reporting

Customer information

Shipping and Fulfillment

Sales orders

Purchase requests

Revenue Recognition


Often, It’s Due to an Applications “Hairball”


Australia

REG

IO

N

GLO

BA

L

AMERICAS EMEA APAC

Worldwide HQ

Canada USA Brazil France Germany Japan China UK

CO

UN

TR

Y

..or Even Worse, a Hairball of Hairballs


Beyond Accounting:

ERP that Improves Organizational Efficiency

Trait Business Benefit

Quote to cash integration Reduce cycle time and overhead

Procure to pay integration Eliminate spreadsheets

Web based T&E management

Improve employee productivity

Comprehensive audit trail Reduce audit times and improve compliance

Self service dashboards & reporting

Reduce time spent “hunting” Collaboration and “actionable

One view of the customer Improve team collaboration, reduce redundancy


Beyond Accounting:

ERP that Supports Global Growth


Support multi-sub and COAs Manage consolidation times as business grows

Country specific tax and accounting regulations

Eliminate need to add ERP to support local needs

Automated sales tax management

Calculate sales taxes across channels and geos

Drill down from corporate to subsidiaries

Ensure straight line visibility from HQ to geos

Multi-language management Ensure you can localize solution to geo needs


Beyond Accounting:

ERP that Supports Business Flexibility


Comprehensive web services integration

Integrate with suppliers, channels, and services

Graphical workflow management

Empower line of business to automate business process

Managed customization layer Ensure that customizations will not “version lock” application

Mobile and anywhere access Support the distributed organization

Industry functionality and ecosystem

“Future proof” application


Typical IT Budget Allocation

91% Maintenance

9% Innovation

15

Current

66% on old

versions

Source: ERP in SME, Aug 2010

What To Avoid:

Typical ERP Version

16

Why Consider Cloud ERP?

Cloud ERP enables finance to:

Stay abreast of latest accounting changes

Scale a distributed finance organization

SAS 70 Type II controls included

Leverage a modern easier to integrate solution

Typically get more tightly integrated analytics

Automated upgrades and eliminate “wasted” maintenance

Reallocate IT budget from maintenance to innovation


Four ERP Trends for 2011

1

2

3

4

Cloud-based deployment gaining traction

Mobile technology empowering business people

Online user experiences advancing via rich clients, business intelligence, and collaboration

Business process modeling (BPM) embedded in and around applications

Trends 2011: ERP Customers Demand Better Flexibility, Cost Transparency, And Mobility Paul Hamerman, January 11, 2011


General Tips for Success

• Assign a cross functional team

for selection and implementation

• Assign business benefit goals and measure

• Consider how to broaden ERP usage

across business and departments

• Ensure you’ll get clear visibility into ERP data

• Plan for a distributed, mobile organization


Let’s Check Back In:

Our processes are integrated and automatic, and our analysis is

based on dependable, up-

to-the-minute information

We’re able to grow in a controlled and

scalable way without worrying about our systems or having to add

new staff members just to keep up

with our volume

We are able to consolidate any

number of entities instantly, and can acquire or create new subsidiaries

and bring them up to speed very

quickly


Thank You


Ernie Humphrey, VP Educational Programs, Proformative

Upgrading your Accounting along with your Systems Prepare for the Future


Upgrade your Accounting

• Take the Opportunity!

• Improve Controls

• Redesign Processes

• Deepen Analytical Capabilities

• Set the Foundation



• Accounting Controls

• Segregation of Duties

• Routings and Approvals

• Purchasing Budget Control

• Inventory and WIP

• Cash Flow control



• Process Automation

• Front end Systems Integration

• Revenue Recognition

• Multicurrency revaluations

• Go Paperless

– Scanned documents

– EDI

– Electronic banking



• Implement Analytical Structure

• Product Lines

• Projects & Programs

• Departments

• Divisions

• Locations



• Anticipate Growth and Change

• Divisional Expansion

• Multicompany Consolidation

– Normalize accounting

• Enable Manager Decision Making



• Other Considerations

• On Premise vs. Hosted vs. SaaS

– Cash Position

– Use of Financing

– Existing IT resources

– Consider your Business – Now & Future

• Consultative Resources

• Future Accounting Pronouncements


Thank You


Charlie Hill, Northeast Regional Manager,

Adaptive Planning

Planning and Reporting beyond

QuickBooks and Excel


Agenda

• Planning and reporting: what should I be thinking about?

• When to move beyond Excel and QuickBooks

• What to look for in a planning and reporting solution


Planning and Reporting: moving beyond

historical financial statements

Planning and Reporting:

A closed loop management process

– Establish a baseline set of goals

translated into financial and operational

targets (budget)

– Assess company progress against goals

by comparing your budget with historical

transactional details

– Revise your outlook (forecast) based on

new information (including actuals)

– Understand the implications of

actions/decisions by assessing multiple

potential future scenarios to

– Align management and staff around a

common set of goals and supporting

actions


Planning and reporting levels of maturity

Participants

All Mgrs with KPI Impact

Functional Mgrs

Divisional Mgr

Senior Execs

Finance

Frequency

Rolling Forecasts

Scenario Analysis

Monthly Forecasts

Quarterly Forecast

Semi-Annual Revision

Annual Budget

Data

Metrics / KPIs

Operational Data

BS / Cash Flow

Inc. Statement

Sales

Capital

Personnel

Expense

Maturity

Expert

Beginner

Process

Collaborative Online Dialogue

Alerting

Workflow

Annotations

Email

Reporting

XBRL

SEC Reporting

Dashboards

Board Packs

Mgmt Reporting

Variance Reports

Budget Summary

Integration

Connector- Other Ops Data

Import Other Ops Data

Connector GL Data

Import GL Data

Export AP to GL

No integration


Many Problems from Spreadsheets

Primary Technology

What primary technology do you use to manage your budgeting and planning processes?

3%

10%

21%

66%

Other, please

specify

ERP System

Budgeting

Application

Spreadsheets

Spreadsheets are the primary

planning technology for 66% of

companies

Usage is common for all company

sizes, including 55% of those with

1,000+ employees

Spreadsheet cause many problems:

Errors

Consolidation challenges

Rigid templates

Distribution challenges

Version control problems

Reporting and variance analysis

challenges

And more… time, waste, poor return

on investment?

Source: Oct 2009 BPM Forum & Adaptive Planning Survey


Moving beyond Excel and QuickBooks

• Need to improve accountability and execution

• Need to collaborate with a distributed or growing team

• Need to evaluate future outcomes on a routine basis

• Need to spend less time managing data, more time analyzing and

managing business

• Need to create timely & accurate reports, including variance reporting

and drill down capabilities

• Need to report on both operational and financial data

• Need to quickly integrate historical data with forecasts


What to look for in a planning and

reporting solution

• Web-based (rapidly implement, collaborate anywhere)

• Excel-like interface (easy to use, easy to implement)

• Customizable data entry templates (easy to obtain user buy-in)

• Simple version creation (enables forecasting and scenarios)

• Personnel and Revenue planning to suit your business (enables

planning appropriately suited for your business model)

• Multi-dimensional data modeling (easily tag and analyze your data)

• Single complete solution, not pieces to be integrated (no IT resources

needed to implement or manage the application)

• Integration to GL and other data sources (simplify reporting and

analysis)

• Drag & drop reporting builder (easy for all users to build reports)

• Software as a Service (finance in control)


SaaS Delivers Significant Advantages

On-Premise Model SaaS Model

High upfront cost Low annual subscriptions

Need new HW and SW Do not need new HW or SW

Implement in months/years Implement in weeks

IT support needed (initial &

ongoing)

No IT involvement required

High risk: big upfront purchase Low risk: can cancel at any time

High overall TCO Low overall TCO

New releases every 1 – 2 years New releases 2 – 3X per year

Time consuming, costly

upgrades

Automatic upgrades

Designed for techie users Designed for business users


On Demand: Reducing Costs, Improving

Performance by Investing in Business

– Written in “The End of Software”

– “more than 75% of the IT budget is spent just maintaining and

running existing systems and software infrastructure”

– “customers can spend up to four times the cost of their software

license per year to own and manage their applications”

– Written in the Wall Street Journal, 2002

– “the initial purchase is usually only 5% of the total cost of owning

and maintaining a program”


35% - 55% Lower TCO vs. Dynamics GP & CRM

Tremendous TCO Advantage

16% Lower TCO SaaS vs. On-Premise

33% Lower TCO ByD vs. On-Premise

50% Lower TCO SaaS vs. On-Premise


67% Lower Total Cost of Ownership for

SaaS vs. On-Premise BPM Solutions

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

SaaS On-Premise

Training

Implement & Support

Application Software

IT Infrastructure

4-Year Total Cost of Ownership for SaaS vs. On-Premise BPM Applications

(10 Full Users & 15 Review Users)

Source: Hurwitz & Associates, 2010. SaaS solution analyzed: Adaptive Planning. On-premise solutions analyzed: Clarity Systems, Longview, and Prophix.


Democratization…

SOHO SMB Enterprise

World Class Performance/Scalability for Any Size business

– Same Features

– Same Performance

– Same Scalability

– Same Reliability

– Same Global Solution


Thank You


Panel Discussion and Q&A


Proformative Contact Ernie Humphrey

VP, Educational Programs [email protected]

We will send you a follow-up survey and would

appreciate your feedback.

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additional questions you may have and to continue

this conversation with your peers and the experts

you heard from today.

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Economy & Finance

Quickbooks: The New Economics of Making a Change