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Technology keeps advancing, your company keeps growing and the business environment is more volatile than ever. The pressure is on to keep pace. That’s why finance teams are so keen on accounting software integrations.

Integrated accounting software packages enable you to:

• Connect data from multiple systems
• Automatically populate your finance system
• Integrate with your financial reporting.

After all, no piece of information exists in isolation. Accounting software integrations give you a seamless flow of information from one system to another. This real-time data sharing across the business is one of the best ways to stay competitive.

3 benefits of integrated accounting software packages

1. Boost Productivity

• No more duplicated data entries
• No need to switch between different apps
• Fewer errors
• Quicker, simpler processing

2. Better, quicker decision making

• Everyone’s working from ‘a single version of the truth’
• Data is more reliable
• Enhanced analysis (data is more meaningful and powerful when it’s pulled together)
• See trends and draw conclusions more quickly

3. Happier customers, employees and stakeholders

• Integrate with your CRM to support customers more effectively
• Streamline your end-to-end sales and fulfilment processes
• Reduce repetitive, manual processes
• Support decision-makers with relevant, reliable data.

Before the Cloud, accounting software integrations were tricky and costly. But AccountsIQ’s integrated accounting software makes it straightforward to connect your business systems. This will help you save time, improve processes and create smart real time managements reports.

What systems should I consider integrating with my accounting software?

AccountsIQ has an open API strategy that makes integration with other apps easy. For example, many of our customers benefit from automated bank reconciliations through our partnership with open banking platform, Plaid. Other frequently requested integrations are AP, expense management and OCR technology, such as Kefron, AutoEntry and LightYear and our accounting software also integrates with Salesforce.

“The accounting software integrations are one of the things I love about AccountsIQ.”

Humentum is a leading global non-profit, working with humanitarian and development organisations. They have multiple income and funding streams and needed a finance system that would integrate seamlessly with their other software. They’ve now integrated AccountsIQ with:

• Salesforce: Engagement Managers can see exactly what their client has been invoiced. They don’t need to email finance to ask because it’s all linked together; they’ve become more self-sufficient.
• Arlo: clients can register for Humentum’s training courses and pay by credit card or request an invoice to pay by bank transfer.
• Stripe: clients can also choose to pay invoices by credit card (a common practice in the US).
• iCompleat: suppliers send PDF invoices and iCompleat reads and codes the details automatically. All that Humentum’s finance team needs to do is check it and send for approval. The approved invoices are then automatically posted into AccountsIQ.

“It’s much better than manually sending invoices around the company. In fact, the ability to do all these integrations is one of the things I love about AccountsIQ.”

Jocelyn Boughton, Humentum’s Global Director, Finance & Administration

AccountsIQ will help you make the most of your accounting software integrations

We offer a full accounting software integrations service that includes customised integrations. If you don’t see the system you want to integrate on our Accounting Software Integration Partners page, just talk to us. For example, rapidly expanding restaurant group, Camile Thai, worked with our Integrations team so they could integrate AccountsIQ with MarketMan (a restaurant inventory management system) to give them granular business intelligence information.

Read our Camile Thai case study.

At AccountsIQ, we don’t see software integrations as a ‘plug and play’ service. We customise the integration to meet your individual needs. And our team of accounting software integration experts are always on hand to help.

Pete McKeown, Systems Integration Consultant at AccountsIQ explains:

“We talk to customers to understand their pain points and spec out what they want. That means we can design and configure the integration for customers’ specific processes and workflows. We strive to make it do exactly what they want it to do.

“For example, recently a customer said they wanted to invoice from Salesforce. Their data wasn’t structured in the optimum way to do this, so we helped them to design a bespoke invoice solution in Salesforce. We also provide a cost/benefit analysis so they can make the business case internally for an integration that will improve their productivity.

“I’ve been implementing finance software for 25 years, and I’m always happy to sit down with customers to work out what’s important for them and suggest ways they can manage it all.”

Pete and his team will often co-ordinate with our Onboarding team to ensure customers have business critical integrations up and running from day 1. However, they also work with customers on an on-going basis. Customers often come back to us post go-live because they want to integrate another system with their AccountsIQ platform.

“The integration and the API are what we’ve been really happy with. We have developers in house who roll their eyes when you talk about the other larger accounting software vendors because they are so cumbersome. Our team found it really easy working with AccountsIQ to get it all up and running. That’s what really sold us.”

Helen MacDonald, Finance Manager at Cyber Security experts, PortSwigger.

Read our PortSwigger case study.

The business world never stands still. As your company grows and your needs become more complex, you’ll probably want to introduce new systems to your tech stack. Our Integrations team will always be on hand to consult and advise on integrating new software, processes and workflows into AccountsIQ.

Find out more about our accounting software integrations

Request a callback or call us on (0)203 598 7350 to speak to one of our finance system integration experts and to arrange a free consultation.

Download our Guide to System Integration in the Cloud.

Partnering with a venture capitalist (VC) gives scale-ups the funding and expertise they need to grow their infrastructure and move to the next stage of their development.  Such partnerships are a crucial step for many businesses looking to turn an innovative idea into a sustainable company. In fact, according to research from the CBI, running out of cash or failing to raise new capital is the #1 reason start-ups fail.

What financial data are venture capitalists looking for?

Potential investors will evaluate your ability to acquire customers, grow revenue, and (ultimately) deliver profits. To help them make those assessments, your finance team will need to provide:  

• Evidence of your management information analysis capabilities
• Accurate and consistent KPI tracking and reporting
• Historic and forecast revenue growth
• Detailed understanding of how and why your business is investing its money
• Easy access to key information, such as customer contracts and partner agreements.

Two ways AccountsIQ can help

AccountsIQ financial reporting software provides advanced accounting and reporting, on a Cloud platform, to help fast-growing companies in two ways:

#1 A clear view of your current financial position

At the click of a button, you’ll know your:

• Cashflow predictions
• Profit and loss forecasts
• Sales forecasts
• Operational costs
• Fixed overheads
• Net profit margins
• Audited accounts
• Time to achieve profitability.

#2 Analysis and reporting

To make informed strategic growth decisions, you need the flexibility to slice and dice your financial data. For example, you might need to compare:

• Recurring revenue generated by customer or industry segment
• Churn rate against marketing spend
• Performance of each department/function/location versus spend
• Subscription income by location/customer segment.

You’ll also need sophisticated forecast and scenario planning tools, for example to:

• Estimate capital/other funding needed for expansion
• Assess market potential
• Model different pricing structures.

Let’s look at an example

Here’s how an IT consulting firm could use the data in their AccountsIQ platform to gain relevant, real-time insights into their business operations and performance, by answering critical questions, such as:

• How profitable are our consulting projects in Asia compared to Europe and North America?
• How are each of our consultants performing by business activity?
• Are any of our branches highly dependent on revenue from just one customer?
• How much revenue from each individual customer comes from project management and how much from consulting?

Fast-growing companies typically experience similar pain points or growth obstacles related to their finance systems and processes. Here are the 7 most common ones:

Pain point #1 Fundraising

This can be a time-consuming, stressful process that distracts from your ‘business as usual’ activities and growth driving initiatives.

Pain point #2 Outgrowing start-up finance system

It struggles to cope with increased transaction volumes. Your finance team spends valuable time manually collating data to monitor KPIs and analyse performance. If you become part of a group of companies, either through acquisition or because you create new subsidiaries, your team also has to manually amalgamate your group accounts every month.

Pain point #3 Multi-currency and multi-company transactions

You expand into new markets and need effective FX and inter-company accounting.

Pain point #4 Loss of control

With multiple geographically dispersed team members you need an effective audit trail to control and keep tabs on all financial transactions and reports.

Pain point #5 Lack of business intelligence

As your business structure becomes more complex, you need real time insights broken down by product, revenue stream, country or partner to make fast, informed decisions.

Pain point #6 Disjointed legacy systems and processes

For efficiency and data analysis purposes your finance system needs to integrate and ensure automatic data transfers between your other systems, including your CRM, EPOS, payroll, expenses and bank.

Pain point #7 Talent acquisition and retention

A modern, forward-thinking finance team expects to work with the latest finance technology.

You can alleviate many of these pain points by getting on the appropriate finance system before it becomes an emergency. Your finance system should be designed to scale with you for at least the next 5-10 years.   

Does your business still prepare your consolidated accounts manually? Maybe you’ve acquired new subsidiaries or launched new group entities organically over a number of years. As a result, you may now be faced with late nights pouring over endless spreadsheets and doing repetitive tasks to consolidate their accounts. If so, you’re not alone.

Preparing group consolidated accounts is the top frustration for many group finance teams. Throw in the new world of flexible hybrid working and many finance teams are asking similar questions. For example:  

• How can we consolidate accounts more efficiently?
• How can we work more collaboratively?
• Is there a better alternative to online spreadsheets that keep crashing; a platform where everyone can edit and make changes in real time?

 This article answers many of the key questions around how to consolidate accounts and looks at ways group finance teams can simplify the process to become more efficient.  

What are group consolidated accounts?

Group consolidation involves the merging of two or more business entities - in which all financial reporting treats a group of organisations as a single entity.

Which organisations need to prepare consolidated accounts?

Under company law and accounting standards, a group of companies must produce consolidated financial statements. This means that the financial statements for each of the members of the group are combined into one set, as if it was one entity. There are some exemptions from this rule. For example, groups classified as being in the ‘small’ threshold.

If you’re unsure about whether your group is legally required to prepare consolidated accounts, you should seek professional advice.

As with many other areas of accounting, these rules and regulations are there to ensure and encourage responsible business practice.   However, compliance is by no means the only reason for consolidating accounts. From a business perspective, the real value of preparing consolidated accounts each month lies in delivering clear financial insights to the management team and other stakeholders.

What does group accounts consolidation mean?

For companies with subsidiaries, consolidating group accounts is a monthly challenge. There can be multiple variables to deal with, from partial ownership to multi-currency transactions. If your finance team is doing all this the traditional way, by exporting from your accounting systems into Excel spreadsheets, it’s stressful, time-consuming and – worst of all – error-prone.  

What are the common issues with consolidating group accounts?

The 3 big issues with consolidating group accounts manually are:

1. It’s time consuming, inefficient and error prone. Running complex consolidation formulae in Excel spreadsheets inevitably leads to errors and inaccuracies. These errors can be difficult to spot and time consuming to correct.
2. Getting crucial company data to management teams, boards and shareholders in a timely manner.  
3. Finance teams find collaborative working extremely difficult if they are dependent on online spreadsheets.

A step-by-step guide to group consolidation

Most group finance managers now look to modern technology and software platforms to drive efficiencies and help them simplify the process of consolidating group accounts. Here’s a step-by-step guide to taking the stress out of your group consolidation.

1. Automate consolidation of multiple subsidiaries (including sub-groups)

Automated consolidation is the dream of group accountants frustrated by the cumbersome process of amalgamating accounts from multiple entities. Automation means you can collate, evaluate and update all subsidiary data accurately and quickly. With the right accounting software, even complex corporate structures can consolidate any number of subsidiaries’ datasets with ease. That includes sub-groups where the consolidated entity itself becomes a subsidiary of a large group consolidation.

2. Record intercompany loans

If the parent company has been consolidating the cash balances of its subsidiaries into an account that invests or gains interest, then intercompany loans should be recorded from the subsidiaries to the parent company. Any interest income allocation from these consolidated investments should be recorded from the parent company to the subsidiaries.

3. Enable foreign currency consolidations

Subsidiaries may need to operate in their own base currency. However, at group level, you’ll need to translate those results into the base currency of the consolidation entity.  Group consolidation software makes this process straight-forward.

AccountsIQ, for example, correctly translates P&L accounts using average period rates, and Balance Sheet accounts using period-end rates. The Central Currency Management feature means you can maintain average and period-end exchange rates in multiple subsidiaries in one central table, that updates automatically.

4. Charge payables and payroll expenses

All accounts payable recorded during the consolidation period need to be appropriately charged to the subsidiaries. Payroll expenses also need to be correctly allocated to the various subsidiaries. This can be done in one click with appropriate accounting software, saving time.

5. Ensure group level management reporting

To view overall performance and trends, group companies need to be able to report on actuals vs budgets at both individual entity and group level. The ability to do this fast and accurately can quickly make your finance team a valued contributor to discussions about group strategy.

6. Post intercompany charges

Modern accounting software makes posting intercompany charges much simpler. With AccountsIQ, for example, you can raise intercompany sales invoices that automatically create purchase invoices in the receiving company. Purchase invoices remain “unposted” until approved and coded in the receiving company. This ensures that intercompany accounts remain balanced for elimination at group level, even if balances are in different currencies.

7. Manage currency revaluations

At month-end your team needs the ability to revalue foreign currency bank, debtor and creditor accounts at subsidiary level based on centrally maintained exchange rates. With AccountsIQ, unrealised gains (losses) are automatically posted, and the base currency value of assets and liabilities adjusted before consolidation. This facilitates elimination of intercompany balances at group level.

8. Manage complex ownership arrangements

Some groups will need to take account of minority interests liability (where the ownership interest is greater than 50% but less than 100%). AccountsIQ’s group consolidation software automatically recognises minority interests liability and creates relevant postings in the consolidation entity.

9. Post consolidation adjustments

Your finance team needs to be able to make adjustments at group level without affecting the subsidiary figures. This provides finance managers with powerful granular control.

10. Close books

It’s important to close the subsidiary and parent company books to flag that the accounting period has ended and the accounts have been consolidated. This prevents any additional transactions from being recorded after the consolidation, ensuring that all data is accurate. 

11. Review and issue financial statements

Before sharing any financial statements, it is important to review the statements produced from the consolidated accounts of both subsidiaries and the parent company. Flag and investigate any items that appear unusual. Once happy with accurate financial statements, these can be distributed to the parent company. 

Things to consider during group accounts consolidation

Many group finance teams are deciding that it’s time to move away from the risks and inefficiencies of using spreadsheets to consolidate group accounts. If that applies to you, the choice of how to handle your group accounts falls into two broad options:

1. Add another tool to the existing accounting software as a workaround to the problem.  
2. Use combined accounting and group consolidation software, such as AccountsIQ, that enables you to create consolidated accounts and sophisticated group and individual entity management reports all on one platform.

"AccountsIQ’s main success for us has been the efficiency it has brought to the business. The product is a good fit for our pretty complex accounting requirements and AccountsIQ gives us real value for money. We can consolidate 80 entities in a few minutes."

 Lee Camp, Finance Director, Salamanca Group

What business intelligence does your group need?

Another consideration when consolidating accounts is the level of reporting, analysis and forecasting your group needs, both now and in the future as you continue to grow. You don’t want to have to wait until all the manual, consolidation spreadsheets are reconciled, audited and pre-processed to get a clear view of your group’s financial position. Growing, ambitious companies need accurate and timely group data; not just financial records but actionable data on KPIs, financial modelling and scenario planning.

We’ve tackled this consolidated reporting problem in a unique way

By linking the subsidiary-level ledger codes to a common set of group summary codes, AccountsIQ cloud consolidation software allows your subsidiaries to benefit from individual local coding, while you retrieve and drill-down to the data you need. This gives you multi-dimensional analysis, such as by location, department, product or employee, with unified group reporting – all with just one click.

AccountsIQ also offers a library of over 250 pre-built reports and customised role-based dashboards to give you all the visibility and flexibility you need.

All this means you can consolidate your group accounts as often as you wish – no need to wait until month-end – to ensure you have real-time data for faster, more informed decision making.

How future-proof is your group’s finance system?

As your group continues to grow, your accounting needs will undoubtably change. For example, you might need to onboard new entities to your group structure, change the way you manage your reporting or integrate your accounting system with other technology, such as your CRM or your bank (under Open Banking legislation) to consolidate your Treasury position in real time. It’s always worth checking to see if the group accounting software you’re considering is designed to be flexible and future-proof with an open API as standard.  

What’s the best group consolidating system for your finance team?

Last, but by no means least, consider the impact of implementing new software on your team. In our experience these change projects run smoothly when leaders engage and communicate with their wider team, and you have a supportive software partner to work with. In fact, team morale gets a major boost once you’re no longer reliant on repetitive manual processes, long hours reconciling discrepancies and complex workarounds.

 When it comes to consolidating complex group accounts, we’ve never come across a finance team that feels nostalgic for their Excel spreadsheets.

After two years of firefighting and dealing with the Covid-19 fallout, 94%* of CFOs expect to invest more in digital technology over the next three years than they did in the years before the pandemic.

But how do you decide what your organisation needs from a digital finance system?

To guide you through this process, we’ve created a comprehensive finance system requirements checklist to help you evaluate which features you need, which you don’t and how different finance and accounting systems stack up.

Key considerations when choosing a new finance system

Before you begin the search for a new finance system, you need to set the scope and determine your key factors. For example, you may wish to replace an entire outdated system or just focus on key areas such as expenses. It’s important to take a look at the bigger picture and understand how the next system will interact with other systems to have a successful switch. By setting the scope from the very beginning of the process, you’ll have a defined list of requirements of all the things you want from your new finance system, allowing you to focus and avoid overrunning. 

Size of your company

When it comes to choosing a new finance system for your company's accounting needs, it’s important to reflect on how big your company is. With the majority of finance systems, there’s no one-size-fits-all, so investigate the capacity of new software options and consider the future of the company too - is it likely to grow in the coming years? 

Budget

Accounting software varies in price, so it’s essential to have a finalised budget so that you can analyse which systems will be accessible to you.

Deployment options

A final thing any business must consider before investing in a new finance system is the type of deployment they require - whether it be cloud, on-premise or a hybrid. 

Opting for cloud accounting software allows you to access all data, anywhere at any time. This option is well suited for global organisations. 

Other companies may prefer an on-premise option where the software is only accessible from servers within a specific location. This may be more fitted to small companies with local partners.

Top features of finance systems for all of your accounting needs

There are many features that need to be considered when choosing a new finance system, from how reports are downloaded to how secure the software is. Here are some of the main features to look out for when browsing financial software options:

• General ledger
• Reporting 
• Accounts payable
• Accounts receivable 
• Customisation 
• Security of data
• Cloud solution
• Technical support 
• Usability

How can you prioritise your business’ accounting software requirements?

It may be difficult to find a finance software which meets all of your accounting needs so you may need to prioritise the features that are essential for your financial management. A few things to consider when prioritising features include: 

• Will it save operational time? 
• Is it more cost-effective? 
• Is it something you will require long-term? 
• Are there alternatives that will work for you?  

Cloud accounting has become a hugely popular way of doing your accounting and managing company finances, but many companies and organisations still use traditional and legacy software. It’s important to understand the differences and relative benefits of each of these if you’re considering upgrading from your existing system to a new cloud accounting software package. 

What is traditional accounting software?

Traditional or desktop accounting software provided a hard-drive based system of entering financial information and records to be stored on a computer. You can download the program to your computer, and use the range of functions it provides from that device, with the data stored in the hard drive.

What is cloud accounting software?

Cloud accounting software provides a digital platform which carries out both core and more advanced accounting functions. The data is stored in the cloud, and is accessed via the internet, meaning that users can log in on any device and in any location where they have internet access.

The differences between traditional and cloud accounting software

There are some key differences which distinguish cloud and traditional or desktop accounting software, including the kinds of security protections they have, the costs they incur, and the level of collaboration between coworkers and stakeholders they allow. 

Cost

Cloud accounting software is generally paid for at a set monthly rate, the price which will depend on the provider and the package of features you choose. Many cloud accounting platforms provide a cheaper, more basic package, and a premium package with a wider array of features and benefits.

On the other hand, traditional accounting software incurs a different set of costs. It has an initial purchase cost for software and hard drives, as well as for the ongoing maintenance the system will require. While cloud accounting software will normally be updated automatically in order to accommodate changing needs over time, when a traditional desktop accounting software package needs updating, you’ll have to buy the new version of the software.

Accessibility

Cloud accounting software can be accessed from any device with an internet connection, from anywhere in the world. This enables many users to access the system at the same time from different locations. For companies and organisations this can be vital in allowing employees to work remotely, something that is becoming increasingly important, especially following the shifts in working habits which occurred during the pandemic.

With a traditional desktop system, users have to access the system on a particular computer in a particular place. This limits how many people can use the software at one time, and means they have to be in a specific location to do so.

Scalability

Accounting and financial management systems need to be able to adapt to the needs of a business or organisation over time. Cloud accounting can allow for customisation which accommodates changes in a company’s size and structure. For example, you might choose a cloud accounting system for a medium-sized business because it will allow you to add role-based dashboards, integrate additional applications and add extra storage as your company expands.

Traditional accounting systems have more fixed levels of storage and adapt less readily to the need for more functions. If you want to increase the capabilities of your accounting system, for example to accommodate multi-currency accounting or to enhance its smart reporting function.

Collaboration

One of the benefits of cloud accounting software is how it enables team working and better collaboration with your coworkers. Many users can log in and use the system at the same time from any location, and access custom role-based dashboards which are tailored to their individual job descriptions.

This isn’t as easy using traditional and desktop accounting software, which can only be accessed using the devices which the software is downloaded onto. This puts a strict limit on the number of people who can use a system and where they can use it from, making it harder to work collaboratively.

Safety and security

When dealing with financial information, it’s vital to know that you aren’t taking any unnecessary risks, and cloud accounting providers are increasingly taking these concerns very seriously. As a result, most cloud accounting software packages have high levels of online security and protection which protect against hackers and cybersecurity breaches. These will be regularly reviewed and automatically updated by the provider.

High-tech security solutions are far less common a feature for traditional or desktop accounting software than for cloud accounting. The automatic backup which occurs while you work on the cloud is not replicated on a desktop system, so data is vulnerable to being lost if the computer it is stored on breaks. Traditional and desktop accounting may also be vulnerable to viruses and ransomware, and you need to take any necessary preventative steps yourself.

Which software is right for you?

Deciding which kind of accounting software is right for you means considering the needs of your business, both now and in the future, and weighing up the advantages and disadvantages of both desktop and cloud accounting systems. If you’re currently using desktop accounting software, you’ll want to learn how cloud accounting works to help you decide if you want to make the switch.

AccountsIQ award-winning cloud accounting software is an advanced and versatile software package which is highly customisable, has a huge range of capabilities, and is suitable for many different kinds of companies. Whatever your accounting needs, request a demo today and learn more about how our software can help your business.

Group accounting can be one of the most challenging and technically difficult areas for finance teams. You might have multiple subsidiaries operating in different currencies, using different accounting software and processes. Manual group consolidation may be relatively straightforward (although still time-consuming) for a small group of two or three companies – but if you’re a rapidly growing national or multi-national group, it’s a logistical and error-prone nightmare. 

This article explores some of the main group accounting challenges and how finance managers can overcome them. The good news is that modern accounting software designed with group accounting in mind will help you manage these challenges effectively. Let’s start with the basics…

What is group accounting?

Group companies generally need financial data to show the position and performance of each individual company in the group. However, these individual accounts won’t give you the crucial financial information you need for the group as whole. According to the Association of Chartered Treasurers (ACT), group accounts:

 “…combine all the information from the subsidiaries under the parent’s control. Group accounts report the underlying commercial reality of the effective control of the parent. This makes groups readily comparable, even if their legal and ownership structures are quite different. Importantly though, the accounting group is not a legal entity in its own right.”

The main challenges faced by group accounting professionals

 1.      Old-fashioned, manual processes  

Managing complex group accounts with old-fashioned, manual processes is time consuming and error prone. Many group accountants are still collating, evaluating, reporting and updating all their subsidiaries’ financial data using multiple spreadsheets. That’s because most entry-level accounting software doesn’t handle group accounts consolidation.

 2.      Risk of errors and loss of control

For security reasons, many finance teams restrict access to group accounts spreadsheets to a few members of the team.  They’re reluctant to extend access to other business leaders and budget holders because it’s so easy to make simple mistakes that lead to serious problems. That’s understandable from a compliance point of view but it makes it difficult for finance to work collaboratively and add value across the business.

 3.      Inaccurate data

Group accounts spreadsheets can quickly become over complicated. Hidden formulae and issues around multi-currency trading and ensuring every subsidiary is using a common, centrally imposed daily exchange rate, leave the group accounts process exposed to errors on multiple levels. Using spreadsheets for group accounts also makes it difficult to handle partial ownership issues, such as minority interests and groups within groups.

 4.      Inter-company accounting is cumbersome  

Group accounting is full of complex processes. From apportioning shared costs across a group structure to managing intercompany transactions; it all takes an enormous amount of time if you’re doing it manually. Even when you think you’re done, the group accounts often need reviewing and reworking.

 5.      Lack of clarity  

Different departments or business units demand timely management information they can trust. Business leaders (understandably) don’t want to wait until all the manual, consolidation spreadsheets are reconciled, audited and processed.  Even when they get the reports, comparing results throughout the group can be difficult and it’s often a challenge to get a clear and consistent view of individual operating businesses or group trends.

How to overcome these challenges

Modern accounting software, such as AccountsIQ, is designed to meet the needs of group accountants and overcome many of the time, risk and stress issues associated with managing group accounts. Collating financial data on one platform enables finance managers to consolidate the accounts of any number of companies in real-time. In addition, your group accounts data will be held securely while also being accessible.

The benefits of using group accounting software

Here’s a brief overview of the main benefits of modern Cloud accounting software for group companies.

Taking the complexity out of group accounting

• Frees-up finance team time by streamlining the capture, processing and reporting of high volume or complex group accounting transactions
• Automated consolidation – even for complex group companies – speeds up month-end and eliminates errors from manual processes
• It’s easy to manage complex ownership arrangements. For example, minority interests are recognised and transactions posted automatically
• No foreign currency headaches. Subsidiaries operate in their own base currency with results translated into the base currency of the consolidation entity, based on stored exchange rates for each reporting period
• Simplified inter-company charging
• Post consolidation adjustments can be made at group level without affecting subsidiary figures.

Giving group companies better financial data

• Clear, real-time data to analyse and evaluate group and subsidiary performance – slice and dice the data any way you want
• Innovative, insightful management reports that engage non-finance teams
• Timely business intelligence so your business leaders can make evidence-based decisions
• Integrate your accounting software with your other business systems, such as Salesforce, Concur, BrightPay and AutoEntry, for more coordinated and efficient financial management.

Group accounting software is easy (and safe) to use

• Safe, secure Cloud infrastructure available 24/7 so your team can work from anywhere
• Easy to use software even for non-finance or other light users
• Improved job satisfaction and less stress as you ditch the frustrating spreadsheets and workarounds.

Changing finance system feels risky to some people. But for growing businesses, the biggest risk is in not changing soon enough. Without a modern finance system, you’re risking low productivity levels, and error-prone management reports.

You also won’t have the information and metrics you need to spot problems and risks early, or to take advantage of opportunities. AccountsIQ is dedicated to helping businesses transform their finance function. And to making the process as easy and pain-free as possible.

Our onboarding and implementation consultants are qualified experts in accounting, technology implementation and support. They’re also experienced in delivering software projects for complex, multi-entity organisations. They work with your team to devise a detailed onboarding, implementation and training plan to ensure you’re up and running quickly.

Here’s an overview of how switching to AccountsIQ works

Our support includes free training  

AIQ Academy, our e-learning portal, gives customers ‘on-demand’ training on all our cloud accounting software features. It’s accessible anywhere, at any time and at no extra cost. With over 100 training videos, it’s a great way to train new employees or refresh your existing team on more complex functions, such as Group Consolidation.

You can take small steps  

You don’t need to onboard in one big leap; just take small steps. With AccountsIQ, you can move your day-to-day Core Financials finance processes onto the platform to score some quick wins. You can add other, more complex functionality as and when you need it.

Customer Success Story – Freight Investor Services

“The great thing about AccountsIQ is that we have the flexibility to re-think the way we structure the dimension and BI coding over time,” says Man Li. “We can start one way and flex as we go. Right now, we’re working with AccountsIQ’s support team to consolidate and standardise some of the BI codes; it’s a work in progress as we get more familiar with the system.”

Man Li, Head of Finance, Freight Investor Services

Find out more about the benefits of cloud accounting software.

AccountsIQ offer cloud accounting software for franchises, so get in touch if you're interested in setting up a cloud accounting system.

If you're new to cloud accounting, discover our introduction to the cloud for all the information you need to get started.

All companies and organisations require reliable records and data about their finances, so that they can manage them properly, keep track of their operations, make good decisions, understand trends and forecast future developments. Modern cloud-based digital financial management and accountancy systems provide an efficient and effective way of carrying out these activities. Such systems save huge amounts of time and often perform tasks to a higher standard than the manual alternative.

A financial management system is the system used to store and manage the financial records of a company or organisation. The system holds information about financial transactions, capital and cash flow, tax obligations and any other expenses, income, assets and liabilities which are relevant to the organisation.

The importance of financial management systems 

Virtually all businesses and organisations require some form of financial management system in order to operate. If they handle money or financial assets in any form, they will need to account for the values and movements of these assets. Many financial management systems also have a wide range of more advanced features, allowing them to provide more detailed insights drawing from a wide array of data sources. This means businesses and organisations can achieve a greater understanding of their financial performance. Cloud-based accounting and finance systems work in medium-sized businesses, small enterprises, charities, public sector bodies and multinational corporations alike; every organisation needs reliable financial information and monitoring.

What challenges can financial management systems help overcome?

An effective financial management system helps organisations to understand the financial aspects of their operations, and to manage them more effectively. Having a comprehensive financial management system reduces the potential for human error, which can be very disruptive and a real headache for finance departments. Financial management systems also allow managers and leadership teams to have greater oversight of all financial activity even in larger, more complex or multi-company organisations.

The key features of financial management systems

There are a number of essential features relating to day-to-day accounting as well as higher level analysis and reporting which a financial management system should provide. These include:

• Automation: Cloud-based financial management software is automated, meaning that it automatically collates financial data, often from a large number of different sources. This means users can access detailed, real-time information easily.
• Compliance: Most financial management systems are fully compliant with all government regulations relating to accounting and tax, including Making Tax Digital. This provides peace of mind for organisations.
• Smart reporting: Cloud-based accounting and financial management systems have features which produce insights and reports based on your financial data. The best systems allow the automatic creation of smart reports, highly sophisticated analytics and intelligence, providing an in-depth view of the organisation’s performance.
• Integrated system: A modern cloud-based financial management system allows easy integration with an organisation’s bank feeds and many other applications and systems. This could be systems for payroll, invoices, CRM, expenses or timesheet management. All of this data can be brought together into one place, where users can view easily with just a few clicks.

What are the benefits of financial management systems?

Financial management systems can present significant advantages for companies and organisations looking to get more detailed and complex insights into their financial performance. Here are some of the advantages:

• Better decision making: The accuracy of the data a good financial management system provides, and the customisable smart reporting functions which provide highly detailed insights and information about a company’s financial performance.
• A single consolidated system: It is much easier for organisations and individuals to manage finances if they can access all the data and analysis they need, consolidated into a single platform and available with just a few clicks.
• Time-saving and efficiency: Manual approaches to finance, however well managed, always take a lot of time and hard work. On the other hand, cloud-based financial management software provides a speedy and streamlined alternative, saving team members time, and making their work easier.
• Legal compliance: Financial management systems usually have compliance with accounting standards and tax requirements built into them, so organisations can find in depth information in whichever form they choose.
• Detailed insights and analysis: The automated nature of modern financial management systems, and the ability to synchronise these systems with the central software platform and produce reports using different data sources.
• Customisation: Many financial management systems allow you to customise their functions according to both the needs of your business or organisation, and to the individual needs of the different individual users who will be accessing the system. This might be done through the integration of other digital business systems an organisation uses with their financial management system, or using a custom dashboard feature.

What does the future of financial management systems look like?

Technology is, as in many areas, the future of finance, and the technology behind financial management software systems will only become more technologically advanced. Artificial intelligence and machine learning are both important elements which are likely to become ever more significant parts of financial management systems. Robotics and artificial intelligence could be used for purposes such as detecting fraud and troubleshooting problems and inconsistencies.

Blockchain technology and cryptocurrency are also likey to continue to grow in importance within the finance and business worlds, and so financial management systems will need to be adapted to be able to deal with these. The systems will also need to be updated over time as new digital systems for international banking and trade, as well as new laws and regulations, are introduced.

Financial management systems FAQs

What makes a good financial management system?

A good financial management system should be capable of all the key accounting functions, such as recording invoices and transactions, as well as providing reporting capabilities. The best financial management systems will have more complex reporting capabilities, which can pull in data from a range of sources and present it in highly customisable and useful formats.

One of the benefits of cloud-based accounting and financial management is that the software allows integration with outside applications such as inventory management or expenses systems. They also have personalisation features so that you can tailor it to the specific needs of your business or organisation, whether you are a charity, a large franchise, or a public sector body.

What are the main objectives of financial management systems?

Financial management systems serve an important purpose within companies and organisations, and some of the key objectives they are designed to achieve include:

• Performing core, everyday accounting functions
• Providing companies with accurate financial information
• Producing reports and analysis of financial data
• Supporting good decision making and more accurate forecasting
• Ensuring compliance with laws, regulations and guidance

Why is a cloud-based financial management system better than a traditional desktop system?

Financial management and cloud accounting systems change how we work because they are more efficient and convenient than their traditional desktop counterparts. Cloud-based systems allow users to access them remotely, from any device, whereas desktop systems can only be used on one computer. This provides both greater convenience and less risk of losing the data if the computer breaks. Cloud-based systems also usually incorporate more automation, reducing workloads and saving time. 

Starting a finance role in a new company is an exciting time, full of potential. Make your mark and transform your firm’s finances with these seven action points for all new Finance Directors and Chief Financial Officers.

1.    Conduct an efficiency review

Many businesses waste hours of staff time due to inefficient practices within the organisation. Ask yourself:

• Does your finance department spend too much time on manual processes that are prone to human error?
• Is further manipulation in Excel usually required to analyse data or produce management reports because the system doesn’t do what it should?
• Are there other functions managed via Excel that should be automated – such as Expense Claim processing or Fixed Asset Register?

If so, your accounting system is no longer fit for purpose; it’s time to think about introducing smarter cloud accounting software capable of completing financial tasks without the need for manual workarounds.

2.    Integrate your business systems

Another common drain on efficiency is the existence of multiple, separate IT systems for different business departments.

• Does data from other systems need regular importing, meaning reports are therefore based on out-of-date information?
• Could integrated accounting software be used to improve efficiency and remove the need for double entry?

Switching to new software can be a painful process in the short term, but the long-term benefits of better integration include improved accuracy, vastly more efficient business systems, and better insight into what’s going on within the business.

3.    Transform your consolidation process

If your company is a group with multiple subsidiaries, keeping track of what’s happening between entities can be complicated – but it doesn’t need to be.

Does managing inter- company transactions and recharging costs across multiple entities or subsidiaries involve too much effort? With the right consolidation accounting software, consolidation of transactions between different divisions – even involving multiple currencies – can be handled with ease.

AccountsIQ’s cloud accounting software can help your staff save a weeks’ worth of time a month by consolidating group accounts in a simple, efficient manner.

4.    Reform your expenses system

In many companies, claiming expenses is a drawn-out process because it involves multiple departments. But it doesn’t have to be this way.

• Do your colleagues spend too long recording and submitting their expenses?
• Can you easily allocate revenue and costs across multiple periods?
• Does the approval process around expenditure result in unnecessary overspend or delays in processing invoices and payments?

With efficient expense management, it’s possible to digitise the entire expenses process, submitting receipts electronically for the attention of a line manager and tagging them to the relevant project or department.

5.    Digitise your documents and enable remote access

Electronic systems enable businesses to get things done more easily, but many companies have a backlog of paperwork and processes that aren’t yet ‘on the system’.

• Are essential documents easily stored and accessed or do they need to be manually retrieved from filing cabinets whenever required?
• Does the finance team only have access to systems and financial data when in the office? Would they benefit from anytime/anywhere access that would allow for more flexible working?

One of the many advantages of digitisation is that it enables remote working, allowing staff to access documents from the Cloud, wherever they happen to be.

6.    Improve financial reporting

Accurate, up-to-the-minute financial reporting and analysis is vital. It’s important to be able to generate reports that drill down to the finer details, at short notice, whenever required.

Does it take too long to produce meaningful report packs for the board?

• If your business has multiple entities or is in a group structure, does consolidating the results for the group involve too much effort?
• Does your finance function struggle to provide the insight, analysis and strategic advice your CEO and board requires?

If you can answer ‘yes’ to any of these questions, you will need to reform the reporting process, with the support of financial software that can give you the answers you need.

7.    Check contingency plans

If the worst were to happen, would the company still be able to function? However unlikely the scenario, it’s important to have contingency plans in place to allow the business to survive in the event of a disaster.

• Does your system provide proper backups and disaster recovery capability to allow your team to continue working in the event of a disaster?

If you’re looking for accounting software that can meet your company’s changing needs, discover how AccountsIQ can make your business more efficient.

Multi-currency consolidations are essential for group companies with subsidiaries, franchises, holding entities, or other structures in more than one country. As a growing business, it’s likely you already need to transact, account and report in multiple currencies. At some stage in your growth journey, you might even consider setting up an overseas entity.

There are many benefits of setting up locally based subsidiaries, rather than simply selling cross-border. This could be for compliance reasons or just to be closer to your customers. However, it can take you into the more complex accounting world of multi-currency consolidation.

Multi-currency consolidation can be quite complex

In simple terms, multi-currency consolidation is combining the financials of your international entities (with different reporting currencies) into a single entity (with one reporting currency).

So far so good. But other multi-currency consolidation complexities can arise. For example, within your group structure, you may also have:

• Single entities trading in multiple currencies
• Multiple bank accounts in different currencies
• Subsidiaries with a base currency that differs from that of the holding company.

If you’re using spreadsheets to consolidate all this, they’re probably bursting at the seams. Using Excel for multi-currency consolidation is also highly error prone, as there’s very little in the way of checks and balances to ensure compliance back to all your original consolidation entities. It can quickly become a bit of a nightmare.

Read our case study to find out how AES International uses AccountsIQ to automate multi-currency consolidation.

AES International is a UK financial advisory company with a branch in Dubai. They chose AccountsIQ because it could easily consolidate their multiple entities, multiple bank accounts and myriad currency transactions. 

“Multi-currency consolidation is crucial for AES International,” says Head of Finance, Wayne Copeland. “We have multiple entities and currencies to manage. We were using Quickbooks, but it only allowed consolidation in sterling and that meant the cumbersome use of spreadsheets and manual effort to consolidate the accounts."

Wayne adds;

“AccountsIQ does this automatically. We can easily run a consolidation of six companies and convert the data to any currency we need. I don’t know of any other system that can do consolidation the way AccountsIQ can. It takes the complexity out of everything and that saves us a lot of time. It used to take two weeks to do our accounts; with AccountsIQ and other improvements, we now get our accounts out in five working days.”

Multi-currency consolidation becomes even more complex as your company grows. Once ambitious companies start expanding overseas, they tend not to stand still. They venture into more new markets and set up or acquire more international entities. All these inevitable structural changes make your multi-currency consolidations even more complex and time consuming.

BayWa r.e., a leading global renewable energy provider has employees and entities across the UK and Ireland. Their Finance Manager, Justin Ampofo, chose AccountsIQ because “it was an ideal solution for simple consolidation of multiple-entities and currencies. The system’s one-click process gives our business full visibility of our overall operations without the need for complex reporting or manual consolidation.”

Find out how BayWa r.e. simplifies multi-currency consolidation with AccountsIQ

What can finance teams do to make managing multi-currency consolidations easier?

Using spreadsheets for complex multi-currency accounting will always be problematic.  However, a modern accounting system, such as AccountsIQ, enables you to achieve major efficiencies in your accounting practices.  It easily consolidates multiple entities, multiple bank accounts and multiple currency transactions and it produces consolidated management reporting packs.

With AccountsIQ, you can consolidate accounts across your Group in seconds, even with different subsidiaries operating with different currencies. You also have real-time access to your consolidated results from a single system. It completely eliminates the costly and error-prone workflow practices you have to endure when you try to consolidate from different systems and spreadsheets.

Getech is a global geoscience and consultancy group, primarily working in sterling and US dollars. “We previously managed multi-currency accounting in Excel,” says Financial Controller Simon Brown. “Consolidation was a logistical nightmare."

“Now, with AccountsIQ, the exchange rates are held centrally in the system. This ensures all subsidiaries in the group use common exchange rates. AccountsIQ’s currency revaluation feature creates an automatic routine in the system which ensures accuracy in the calculations and reporting. AccountsIQ saves me a week’s worth of work every month end.”

Read our case study to discover why Getech switched from managing multi-currency consolidation in Excel to AccountsIQ

How multi-currency consolidation works in AccountsIQ

Once set up, the multi-currency consolidation process is simple and it takes less than a minute to consolidate data from multiple subsidiaries with one click. You can deploy AccountsIQ’s Consolidation Module as a stand-alone reporting module; this involves importing Trial Balances from other accounting systems and then consolidating the data in either standard system reports or Excel-based reports. Alternatively, each subsidiary can use AccountsIQ as its primary accounting system and link into the overall group structure for consolidation purposes.

AccountsIQ's enhanced BI coding structure allows you to tag all your company’s transactions to specific projects, divisions, cost centres, departments, locations or funds. It’s completely flexible, so you can customise up to six dimensions for each BI entity based on your own business needs and get the financial reporting insights you need.

‘Business Intelligence (BI) Code’ is a proprietary AccountsIQ term that describes any business ‘entity’ in your organisation. That entity could be a department, location, activity, asset or project; it’s not restricted to legal entities, such as limited companies. Many accountants may be more familiar seeing ‘BI code’ described as ‘department code’.

Our BI coding and six dimensions structure enable you to gain detailed insight into the financial performance of all the operational elements across your organisation, quickly and easily. By prioritising clear, detailed, and real time analysis, senior managers can make better, faster and more informed decisions.

Key points about BI codes in AccountsIQ’s cloud accounting platform:

• BI codes are simply capture codes
• They enable multi-layered data analytics
• You can also track, analyse and report at group level
• The set up can flex to meet your reporting needs
• You can align the BI mapping with your other business systems
• They can be used as a tagging mechanism to isolate transaction types

Our BI coding structure enables detailed business analysis

We’ve designed our BI coding structure to enable you to analyse your business performance in numerous ways. The analysis you gain goes way beyond the standard, single company-wide Profit and Loss, Sales and Balance Sheet view. You can quickly compare the performance of different:

• Locations or branches
• Customer categories, such as retailers, wholesalers or Internet resellers
• Departments or departments within each location
• Product types
• Activities, such as Sales, Marketing and Operations
• Projects
• Funds or Special Purpose Vehicles (SPVs).

With AccountsIQ, you can analyse your business performance in many different ways. You can set up specific business entities as “Business Dimensions.” AccountsIQ enables you to set up to six Business Dimensions, such as Locations, Customer Categories, Departments, Products, Activities or Projects. For example, if you set up Location as a Dimension, you can then allocate unique BI codes to all your Locations within that Dimension to identify each one.

How do customers benefit from using BI codes?

Customers use AccountsIQ’s 3-level GL structure and BI layer to produce accurate reporting for detailed, granular analysis.

For example, Tindle Newspaper Group is currently using four dimensions: Entity, Division, Publication and Department. They find it quick and easy to slice, dice and customise reporting across all these dimensions. They can also add new dimensions, such as Property, to monitor and analyse capital spending.

Delivering insight: the right management reports at the right time with valuable information

Today’s boards and senior leaders have a thirst for insights that enable them to make good decisions. They want financial reports that provide transparency and act as an early warning system for both business risks and opportunities.

However, too many finance teams still spend too much time on low value-added activities. Often, they struggle to translate raw data into useful, user-friendly reports. But it doesn’t have to be that way.

With AccountsIQ, you can:

• Choose from a suite of around 300 pre-configured management reports
• Create your own bespoke reports
• Access real-time data direct from the dashboards
• Produce detailed reporting packs in minutes
• Consolidate your data and report across your Group in one-click
• Communicate in-depth analysis in interactive charts and KPIs
• Turn your finance team into your board’s trusted business adviser.

What’s the one thing that property management companies and REITs can change about their business to become more efficient? Discover how installing the right property management accounting software can save time, streamline reporting and allow your company to take a more strategic approach to business.

Challenges faced by property management companies and REITS

Property management companies must maintain good relationships with both landlords and tenants. Working on behalf of landlords to manage real estate properties – securing tenants, gathering rent, handling property maintenance and carrying out other property management tasks – they must bring in an income for the landlord and ensure that the property is performing to its full potential.

Real Estate Investment Trusts (REITs) are accountable to their investors, who put money into income-generating properties, such as shopping centres and offices. Using these investments to acquire properties, REITs must then make the right decisions in order to lease properties out to tenants, making a profit on the rents and paying dividends to investors. Like other asset management companies, they must generate an income for their investors, act within the relevant regulations and keep scrupulous records on the performance of all their real estate assets.

The accounting needs of property management companies and REITs

Property management companies and REITs have their own specific accounting needs, but finance software isn’t always set up to accommodate these. Routine accounting tasks for property management companies include:

• Producing recurring invoices for tenants, using property management software such as Landmark or Qube
• Allocating costs to different properties
• Consolidating accounts, using multi-compnay accounting software
• Analysing the performance of different properties in the portfolio, and measuring this against KPIs.

These can all be automated with accounting software that’s tailored to the needs of a property management company or REIT.

Case study: how Hibernia REIT saved a day a week in data entry

Hibernia REIT is an Irish Real Estate Investment Trust specialising in commercial offices. The company has over 30 properties in its portfolio, and is required to provide a range of different finance reports for investors and regulators.

The problem: When it launched in 2013, Hibernia REIT had clear ideas about its accounting needs. For maximum efficiency, the company needed to integrate its accounting software with Landmark, its property management software, and Kefron, its document management package. The group also required an accounting system that could consolidate accounts across its subsidiaries and produce detailed, bespoke reports.

The solution: Integration of AccountsIQ software with Landmark and Kefron, together with the automation of consolidation, invoice processing and other key tasks, has made the group significantly more efficient. Saving a day every week that would have been spent on data processing, the company can spend its time on data analysis and strategic thinking, with the aid of detailed reports available at its fingertips.

Transform your accounting function with AccountsIQ

Fast-growing property management group, G2M, has chosen AccountsIQ as their new finance system. G2M’s CFO, Pedro Dalton, outlines how, with AccountsIQ, they’re finding it easy to automate key processes, integrate their tech stack and deliver vital business intelligence. 

As a high-growth business, G2M also identified the need for comprehensive, granular business intelligence they can rely on, to inform their strategy and decision-making. 

“We need to extract key financial information on a property-by-property basis and combine it with data from other departments and teams. AccountsIQ’s open API structure enables us to integrate other apps, and even our own proprietary software, to deliver the tailored financial information the business needs.”

“AccountsIQ has helped transform our finance function in the short term through its simplicity and ease of use. In the longer term, its ability to operate as part of our wider software solutions will be key to the G2M growth story.”

Find out more about AccountsIQ’s Property Management Accounting Software.

What are SPVs?

Special Purpose Vehicles (SPVs) – sometimes known as a Special Purpose Entities (SPEs) – are subsidiaries created by a parent company. They are separate legal entities with their own assets, liabilities and accounting and audit requirements.

They’re often referred to as “bankruptcy-remote entities”.  That’s because the entity is formed to develop, own and operate a special business, project or asset while isolating financial risk and minimizing bankruptcy risk. So, if the activity of the SPV goes south it will not bring down the group into bankruptcy.

Setting up SPVs as part of a structured accounting process

There are many commercial reasons for establishing an SPV, including:

• Managing investment portfolios, such as private equity or other investment funds, property, aircraft, retail units with bank borrowing or leases, and crypto-currencies.
• With global climate change initiatives, they are increasingly being used for managing assets in the renewable energy sector (such as wind or solar farms).

The SPV Past

In the past, the flexibility of SPVs has meant they were vulnerable to misuse. There were some particularly infamous cases around the time of the financial crisis. However, with effective risk management and appropriate transparency, they can be highly beneficial investment tools. In fact, according to PwC:

The future of SPVs depends on their ability to offer clarity to investors and constantly balance risk.”

How can CFOs manage the risks of SPVs?

The responsibility for building the capability to assess, monitor and report on risk factors generally falls to the finance team. And, with a complex SPV structure, that’s a major accounting headache.

How finance leaders are more effectively managing SPV accounting: 

1. Automating up to 90% of manual SPV accounting tasks
Let’s take a private equity firm as an example. Each fund you manage could be an SPV, or a series of funds could be managed in a single SPV. Each year, the finance team has to revalue every fund, taking into account management fees, overheads and other expenses. In addition, throughout the year, they have to handle currency recharges and allocate spend against each fund or series of funds.

The manual data entry involved can be huge. Even simply capturing the invoice data from third-party suppliers can be a time-consuming headache, when those invoices are scattered across various email inboxes. There’s also the added complication of co-ordinating multiple bank accounts.

These tasks are ripe for automation. A SaaS accounting platform with OCR (Optical Character Recognition) technology can digitise invoice processing, automate a tiered approval system and store all the data securely on one central platform, with full banking integration for auto-reconciliation. We’d estimate that around 90% (at least!) of manual day-to-day SPV accounting tasks can be fully automated.

Here’s what Rob Shaw, CFO of Apera Asset Management (an AccountsIQ customer) has to say about automating day-to-day accounting tasks:

Everyone can photograph, upload and record their own expenses, which feed directly into the accounting system, everything is electronic and it is zero paper.  It is much easier for me to review from anywhere and, although I still want to manually review line-by-line, the admin-heavy part of the process is automated, making it easier for everyone.”

2. Consolidating reporting across multiple SPVs
Consolidated reporting is an absolute must for any CFO managing multiple SPVs. If you’re having to go off-system to manipulate data in Excel it could be taking up to a week of your time every month. One-click consolidation alongside quick and accurate FX re-evaluations, multi-dimensional reporting, inter-company management, budgeting and forecasting is a major time-saver.

With AccountsIQ, your finance teams can securely view the accounts of all your SPVs (including calculating minority interests) in real-time, on one platform. Finance Directors can consolidate reporting for all SPVs in real-time and in multiple currencies across multiple jurisdictions. It’s also specifically designed to meet the accounting needs of many businesses from start-up to maturity, enabling quick and easy set-up of new SPVs or other entities in just a few minutes.

Previously, Apera’s group consolidation was done in spreadsheets: data was exported from various systems and in different currencies, then brought together in Excel. AccountsIQ’s consolidation software means there is no fiddling around in spreadsheets trying to get things to tie. Working in Excel was not sustainable; before AccountsIQ, we had instances where we were struggling to get these reports right, sometimes until 2 a.m.”
Rob Shaw, CFO of Apera Asset Management

Watch our video for a 2-minute overview of how consolidated accounting software can help CFOs and their teams save time 

3. Creating extensive and accurate Business Intelligence reports to enable confident, informed decisions

Finance Directors also need to deliver timely and accurate financial reports to the Board and other stakeholders. These could take the form of a management pack, dashboard reports or PowerBI reports. To feel confident that you’re reporting ‘one version of the truth’ across your portfolio of SPVs, we recommend you ensure your accounting software includes:

• Continuous consolidation to ensure the performances of all SPVs are visible at any time
• A flexible design where each SPV (or other entity) has its own individual database
• Multi-dimensional analysis
• Flexible reporting with drill down capability
• Excel Add-In and open API integration with PowerBI and other business systems (such as Salesforce or other CRM, payroll and expenses).

When you have less ‘noise’ in your finance system, you get much better visibility of financial performance. This makes it easier for CFOs of complex, multi-SPVs to monitor, assess and manage risk across their portfolio. Richer reporting also clears the way for better informed and faster decision-making.”
Darren Cran COO, AccountsIQ

Implementing a new accounting system is no small task but with the proper planning, leadership, and implementation schedule, you can ensure a smooth transition from your old system, while also setting yourself up for future digital wins. A new accounting system can ultimately lead to greater efficiency in your finance function and a better accounting process overall. We’ve been doing this for over 10 years and know how – and how not – to make the switch. Here are our insights from our experience with hundreds of clients in the right way to go about a new accounting system implementation.

Take your time to plan your new accounting system implementation 

It’s often said that any successful project is 80% planning and 20% doing. This is as true for a new accounting system as it is for any business process. It’s best to dedicate plenty of time to you system requirement. Here’s a few ways to focus your planning and set yourself up for success:

Identify your “Project Lead”. Ensuring you have enough internal resources to cover the implementation. This should ideally be someone who knows the business well and is acutely aware of its processes and existing systems. This person should also have sufficient authority to direct the rest of the team and get the internal staff on board with the change.

Do your pre-sale research & due diligence. Make sure that you understand your technical requirements and can validate that these will be fulfilled with the product you’re moving to.

Identify key stakeholders and gain their buy-in and involvement early on. This includes process owners in different departments. Communication is key so make sure your planning involves not just the finance team but purchasing and sales, as well. This is where your project lead and pre-sales come together to get the rest of the business on board and focused.

Engage with the consultant who’s going to help you onboard. Whether we are handling the implementation directly or the project is being managed by our trusted implementation partners, our consultants will agree the Chart of Accounts, BI codes, user profiles, and consolidation requirements during the design process so it’s clear what needs to happen when we move on to the build. (See the typical finance system implementation project plan below.)

6 things to prepare before you begin the new accounting system implementation process

Getting ahead of comprehensive documents before the accounting system implementation begins will save you time and energy – ensuring a punctual and well-budgeted implementation.

Gathering information and checking it’s accurate will ensure you’re ready to enjoy your new system immediately. Some important things to prepare include:

1. Chart of Accounts structure 
2. Subsidiary structure 
3. Tax and regulatory requirements 
4. User information and roles 
5. Data clean-up 
6. Data migration.

Tips for a successful implementation

At Accounts IQ, we offer post-implementation support to ensure that your new accounting system is up to scratch. We are available should you have any questions about the software and can also run training sessions to ensure your team is up to speed. We can also help you to benefit from various integrations with your new accounting system such as payroll and HR. After all, we want you to get the most out of your software and are always on hand to help.

Start with your reporting requirements

This is a great opportunity to review your chart of accounts and reporting needs. We find that the best way to approach this is to start with your outputs and bring it back to what your new chart of accounts and BI structure need to look like. It’s a great opportunity to ensure your data represents you business and reporting requirements. AccountsIQ’s extensive BI Structure can accommodate up to six dimensional levels, but that doesn’t mean you need to use them all right away. In fact, this is where delays often come in. Start with 2-3 dimensions to get you going (e.g. departmental or location structure) and see what AccountsIQ is capable of. Then think about adding other dimensions in future phases 3-6 months down the line. (More on this below.)

Choose your timing

Choose a time that suits your business and internal resources. Some convenient timings that we can recommend…

• Year end – not essential but often a preferred cut off for audit reasons.
• End of VAT period – once again not essential with AIQ but less data to migrate.
• Any time of the year that’s less busy – this is key to ensure resources are available to drive the project forward.

Import what you need and remove the need for running parallel systems

There’s no value in bringing across past transactional data. We suggest you start with an opening trial balance and bring in monthly movements for reporting purposes. This way you can still achieve comparative BI reporting while avoiding the need to run parallel systems. We have upload templates in place to make it straightforward to import the essential data needed for comparative reporting.

Give your project lead time and scope to do this well

Whatever the size of your business, the project will require a decision maker. Make sure your project lead and key stakeholders have the time and scope to focus on the tasks at each stage. Implementing a new accounting system takes time, whatever the size of the business, and it will take longer if your project lead tries to do this as well as a full-time job. Give your people the opportunity to focus on the tasks at each stage of the process.

Implement in phases and celebrate successes

For many of our customers, a new accounting system is part of a bigger programme of change and AccountsIQ has a substantial range of modules and integrations to support these changes. But don’t jump into everything at once; think about the sequencing. Follow the principles of good change management: implement in manageable phases, review what did and didn’t work well, celebrate successes, then move on to the next phase. The implementation will be much smoother and more enjoyable if you nail your core requirements first, get to know the system, and enjoy the sense of achievement that comes from clarity around your data and how the system works. You can then prioritise future changes based on business benefits and move onto the next phase with ease.

You can see how a phased implementation can work in our Hampshire Cultural Trust case study where we set out the core financials in phase 1, then added ticketing, EPOS, and payroll in phase 2.

We’ve got a fantastic product and the implementation team has been very good, particularly with our management accounting project. My mantra is ‘making finance valued and valuable’. With AccountsIQ, and a great team at HCT, we are making that happen”
Charlie Inigo-Jones, Director of Finance, HCT

Don’t build your new system around old processes

A new accounting system is a great opportunity to review your processes and adapt them to the new system. The automations, integrations and business intelligence afforded by AccountsIQ removes the need for the manual processes that plague legacy systems. Your accounting software can play a part in a broader finance digital transformation that will set you up to realise the huge benefits of Cloud accounting.

We realised we had come to develop our processes around the limitations of the Exchequer system rather than using the system to improve processes”.
Group Financial Controller, Kefron

Finance system implementation project plan

Below is an example of what a typical finance system implementation project plan looks like and how we work with our clients every step of the way. Each stage is dependent on successful completion of the previous stage. That’s why design and planning is so important. You’ll also see that we don’t focus on digital wins until completion of this first phase. Again, getting the core financials in place, staff trained, and the system embedded in your finance team are important steps before moving on to new features.

We can typically get the core financials up and running within four weeks, and sometimes faster with the proper planning. For example, charity Artichoke Trust made the switch from Sage Financials to AccountsIQ in just two days even with their unique project accounting requirements.

The elements that have really made a difference are AccountsIQ’s innovative implementation of analysis codes, the attaching invoices, and the bank reconciliation module. These are things I didn’t have before, and they work beautifully. These features have made the biggest difference to the way I work, giving me all the information I need.” Neil Goulder, Finance Director, Artichoke Trust

Common issues with implementing a new accounting system 

Lack of clarity. This is why planning is so important. If you don’t know what it is you’re trying to achieve, then there’s no sense of what defines success. Be clear about your goals.

Lack of authority. Make sure your project lead has the knowledge to own the project and the space and time to actually lead.

Scope creep. Don’t take on too much too soon. Avoid unrealistic expectations about what you can achieve in the first iteration. Start with something achievable, celebrate your wins, and then add new features in phases.

Distractions. You have a business to run. Don’t underestimate how other company activities can interfere with your implementation. Plan the implementation at a time when you can really focus on it.

Time. In line with the above, make sure you’ve allowed enough time to finish the implementation completely and accurately. Also allow sufficient time for staff training so that users can enjoy the full benefits of the system.

A new accounting system implementation can seem daunting, but with the proper planning it’s very doable. We have the experience, knowledge and support to help you every step of the way.

AccountsIQ’s financial management software for mid-market businesses has developed AIQ Academy, a new e-learning resource, to make it easier for users to access “just-in-time” training on how to use the product for both new and existing users.

AccountsIQ has invested in AIQ Academy at a time when our customer base is rapidly expanding and in need of access to digital training. The number of users needing to be trained has increased exponentially in the last 3 years. With an ever-increasing number of software and integration partners, and a significant increase in the number of new customers adopting AccountsIQ Financial Management Software, it is a great time to provide a comprehensive e-learning platform that users can access on-demand.

Darren Cran, Chief Operating Officer, AccountsIQ explains,

With AIQ Academy we are able to deliver extensive expert user training from a single online platform. This means our users can access e-learning that is concise and at a time convenient to them. AIQ Academy will enable us to fast-track training and will make a big difference to the speed of onboarding new customers.”

Covid-19 aside, on-site and webinar-based training remains hugely valuable and popular, and our e-learning platform is a great addition, providing users with the ability to self-serve and carry out their training as and when they wish.

Darren adds,

With AIQ Academy we provide role-based learning pathways; essentially training designed specifically for each user’s needs. The courses are function-specific and enable everyone to access meaningful training based on their job function, from bookkeeper to finance director.  It also allows very focused training modules for more complex areas of the system like Consolidation, FX and Inter-Company while also providing quick learning paths for the Lite users of approval workflow or expense capture for company-wide roll out.  You can even get a report of users that have accessed and completed training.”

AccountsIQ assigns the learning paths based on the job role, providing the necessary training at each level. Progress and certification levels can be tracked, meaning both AccountsIQ and the customers themselves can see the knowledge and understanding of the product gained by their users.

With over 100 video-based training courses, AIQ Academy has been a labour of love, with the main overarching aim of improving customers’ skill levels and maximising the adoption of new features within our customer base.

It’s important to us that customers can use the functionality they’ve purchased, hence why driving product understanding and adoption is vital.” Darren adds.

AIQ Academy is powered by LearnUpon’s LMS platform. AccountsIQ has partnered with LearnUpon as they are a leading e-learning company widely used in the SaaS industry and by numerous fintech clients.

Integrated accounting allows you to bring together your business systems so that they work together to improve the flow of information and reduce your operational costs. The benefits of an integrated accounting system can add up to a radical transformation of your finance function. In this article we explore the advantages of integrated accounting systems and when integrating may be the right choice for your business.

Features of an integrated accounting system

Integrated accounting allows you to connect all of your business systems so that they work together seamlessly. In the past, businesses used separate tools for separate purposes… accounting, invoicing, sales, customer management, and so on. Managing all of these different data streams and ensuring consistency across reports was resource-intensive, often inaccurate, and frustrating.

Cloud-based accounting platforms like AccountsIQ have changed all that. Our Open API allows us to easily integrate with other Cloud-based apps. Integration means you can automatically populate your accounting system and others, effortlessly and accurately.

Here’s a few examples of the types of systems we can integrate with:

• Electronic banking systems. Save time with automated bank reconciliation, and gain insight into cashflow and payment planning.
• Optical character recognition (OCR) technology like Kefron, Lightyear and AutoEntry. Automate document and invoice capture and eliminate the need for manual data entry.
• CRM Systems like Salesforce. Link sales to finance, with everything in the customer pipeline from billing details and key contacts to invoicing and contracts. The integration goes both ways, giving both the sales and finance teams a consistent view of the data – a single source of truth.
• Sales systems like EPOS and POS. AccountsIQ syncs directly with the source data. Gain better visibility of weekly and monthly gross margins and profitability across the business and for individual branches and locations.
• Billing systems like Fusebill to automate subscription billing, streamlining your billing workflow, saving time and improving agility.
• Payroll systems like BrightPay that help save a lot of time on payroll administration.
• Credit control systems like Chaser to automate invoice chasing and streamline the accounts receivable process.
• FX Payment Services like TransferMate. Benefit from seamless international payments: all FX processing can be done as part of a payment run directly from AccountsIQ at preferential exchange rates.
• Business intelligence reporting like Power BI. To complement our own suite of reports and dashboards, AccountsIQ also connects to Power BI through an OData connector, which enables users to adapt layouts to their own reporting needs and graphically represent any analysis they want to do in AccountsIQ, in real time in Power BI.
• Any system with an Open API. The API means integration possibilities are endless. If you have an in-house system built on an Open API, we can connect to it.

When should you consider accounting system integration?

Integrated accounting is ideal for businesses who stand to save a significant amount of time and costs otherwise spent on manual tasks and data entry. If you’re only dealing with a handful of transactions per month and it only takes 10 minutes to download and upload them manually, then it may not be worth the effort to integrate. But if you’re dealing with thousands of transactions, issues such as data integrity, data processing, and manual entry can take a lot of time and cause a lot of headaches. So, ask yourself…

• Why do you want to integrate your systems? Are you doing duplicate work? Do you have a lot of data that makes manual input unfeasible? Are there mistakes in your data?
• What do you want to integrate? There are plenty of possibilities here, consider whether the integration really relates to the finance function. Will integrating allow you to maximise the value delivered by each integration?

What’s involved in accounting system integration?

We have a growing network of integration partners which makes it quick and easy for customers wanting to integrate software applications that we already support. Where an integration is required with a new platform, extra work is needed to define the data fields that need to be mapped to the accounting system. Some of our customers seek our help with integrations, others do it themselves or hire a third party.

Using AccountsIQ’s API integration means integrating with another cloud system is relatively straightforward. We provide a full set of documentation on the functions available and connect client’s IT teams with our developers who will help with any questions. We can then provide access to a staging environment where test integrations can be tried out.

Integrations are frequently requested and we’re very happy to talk through the options and assist with those appointed to carry out the work.

Timing If you’re going live with a new accounting system, it may be tempting to set up the integration at the same time. However, we recommend waiting until the new system is well bedded into your finance team. Any integration is only as good as the foundation that it is built upon. If your accounting software isn’t running smoothly, then a new integration can potentially add further problems. It is best to get the base accounting system up and running, the finance team trained, and any adjustments ironed out before starting an integration. Portswigger are a recent client who came on board AccountsIQ because of the  integration capability with their in house CRM and OCR technology software, AutoEntry.

The integration and the API are what we’ve really been happy with. We have developers in house who roll their eyes when you talk about the other larger accounting software vendors because they are so cumbersome. Our team found it really easy working with AccountsIQ to get it all up and running. That’s what really sold us.” – Helen Macdonald, Finance Manager, PortSwigger

Advantages of integrated accounting systems

Integrated accounting has grown in popularity alongside the boom in cloud-based accounting. This movement was accelerated by the Covid-19 pandemic which forced businesses to move away from outdated processes and embrace efficiency. Now, most of our customers don’t see integration as an optional add-on, but rather a requirement and essential part of their finance function. We now have a long list of software integration partners, and are constantly adding new ones. Better still, every time we create an integration development partner for one of our customers, that integration becomes available for everyone. Now, even for customers like charities and schools with very specific reporting needs, we can quickly deploy integrated solutions to meet those needs and realise the advantages of integrated accounting systems. These advantages include…

Maintain data integrity through your inputs and outputs

When quality data goes into your accounting system, you get quality data out of it. Integrated accounting makes it possible to automate all of the input and ensure that the data across all of your systems are consistent. This level of accuracy brings an extra layer of assurance to your reporting, the so-called ‘One Version of the Truth’.

Scalability through automation

Cloud-based automations provided by AccountsIQ and our integration partners make it possible for businesses to scale quickly, which is one of the reasons why many fast-growing companies use AccountsIQ. For example, connectivity provider, Asavie, switched to AccountsIQ when it began working in multiple currencies. AccountsIQ integrates with Concur, Asavie’s preferred tool for automated expense management, providing better business intelligence software and a more streamlined process, both crucial to supporting their growth.

AccountsIQ solves so many problems for businesses like ours; it can be configured to tackle quite complex accounting issues but without the overheads and ongoing costs associated with some of the vendors at the higher end of the market.”

Emma Whelan, Financial Controller, Asavie

Free up time for value added tasks

Cloud accounting and integrated systems are dramatically changing the way accountants work for the benefit of both the business and their own pleasure in the task at hand. Previously, accounting functions such as VAT returns and bank reconciliation were laborious and time intensive. Now, computers can do most of the manual work and accountants can be better utilised. Rather than mundane tasks like admin and data entry, accountants can now focus on reporting, trends and advisory work.

Reduce costs and eliminate bottlenecks

Of course, the added benefit of these time-saving automations is a reduction in operational costs otherwise spent on manual tasks. Even better, that time saved can be spent on making the business more profitable, and because of the inherent scalability of AccountsIQ, you can maintain your finance department without having to hire extra manpower to get the job done.

An accounting solution that’s constantly evolving

We’ve recognised a huge demand from our customers in accounts payable and purchase ledger automation software. We already integrate with related AP tools such as Kefron, Lightyear and AutoEntry, but are currently in the process of creating this core functionality within AccountsIQ. This new feature will allow finance teams to send attachments such as invoices to a nominated Inbox which will be automatically processed by AccountsIQ. We anticipate that our customers will be able to get 90% of the purchase ledger done through this process. We’re constantly evolving AccountsIQ with new features and new integrations to make sure our customers have an accounting solution that’s as seamless and efficient as possible.

Further details about APIs and why should accountants care and integrated accounting software.

Book a demo to see how AccountsIQ can automate many of the day-to-day finance processes, help you collaborate easier with the wider business and accelerate your finance function.

In a recent report, “Group Finance Reporting”, we highlighted the importance of performance management reporting in leading finance functions and illustrated the challenges around getting a single version of the truth in terms of accurate data.

Why are CFO reports important?

Financial reporting is the most efficient way to track how a business’s finances are being used and managed.

Whilst different reports contain specific types of financial information, all reports are essentially produced to provide an overview of a company's financial situation and overall performance.

CFO reports are often intended for internal use, such as planning for future goals or updating management with clear and concise financial trends. They are also used by external entities, such as lenders and investors, who may need insight into the company’s financial status.

This article continues the theme of reporting excellence and we highlight nine reports every CFO in a leading finance function should be presenting. Of course, specific metrics will apply from sector to sector, but the themes remain.

1. Cash and cashflow forecast
2. OKR reporting (objectives & key results)
3. Risks reporting
4. Sales forecast or pipeline
5. Consolidated & segmented P&L, balance sheet and historic cash flow
6. Product/sales mix & concentration
7. Segmented gross margin/contribution
8. Customer behaviour
9. Internal productivity

1. Cash and cashflow forecast

Unless you’re sitting on large cash reserves that just keep growing, cash flow forecasting should be right at the top of your list! Reporting on, and discussing, cashflow; current cash position and future expected net cashflows, along with timing, is paramount. This should include a medium-term view and a short-term, say 60 or 90-day, view of cash.

Too few SMEs are doing this and even fewer are doing this properly. A medium-term forecast should absolutely be integrated with cashflow, P&L and balance sheet forecasts. The shorter 60 or 90-day forecast can be a one-sided cash-only view, but obviously needs to be reconciled to the opening balance sheet position.

2. OKR (objectives & key results) reporting

Some OKR (objectives & key results) reporting may be embedded in other reports but in our experience, this is very poorly reported. It doesn’t need to be in an OKR format but reporting on specific business objectives progress is paramount. Often specific project initiatives are set up to meet shorter term objectives and so reporting on these separately is often the best way to focus on them.

Less than 50% of FTSE100 companies align their reporting with their objectives; this number is much lower in SMEs and we can’t reiterate enough how important this is to support your strategy.

3. Risk reporting

Traditionally, this may not be an area that finance has owned. However, with the savvy CFO acting as chief steward and moving into the role of Chief Performance Officer, then ownership of risks around performance improvement should certainly be part of that remit. In most SMEs, financial risks are present and so it’s a natural extension for the modern CFO to report on these and wider risks.

A register containing business risks, likelihood rating, impact to the business rating, along with proposed mitigating response to the risk should be reported. Early awareness of risks is often enough to set the right plan in motion to weather the storm.

4. Sales forecast or customer pipeline

This reporting focuses on where future sales are coming from – in your business that could be your sales forecast or your customer pipeline.

While financial numbers on here are relevant and feed into your overall cashflow forecast, the important aspect of this is the number of customers, who they are (in a B2B world), probability of conversion, when they will materialise and the value.

5. Consolidated & segmented P&L, balance sheet and historic cash flow

The bread and butter of every CFO reporting period, de facto. Past performance, particularly segmented, is very useful to understand high performing business units, products, channels, sales persons etc. Understanding past performance while still looking forward can absolutely support management in making better, more informed decisions. However, the key to learning from the past is through segmentation.

We’ve seen limitations at both ends of the spectrum – dis-aggregated and aggregated information. It’s important to have both – a financial consolidated view top-down and the ability to drill into sufficient segmented detail to get a deeper understanding of what is working and what is not. Like all reporting, it’s all about applying smart changes to the business.

6. Product/sales mix & concentration

This is really a sub section of the consolidated and segmented P&L but going even deeper into product/sales mix & concentration will give you a lot more insight into what matters – how to grow your top line and what is working well with customers.

7. Segmented gross margin/contribution

This is a really important one when benchmarking different parts of the business – whether that is business units, locations, channels, sales team etc.

Understanding gross margin at a segmented level helps you first identify which parts of the business are providing greater contribution and when using it to benchmark, apply lessons from top performing parts to lower performing parts of the business, and thus raising the overall average across the business.

8. Customer behaviour

Customer-centric reporting is key to focusing on performance. In a B2B business that’s specific on customers and debt. In a B2C business that could be more focused on repeat orders or customer acquisition channels.

In both, it could be customer acquisition cost, churn, new customers, customer satisfaction or NPS score. The point is, your performance reporting should include some form of customer reporting to better understand your customer behaviour.

We once worked with a FTSE 250 company that couldn’t tell the global spend by customer. Don’t fall into this trap!

9. Internal productivity

There are many ways to measure productivity and they will differ by type of business and sector. Nonetheless, it’s something that should be reported on and monitored. Again, even within the business, benchmarking is a powerful way to learn more about successful and efficient processes, people and departments. Understanding this leads to better decisions and overall business improvements.

Conclusion

While the above covers the reporting themes we would expect to see in a leading finance function, it is also worth highlighting a few areas that separate the typical finance function from a leading one:

• ability to report on more than just financial numbers;
• mashing financial & non-financial metrics together to enrich the information;
• moving up the reporting maturity curve; and
• proportionately spending more time on understanding and decision-making rather than preparing the reports.

The purpose of all of the above is for the management team, C-suite or even the Board to make better, more informed strategic decisions.

Interestingly, there is a good mix of future looking and historic looking reporting, along with a mix of financial and non-financial reporting.

Press Release

19.2.21 Dublin and London – AccountsIQ, a leader in Financial Management Software (FMS) for mid-market SMEs with multiple subsidiaries, branches and locations, today announced it has secured a €5.8M investment from UK- and-Netherlands-based venture capital firm, Finch Capital.

Developed by a founding team of chartered accountants with over 100 years’ combined experience in implementing finance systems, AccountsIQ addresses problems faced by businesses operating across multiple different locations, currencies and jurisdictions. Medium-sized businesses growing through franchising or multinational subsidiaries can use the cloud-based AI-driven FMS to streamline and automate the capture, process and reporting of their financial performance across all business units.

Rob Shaw, CFO of Apera Asset Management moved from Xero to AccountsIQ in 2018, when the company was growing and its existing accounting software was not scalable:

I was looking for a Xero equivalent but more turbo-charged in its ability to consolidate across seven entities, handle foreign exchange and group accounting and reporting across multiple jurisdictions. AccountsIQ ticked more boxes than other systems designed for businesses like ours.”

AccountsIQ saves time and money for businesses and partners spanning industries from financial services to renewable energy, hospitality and not-for-profit, who need to consolidate their global results.

The combination of Brexit and Covid has led businesses to reconsider their regional presence. Previously, businesses looking to expand or franchise internationally would have to implement complex and expensive systems to manage these operations. Now they can do it all with a cloud-based, scalable and affordable FMS solution” said Tony Connolly, AccountsIQ CEO and founder.

“We built AccountsIQ as a cloud solution to make it easy for individual entities to manage local finances while providing instant group-wide control and analysis of results.”

“In the Cloud accounting software market for professional services, the systems are either too low in functionality or too complex and costly to maintain”, said Tony Price, partner at PwC UK, which adopted AccountsIQ to deliver its MyFinancePartner service in 2014. “Our challenge is to provide a consistent service to small but growing businesses dispersed across the UK and around the world. AccountsIQ’s solution uniquely gives businesses a secure and robust accounting solution to support growth and expansion.”

AccountsIQ’s full-featured FMS is unique in providing Business Intelligence to give “one version of the truth” to multi-entity businesses: it handles complexities such as sub-groups, multiple currencies revaluations, inter-company transactions and minority interests. It also uses artificial intelligence and an open API strategy to automatically synchronise bank accounts, generate electronic payments, auto-post electronic invoices and integrate front-end systems with easy approval workflow and expense capture via smartphone.

Aman Ghei, partner at Finch Capital, comments:

In today’s dispersed world, AccountsIQ’s focus on serving businesses growing locally and internationally, has never been more relevant. As investors in companies that are shaping the future of finance we are excited to back this established executive team and award-winning product. We look forward to supporting AccountsIQ through its ambitious plans for rapid growth and expansion.”

See AccountsIQ in Action 

Watch our on demand Webinar on Multicompany Accounting, Consolidation and Reporting

About AccountsIQ

Launched in 2008 in Dublin, AccountsIQ’s award-winning cloud-based FMS simplifies how multi-entity businesses capture, process and report their results. It provides anytime-anywhere access to dynamic businesses, growing via subsidiaries, branches, SPVs or through a franchise model. Its unique architecture allows it to consolidate thousands of entities in a group. Its open API allows integration with 3rd party software and its already integrated with TransferMate Global Payments, BrightPay, Kefron AP, Chaser, Concur, Salesforce and ISAMs.

Today, AccountsIQ is used by 4,000 businesses across 85 countries. Blue chip partners and customers across a range of sectors enjoy worldwide 24/7 access to top level FMS functionality and smartphone apps, delivering comprehensive consolidated results and a superior level of business insight. AccountsIQ was awarded Enterprise Accounting Software of the Year 2019 and 2018, was a finalist in 2020 and has been ranked in the top half of the Deloitte’s Technology Fast 50 high growth index for the past 6 years.

About Finch Capital

Founded in 2013, Finch Capital is a series A/B investor in high-growth financial technologies companies run by exceptional entrepreneurs. Our mission is to fund and support the best entrepreneurs creating products that will shape the future of finance. We have a track-record of backing future industry champions including Aylien, BUX, Brickblock, Brytlyt, Fixico, Fouthline, Goodlord, Grab, Hiber, Twisto and Trussle. Finch Capital consists of a team of 12 investment professionals with wide entrepreneurial experience (e.g. Adyen, Deliveroo, Deepmind), prior investment experience (e.g. Accel, Atomico, Egeria) and industry backgrounds (e.g. Facebook, Google and McKinsey), located across offices in Amsterdam, London and Jakarta. Finch Capital is an active producer of original research on the State of European Fintech and the Fintech sector post Covid-19. For more information visit Finch Capital.

A new finance system implementation project is a big project, but it can be a smooth one, with our hints and tips, gained from supporting hundreds of clients’ move on to AccountsIQ.

Our Customer Success and Accounting Software Implementation teams have a wealth of experience between them.  Many are trained bookkeepers and accountants and some staff previously worked client-side, using a wide variety of accounting software and our product, before joining AccountsIQ. They have first-hand experience of the challenges of new finance system implementation.

Typical questions customers ask when considering a new finance system implementation

1. Is a parallel run of two systems necessary?
2. When is the best time to move finance system?
3. How do I ensure engagement within the finance team and wider business?
4. What preparation should I do before moving finance system?
5. We’ve got multiple software we use in finance, should we change everything at once?
6. Should we change our finance processes to suit the new finance system?
7. Do you have an example implementation route map?

We cover these questions in the Webinar below including:

• Planning for Success
• Common Pitfalls to Avoid
• Tips for a Successful Finance System Implementation
• Structuring your Chart of Accounts and Reporting
• Timing
• Client Engagement
• Project Phasing
• Rethinking your Processes
• Implementation Route Map
• Customer Case Studies

Get in touch if we can help you with your new finance system implementation

If you are yet to decide whether to move finance software, read our tops tips to consider before changing accounting systems.

The coronavirus pandemic has presented some unique challenges for finance managers to deal with. When the organisation’s survival is at stake, effective finance systems come into their own. The right tools can make a big difference in how finance directors and their teams respond to these challenging times.

If outdated accounting software has put pressure on your finance team and reduced their ability to react to the unexpected challenges of COVID-19, then now is the time to invest in digital finance transformation. Here are three main elements to look out for when upgrading your finance function:

Cloud accounting is key for digital finance transformation

Working in the cloud provides a greater overview of your finance function, keeping you connected with your data and improving collaboration. On-premise solutions can take up a huge amount of time and effort, so it’s important to move to the cloud as early as you can to make processes more efficient, save money and your staff precious time.

Tindle Newspaper group is a prime example highlighting the importance of moving to a cloud solution. The AccountsIQ platform was implemented and operational prior to COVID-19 lockdown in the UK, meaning that the system could facilitate remote-working and the business could continue to operate.

We were lucky to have completed our move to AccountsIQ before COVID-19 and it has meant we can continue operating with minimal disruption. With AccountsIQ, our controls are better, the information is far richer, the system is more robust and reporting is timely. It gives us better information on which to make decisions.” Alastair Manson, Group Finance Director, Tindle.

Read the Tindle case study.

Automate processes for true digital finance transformation

Focusing on automation in areas of your finance function like reporting, consolidation, expense management and accounts reconciliation helps to create efficiencies within the business. These automated processes are key to improving productivity, saving company resources and allow staff to spend more time on value-add tasks like using information for growth strategies and initiatives.

Merchant banking business Salamanca Group enjoy the benefits of automated processes around purchase order approval as well as automated consolidation and reporting thanks to AccountsIQ.

AccountsIQ’s main success for us has been the efficiency it has brought to the business. The product is a good fit for our pretty complex accounting requirements and AccountsIQ gives us real value for money. We are looking forward to finding even more ways to use the system to improve the way in which we work.” Lee Camp, Group Finance Director, Salamanca Group.

Read the Salamanca Group case study.

Irish real estate company Hibernia REIT relies on AccountsIQ’s Cloud accounting platform for simplifying complex consolidation procedures; integrating information from Hibernia’s property management system Landmark; and providing insightful management reports using dashboards.

AccountsIQ saves us a day a week in processing time in data entry from other business systems, bank reconciliation, and automated invoice processing. This allows us to spend more time on the more “value-add” aspects of the Finance function, analysing and presenting information on which the senior management team can make more informed decisions.” Financial Controller Nick Treanor

Read the Hibernia REIT case study.

Scalability is key for digital finance transformation

The ideal accounting system is flexible enough to change with your needs and grow with your business. It’s increasingly important to invest in accounting software that will support your business now and well into the future. When thinking about the future, you need to consider new business opportunities, potential additional locations or sites, as well as new integration possibilities and new reports. If you’re planning to expand overseas, you’ll need accounting software that can operate in multiple jurisdictions and handle multi-currency transactions. And if you want to add numerous subsidiaries, your accounting software will need to handle consolidation with ease.

AccountsIQ has a very flexible GL at its core, and a full range of modules, meaning you can future-proof your business knowing that there’s a wide range of functionality you can add on whenever you need it. StitcherAds, a Facebook and Instagram marketing partner, found AccountsIQ to be the ideal long-term solution for their ambitious growth plans.

StitcherAds has ambitious growth plans and we need to be able to slot in new entities easily. I compared three systems and AccountsIQ proved the best solution to meet our needs now and in the future.” Fiona McKenna, Interim CFO, StitcherAds.

Read the StitcherAds case study.

Now, more than ever, more efficient ways of working are key. The impact of COVID-19 will continue to be felt for months to come, so it’s important to rethink processes and invest in finance digital transformation to enable your business to respond to challenges in the best way possible.

Learn more

To help digitally transform your finance function, take a look at AccountsIQ. With powerful reporting, consolidation and easy integration accounting features, AccountsIQ’s award-winning financial management software will help make your business more efficient.

Book a 1:1 demo or get a quote or see an online demo in one of our webinars.

Managing multiple currencies can be trickier than you think. AccountsIQ simplifies multi-currency accounting with powerful features that can handle even the most complex situations.

Multi currency accounting in an increasingly complicated FX world

With AccountsIQ, you choose your company’s base currency, then all of your supplier and customer accounts can be set up in any global currency. You can then settle those accounts receivable or accounts payable invoices against any of your global currency bank accounts that are registered in AccountsIQ. Even if you’re a Sterling company, with a Euro customer, settling a value in U.S. Dollars, our multi currency accounting software has automated, time-saving features that can handle it.

Accurate multi currency reporting and consolidation

AccountsIQ includes powerful reporting routines that accurately reflect the impact of multi-currency trading and selling. Our built-in, month-end report revaluates your working capital in foreign currency and reports back on your realised and unrealised gains. AccountsIQ also handles multi currency consolidation with ease. P&L accounts are correctly translated using average period rates and Balance Sheet accounts at period end rates.

Automated foreign currency accounting

AccountsIQ integrates with TransferMate Global Payments to streamline FX payments. Benefit from preferential exchange rates and lower fees plus huge time savings for your finance team. You can manage multi-currency payments in a single batch; AccountsIQ processes and updates the payments using the actual the FX settlement rate automatically via the API.

Manage intercompany transactions with minimal FX risk

If you are a business with multiple entities in different base currencies, AccountsIQ can help you manage intercompany transactions by ensuring accurate reporting at the group level. Powerful tools enable revaluation of foreign currencies without the risk of a misbalance at the end of the month. You can also use the automated FX settlement for intercompany transactions.

Our customers like these functions:

• Manage customer and supplier accounts in multiple currencies.
• Automated month-end, multi-currency reporting that revaluates your working capital and reports on your realised and unrealised gains in FX.
• Integration with TransferMate to provide up-to-date spot rates in real time.
• Manage multi-currency financial consolidation, using an average rate for your P&L and a month-end rate for your balance sheet.

Learn More

Find out more about using accounting software in multiple locations by reading our CEO’s blog about overcoming international accounting challenges. Learn more about AccountsIQ multi currency cloud-based accounting software. Get your free trial and demo.

If you’re planning an accounting software upgrade, it’s important to make the best choice for your company. Discover and choose the right cloud accounting software for your needs.

What features do the best cloud accounting software have, and what are the benefits?

In the old days, your accounting software would be installed on a computer in your office — and that’s where it would stay. You’d have to log in to that machine to use it and install updates regularly. If you couldn’t make it to the office, you’d be unable to access your accounts. These days, the best accounting software is located in the cloud, on a remote server. You can log in and access it wherever you are, and it’s updated automatically.

5 top cloud accounting software

AccountsIQ

Our cloud accounting software has been designed with growth, scalability, and efficiency in mind. We excel in providing your business with all of the accounting features that you will need as your organisation grows. These include budgeting, auditing, cash flow forecasting, group consolidation and more.

Suitable for: Mid-market, enterprise, and multi-entity organisations

Sage 50

Suitable for small and some medium businesses with lots of opportunities for customisation, including integration with desktop software, creating a hybrid hard drive and cloud-based solution.

Suitable for: Single entity organisations

Xero

Xero allows you to efficiently import data, manage fixed assets and track your sales and purchase transactions. It has made improvements to many aspects of its service, though it still has limits around reporting, and expense tracking functions.

Suitable for: Freelancers and Start-ups

Quickbooks

This software is usable, flexible and effective, and this is reflected in its more costly price tag. It provides great customisable report functions, but its auto-categorization can lack accuracy.

Suitable for: Freelancers and Start-ups

Sage 200

Like Sage 50, this software allows for integration with desktop systems, including Microsoft Office. However, it is very difficult to set up and can be challenging to use.

Suitable for: Organisations only requiring hybrid accounting environments

Key features for the best cloud accounting software

If you want to know what to look for when shopping for cloud accounting software, or how to tell whether your current system is up to scratch, take a glance at this checklist. If your software can do everything on this list, you’re probably getting a good deal. If it’s not checking the boxes, you might want to look elsewhere.

Use it on the move

When your accounting software is in the cloud, you can log in from any device, wherever you are, as long as you have an internet connection. It’s great for working from home or the office.

Stay secure 

With cloud accounting, you don’t need to worry about protecting or updating your software – it’s all done for you, so you can get on with what’s important.

Get real-time data

A cloud-based system is always live, so no matter when you log in, you’ll always get access to the latest financial figures. If you’ve integrated it with your CRM, booking system or banking app, they’ll all link together for up-to-the-minute real-time reports.

Collaborate and integrate

In the cloud, it’s easy to connect with others. Multiple colleagues can all log into your accounting system and see live updates and you can approve invoices, POs and expenses via our mobile app whilst travelling too. You can integrate your accounting software with other cloud-based systems, like your banking software or CRM to create even more efficiencies.

Save money

Subscribing to a software-as-a-service (SaaS) solution rather than buying your own package works out cheaper in the long run, and IT hosting and support is all included in the package.

Performance, features and functionality to look for

What makes a good cloud accounting solution? Here are some of the key things to look out for, when you’re considering suppliers.

Features and Functionality

Can it consolidate accounts from multiple entities and in different currencies, without the need for fiddly workarounds? Will you need to design your working processes around the software, or will it work for you? Will it save you time and effort?

Scalability

Is your chosen accounting software flexible enough to grow with your requirements, where it is easy to add additional entities and extra modules as and when you need them? Can it integrate with other best-of-breed cloud apps to give you the efficiencies your business needs? This is really important if you plan to grow your company in the next 5 years.

Easy to implement

How quick is it to get going? Will you get full support during implementation?

Affordability

Is it good value for money? Will your accounting system save you time and money by automating routine tasks? Will you benefit from free customer support?

Award-winning cloud accounting software from AccountsIQ

Named Mid-Market and Enterprise Accounting Software of the Year twice in the last 3 years, AccountsIQ is the best cloud accounting software for growing businesses. The voting for the Accounting Excellence Awards is done by actual users of the product, and the win reflects the satisfaction of our client base with an accounting product that’s designed for their needs.

AccountsIQ’s award-winning accounting software simplifies how finance functions capture, process and report the results of multiple location businesses.

Built for the cloud, AccountsIQ is ideal for dynamic businesses that are growing locally or internationally, via subsidiaries, acquisition or through a franchising model, while allowing easy central control and consolidated reporting of results. The unique consolidation engine, along with its ability to integrate with other applications, makes it easy to scale.

Features that put AccountsIQ above their competitors

Multi-entity accounting

You can easily manage your multi-company accounting and handle full group consolidation for Groups and Entities with reports generated in one click.

Superior financial reporting capability

A suite of 250 reports and dashboards with editable parameters and extended department analysis (up to 6 dimensions e.g. dept, sector, project etc) that gives you the exact insight you need across your business. And graphic visualisations provide an instant snapshot of real-time figures.

Advanced functionality

A powerful, flexible 3-level General Ledger, feature-rich Journal Manager, Accounts Receivable and Accounts Payable and additional modules such as workflow approval, an expense and workflow approval mobile app, and an integrated fixed asset register.

Superior user experience and interface

AccountsIQ is simple to use with customisable tools, a transaction browser for drill-down to transaction level, and full user profiling and audit trail.

Affordable software

Our software is a good fit for a range of growing companies, of different sizes and sectors. AccountsIQ's cloud accounting systems can benefit businesses of all sizes and can radically impact the way your business works.

Read more about the key features of AccountsIQ’s cloud-based accounting software and contact us to request a demo.

Multi entity groups and conglomerates have complex multi-entity accounting needs. Often operating across different continents and trading in different currencies they need accounting systems that can handle consolidation, fluctuating exchange rates and other complex tasks with ease.

What are multi-entity organisations?

A multi-entity organisation (sometimes called a group company) is a collection of separate corporations that operate as one single economic entity. They usually consist of a parent company and subsidiary companies, sometimes on multiple levels (groups within groups). Because multi-entity organisations operate as one body, they must produce consolidated group accounts, while also keeping track of individual subsidiaries’ financial performance.

Accounting challenges and complexities

Multi entity accounting involves a wealth of data gathered from many different sources. Bringing all of this together (consolidating accounts) can be a difficult job, especially if your accounting software is not set up for this purpose. Challenges include:

• Different General Ledger coding systems set up in different subsidiaries
• Working in multiple currencies, with a fluctuating exchange rate. This can lead to errors and inconsistencies if different exchange rates are used
• Handling inter-company sales within the group
• Complex ownership arrangements, in groups where ownership of a subsidiary is less than 100%
• The complexity of viewing and tracking financial performance across multiple entities

Because of these multi-entity accounting challenges, creating monthly consolidated accounts can be a time-consuming process, and important financial data across the group may not be instantly available. This may impact on the strategic decisions that conglomerate leaders must make based on the information they have.

Accounting software solutions for multi-entity organisations

Accounting software designed for group companies must address these challenges and complexities, providing automated solutions tailored to the needs of multi entity organisations.

I don’t know of any other system that can do consolidation the way AccountsIQ can. It takes a lot of complexity out of everything and that saves us a lot of time. It used to take two weeks to do our accounts; with AccountsIQ and other improvements, we now get our accounts out in five working days,” Wayne Copeland, Head of Finance, AES International. Read AES Case Study.

Getech Case Study: Multi-Entity Accounting

Getech is a global geoscience and consultancy group operating in the UK and the USA.

The problem: For the growing company, consolidation was a time-consuming and complicated process, which involved importing data from four different software packages.

The solution: By moving to AccountsIQ, the group has streamlined its consolidation process, which now saves a full week of work every month. The system allows the company to create real-time reports at any time, as well as handling multiple currencies with ease.

Fevore Group Case Study: Multi-Entity Accounting

Fevore Group is an independent group of diverse companies.

The problem: The group was consolidating its accounts manually using Excel spreadsheets – a process that was not only time-consuming, but error-prone.

The solution: AccountsIQ accounting software enabled Fevore Group to automate their consolidation process, saving a significant amount of time and bringing confidence in the accuracy of the reporting. The new accounting system also allows for performance benchmarking across each individual subsidiary business.

Streamline your group accounts with AccountsIQ

For multi-entity organisations, AccountsIQ can save time, improve efficiency and offer detailed financial analytics: get an overview of group performance or drill down for information on individual subsidiaries. Monthly currency revaluations make trading and accounting in multiple currencies simple.

For more information, book a demo to see how AccountsIQ could benefit your multi-entity business.

AccountsIQ has added new VAT functionality to comply with Making Tax Digital. The new functionality allows AccountsIQ users to submit consolidated group VAT returns.

Changing accounting systems is a big project, so before you commit, you need to make sure it’s a success by asking the right questions.

These 7 considerations are a great place to start…

1.   Cost savings and ROI

Cost is a vital consideration when switching accounting software. You need to be sure that your new system will provide a good return on investment and that it will be better value for money than your current system.

• Are all costs set out transparently? Hidden costs can include additional hardware and disaster recovery, support services and upgrades. Ensure that you have all the information you need to understand the absolute monthly cost so that you can compare like for like with other providers.
• Will you only pay for what you need? Some providers may charge for functionality that isn’t relevant to your requirements. Additional modules may be available at an extra cost.
• What will the return on your investment be? Can it be verbalised as a solid benefit for your business? For example, a member of staff saves 10 hours per week that can now be spent on valuable strategic work.

2.   Scalability

The ideal accounting system is flexible enough to change with your needs and grow with your business.

It would be a great shame (and waste of effort) to select a solution that you then outgrow, only to find that your chosen system is limited in terms of capacity or that you have to migrate or upgrade to a higher/later version.

When thinking about the future, you need to consider new business opportunities, possible additional sites or locations as well as new reports and new integrations with other systems that you don’t currently use.

If you’re changing accounting systems, consider the scalability of your proposed new software first.

• How long is the system going to last you? Consider your business plans for the next few years. Are you likely to experience high growth that will affect your accounting software needs?
• Choose a scalable system that can add functionality as you go.

3.   Functionality, usability and technical fit

For your new accounting software to be a success, it has to meet the needs of your users. It’s important to review your own business processes so that you have a good understanding of your requirements.

• Is it easy to use? When the software is user-friendly, it’s easier and quicker to adapt to, with minimal resistance.
• Is it cloud-based? This is the future; changing accounting software is the ideal time to migrate to the cloud if you haven’t already. Read our Moving to Cloud Accounting guide for more info.
• Does it have the functionality you require to solve the specific pain points of your organisation? (Have a list defined of absolute, must-have functionality and nice-to-have, non-essential features).

4.   Integration

Accounting software integration is increasingly important in today’s accounting systems. When your finance systems all work together, you can plug into any system and get things done more efficiently.

• Does it have an open API? This is important so that developers can easily connect systems with open and programmable connectors to other systems – making the exchange of data between systems more reliable.
• Can you potentially use your accounting system to plug into the banking system, CRM and EPOS if required?

5.   Timing

When changing accounting systems, choose your timing wisely to minimise disruption to your business. Here are some considerations:

• In less busy periods, staff will have more time to invest in a new project.
• Plan the changeover well in advance: larger organisations should aim for a 6 month run-up process to allow enough time for the procurement process. Smaller organisations could be up and running in a matter of weeks.

Is changing accounting software mid-year complicated?

Changing your accounting software mid-year can bring complications. The main issue being that you’ll be left with some months' information being logged into one software and the remaining months in another.

Whilst this can be challenging, it’s not impossible and shouldn’t stop you considering changing softwares halfway through the year. There will be the added responsibility of adding both of the accounting reports together at the end of the year as well as ensuring there’s no overlaps or inconsistencies in your data.

It’s also recommended to manually reproduce existing data into the new software, especially if you’re only a few months into the year. This means you’ll be able to keep all information securely in one accounting system.

 6.   Reliability and security

Accounting systems need to be reliable and security is key. You need to be able to trust that your data is safe, and understand what would happen if the system went down.

• What is the disaster recovery capability of the new accounting software?
• Is system security tested regularly?
• Does the software have strong user access control?
• Do data backups happen regularly offsite and are business continuity plans tested regularly?

7.   Services and support

It’s no good having a fantastic software if you’re not supported during your accounting system implementation and beyond. Therefore, during your selection process:

• Ensure that you will have a dedicated implementation manager.
• Check the provider’s support services (speak to existing clients of potential providers).
• Ensure that you will have access to a dedicated Account Manager going forward.
• Make sure there are SLA’s in place and are contractual.

What challenges can occur when changing your accounting system?

Like most significant financial decisions, changing your accounting system doesn’t always run smoothly. There are a few common issues that can arise during the implementation of a new software to be aware of.

• Unprepared opening balances
• Inaccurate data transferal
• Missing software features
• Difficulty using the system.

Accountancy as a profession has always been subject to change, from the invention of book-keeping to the introduction of calculators and computers. In the past decade, however, the rate of change has accelerated, with a proliferation of new technologies having a significant impact on the sector. Competing in this modern, technology-driven climate, accountants and accountancy firms must adapt to survive.

Accounting challenges faced by accountancy practices

Accountancy practices supporting medium-to-large sized businesses face a number of challenges. In addition to a technological revolution, political, legal and economic influences are all creating hurdles that accountancy practices will need to overcome.

Adopting new technology

The onward march of technology is inevitable, and for today’s accountancy practices, sophisticated cloud-based software is required in order to meet the demands of clients. Many accounting firms will face the practical challenge of choosing and implementing new software. They will need to have one eye on the future in order to select the accounting system that will serve them best, and plan carefully in order to project manage the changeover to a new system.

Finding new talent

With an ageing population of senior finance professionals fast approaching retirement, accountancy practices urgently need to recruit new talent in order to avoid a skills shortage. They may need to offer more attractive packages to promising new recruits, and provide on-the-job training to help younger employees to develop their skills.

BREXIT

There is currently a huge amount of uncertainty surrounding the tax and other financial implications post-Brexit, and firms can expect the impact on their clients to have a knock-on effect on their own businesses. While some effects of Brexit may be negative, accountancy practices may also see a surge in demand for financial forecasting services and other expert advice.

Problems faced by accountants

Day-to-day accounting challenges look very different from even ten or twenty years ago. New technologies have raised client expectations, and with the changing technological and financial landscape, accountants must keep up with new developments in order to compete.

Automation

With accounting software becoming increasingly sophisticated, there are a growing number of accountancy tasks that can now be done automatically with cloud accounting software, without the need for input from a human being. To avoid becoming redundant, accountants now need to adapt their role, marketing themselves as expert advisors rather than simply doing the books and producing reports.

Data security

With the rise of cloud-based accounting, life will be easier in many ways. It’s vital, however, for accountants to realise their responsibility for keeping financial data secure in the cloud. They will need to reassure clients that their accounts are protected behind a firewall, backed up regularly and that their software is up-to-date with the latest security patches.

Staying up-to-date

We’ve seen that the world of accounting technology is changing. There’s no reason to suspect that this will stop, so accountants cannot afford to rest on their laurels. They must ensure that their skills are kept up-to-date, so that they are equipped to deal with the latest challenges, such as digital tax and VAT returns.

If you’re implementing new accounting software for your company, a bright new future awaits. Cloud-based accounting systems have so many business advantages that you’re bound to reap the benefits when upgrading – as long as you and your staff all understand what the new software can do.

Education is a fundamental part of any software changeover; here we’ll explain why moving to the cloud requires a comprehensive programme of education and staff training.

Get the best out of your software

Today’s technology is so powerful that we don’t always use it to its full potential. Software vendors often observe the 80/20 rule: commonly, 80% of clients will only make use of 20% of their system’s capabilities. That’s a lot of processing power that’s going to waste. There’s no point in going through the effort and disruption of a software changeover if employees revert to habit and continue to use the complex workarounds that they were used to with the old system – so training is vital if you’re going to get the best out of your upgrade.

AccountsIQ not only provide a revolutionary cloud-based accounting system, but also the training, implementation and customer support to go with it.

Adapting to change

In general, people don’t take kindly to change. The longer we’ve been accustomed to our own way of doing things – even if it’s slow, frustrating and inefficient – the more resistant we are to anything that disrupts us from our comfort zone.

So, the importance of education during the changeover can’t be overstated; people need insight into the personal advantages and benefits that a change in their role or habits will bring.

Tips on education and training

Staff education is an ongoing process that can begin as soon as you decide to upgrade your system. Accounting software training is a more hands-on activity that involves learning how to carry out specific tasks.

Here are some tips on educating your employees about moving to the cloud:

• Get them involved: ask for feedback on how their roles are carried out and what changes they’d like to see.
• Offer a demo: get your software provider to let staff ‘play’ with a dummy version of the new system before its implementation, to see for themselves what it will be like.
• Keep talking: by getting enough people engaged, you’re more likely to convince your staff of the merits of the change.

Everyone in the company needs to understand the importance of training and make time for it in their schedules. Software changeovers involve significant changes in everyone’s working day, and employees need to feel confident and happy with the adjustments to their role.

• Remember the 80/20 rule? Don’t be one of those clients: by providing full and comprehensive training sessions from the start, you’ll ensure that your company is using the system to its full potential.
• Split your staff into different types of user: they’ll have different training needs depending on how they use your software.
• Use a variety of different training methods to meet employee needs. These could include everything from group and one-to-one training sessions to online learning resources such as videos and documentation.
• Following staff training, a ‘hand holding’ period allows you to work closely with the software providers to ensure that you are getting everything you need from the system.
• A responsive customer support system will help you with ongoing queries as you continue to use the system.

If you’re needing advice on accounting system changeover, contact one of our experts for more information on 0203 598 7350 or to get an overview of the sophisticated functionality within AccountsIQ, Request a Demo.

If you’ve ever heard the term “API” mentioned, you might have dismissed it as something for the IT department to worry about. But did you know that APIs are relevant to accounting, too?

We’re here to show you why APIs in accounting matter, and how an open API could help you to build your business and work more efficiently.

What does API stand for?

API stands for Application Programming Interface. It’s a piece of jargon that may sound techy and complicated, but all it really describes is a way for one computer system to talk to another. The word ‘application’ refers to the software involved whilst the interface defines how the two applications communicate. An example of API would be having a map appear on your website from Google Maps or recent tweets embedded from Twitter — API allows different systems to work together. 

What does API mean?

Put simply, an API is a set of instructions that allows developers to integrate apps with each other so that they can work together.

Some platforms offer ‘open APIs’, giving away their development code to anyone who wants to use it. For example, Facebook is a platform that makes its API open to developers. The developers are then able to use the right code to build apps for use on that platform. If you’ve ever played Scrabulous or other games available on Facebook, then you’ve benefited from an API. That’s a trivial example, but APIs have a far wider scope than gaming and social media, with the potential to simplify and streamline your working life.

Integration with development partners

At AccountsIQ, our open API makes integration easy with other apps that your business might use on a day-to-day basis. This means that your software can work efficiently for you, reducing your workload and making your to-do list more efficient across the different areas of your business.

We have a range of development partners whose software works with ours, including Salesforce, BrightPay Payroll and Autoentry. Integrated accounting software makes it really simple to automate many functions, by accessing accounting information straight from your sales data, for example. This is all done thanks to our open API integration platform, which makes it easy for any third-party application to link with us.

APIs in the world of finance and banking

Open APIs are a big topic in banking and accountancy at the moment. Following the introduction of PSD2 in April 2018, a new process known as Open Banking allows intermediaries to process payments directly instead of going through the banks. How is this done? By accessing customer banking details themselves, using a secure open API that allows different computer systems to work together.

This represents a significant change for the way transactions are processed, and could be a big opportunity for growth and development in many businesses.

APIs in the age of cloud accounting

If you’re an accountant, IT may not be a key part of your skillset. But in the age of cloud accounting, it pays to understand what information technology can do for you, and the business benefits it can bring. If there’s one message to take away from this, it’s that your choice of software isn’t always just an IT matter – it’s often a critical strategic decision that will have an impact on future of your business.

Success in business isn’t usually down to luck. Instead, it requires good strategic decisions, informed by a detailed understanding of your own business performance and the wider market. Evaluating business performance doesn’t need to be a complicated process, but it should be regular: these 6 steps cover all the bases.

1.   Review your business activity: have you done what you wanted to do?

Your business goals should keep you focused. Set targets for your business to achieve, then conduct a regular business performance review to ensure that you’re where you want to be.

Areas to focus on include:

• Sales: have you performed as expected?
• Innovation: are new ideas developing on target?
• People: have employees and teams achieved their individual targets? Are you retaining staff or is staff turnover too high?

2.   Efficiency: could your profit margin be improved?

The efficiency of your business operations is about the best use of resources: how are you doing what you do, and are you incurring wasteful costs? After all, the key to healthy profits is to reduce your outgoings as well as increasing your income.

• Operational costs: could these be reduced? Look at your utility bills, rent, staffing costs and other expenses.
• Time: are you wasting too much staff time on inefficient processes? For example, could you streamline your finance function so that time can be better spent on more profitable activities?
• Do your product prices or hourly rates bring in enough income? Do you need to put your prices up? Are loss leaders paying their way?
• Finance: are your sources of funding secure? Can you think of other ways to bring in money?

3.   Look at the competition: can you take ideas from them?

Business performance doesn’t just depend on what you do within the company. Competing businesses could seriously affect your bottom line. It’s vital to keep a regular eye on other businesses in your field.

• How much do they pay their staff? Could you lose your best talent to a competing firm?
• What’s their pricing like?
• What is their target market?
• Are they offering anything that you don’t? And should you be doing it, too?

4.   Keep an eye on wider trends: do you need to adapt?

We’ve seen that your business doesn’t exist in a bubble. As well as your competitors, the wider world needs to be considered when evaluating business performance. That could include the local and international economy, the market you’re part of, and technological progress.

• Have prices gone up or down? The cost of raw materials could dramatically affect the profit you make on your products.
• The exchange rate: is it affecting your profits? Could you source materials from elsewhere?
• What’s the next big thing in your field? Are you keeping up with new developments, or are customers likely to look elsewhere for what they need?

5. Review customer satisfaction: are people loyal to your business?

Customer satisfaction is an important measure of success, the happier customers are, the more likely they are to return to your products or services. Listening to feedback is also a great way to improve on your current offering, taking these learnings and actioning them. But how do you measure customer satisfaction? Here are some easy ways:

• Create a survey and share it with email subscribersMonitor customer reviews and look for any recurring themes - what do they like? What’s missing from your offering? What are their pain points?
• Explore customer retention rates. How many are returning customers? Do customers shop elsewhere, and if so, where?

6. Conduct performance reviews: are your employees happy?

Employees are the backbone of a company and so their happiness and productivity are a core measurement of overall business performance. An effective way to measure employee satisfaction is with performance reviews which provide insight into what employees are doing well, what they need support with and what motivates them. Here are some key questions to ask during performance reviews:

• What recent accomplishments at work are you most proud of?
• What goals have you met and which have you been unable to meet?
• What motivates you at work?
• What can I do to make your job more enjoyable?
• What are you enjoying most in your role?
• What are your most important goals for the business?

What are the benefits of evaluating business performance?

Evaluating business performance allows you to make informed decisions and plan ahead, knowing which areas require extra attention. Assessing performance enables goals to be set and improves overall efficiency, let’s take a look at some of the main benefits:

• Improves communication — evaluating business performance opens up a conversation between management and employees. This honest discussion promotes the sharing of ideas and feedback — key to the success of a business.
• Solves existing problems — taking an in-depth look at business performance will quickly identify problems, giving you the opportunity to resolve them.
• Evolves new strategies — business performance evaluations also shine a light on what’s working. This insight helps develop new strategies, especially when researching competitors and customer satisfaction.
• Fuels growth — measuring success is critical to the growth of your business. Regularly evaluating performance allows you to weed out any issues and double down on effective strategies. Constantly seeking improvement will only help the business grow further.

How the right accounting software is vital for evaluating business performance

A proper evaluation of your business can only take place if you have the means to access all the facts and figures with the tools to analyse them. With cloud accounting software from AccountsIQ you can access instant, customised reports on all areas of business performance.

Is your company still using an outdated, troublesome accounting system? Perhaps budgets have dictated you stick with legacy software; or perhaps you simply haven’t been convinced by a move to the cloud.  Let’s take a look at the main benefits of cloud-based accounting software, and the difference it could make to your business.

What Is Cloud Accounting?

Cloud accounting means using cloud-based software to access your business’s financial records, including data on income, expenses, assets and liabilities. The data is stored remotely in the cloud, rather than on the hard drive of your device. This means that people with a valid log-in can access your business’s books and use functions such as invoicing, quoting and managing bills from any device with an internet connection. 

What is Cloud-based accounting software?

Accounting software is a type of programme that carries out several accounting and bookkeeping tasks including recording day-to-day transactions, storing data and filing invoices. Cloud-based accounting software carries out these tasks but doesn’t have to be installed on one or more computers. Instead, it’s accessed via the internet, with all data stored on the cloud. This is much more secure and accessible than regular accounting software. Cloud-based accounting also allows for more customisation of financial reports, making it popular amongst accountants.

How Does Cloud Accounting Software Work?

Most cloud accounting software platforms offer a subscription-based service, where clients pay monthly for access to the system. It’s normally possible to connect your software to your bank account so you get automatically updated information about your finances. Cloud-based accounting has rapidly become a hugely popular game changer for businesses, allowing them to streamline their internal processes, save time and access their books remotely.

Why Do Companies Use Cloud Accounting Software?

Many companies enjoy using cloud accounting software thanks to its scalability, ease of use and automation. Businesses can benefit from instant financial breakdowns, reduced workloads, ease of paying taxes, accessibility for remote teams and Making Tax Digital (MTD) compliance. 

However, the main reason businesses choose cloud accounting software is to ensure sound financial practices. This includes compliance, accuracy and the chance to gauge financial health at a click of a button. 

What Are The Benefits of Cloud Accounting?

Automation Saves Time

Think of all the predictable, repetitive tasks that are carried out every month by your finance function. Producing reports, generating invoices and converting currencies can all be time-consuming, manual tasks that create challenges for your staff by keeping them bogged down in mundane but essential processes. Because we all make mistakes from time to time, they are also vulnerable to human error.

One of the most immediately noticeable benefits of cloud accounting software is that it can automate these tasks, so your reports are produced effortlessly each month, and your staff can spend their time on more valuable, strategic tasks that bring extra benefits to your business.

Cloud Accounting Saves Money

Cloud accounting software doesn’t require the same physical presence as a desktop-based system. You won’t require in-house IT support; with AccountsIQ, this will all be available at the end of a phone, saving on staffing costs and floor space. Servers and licences will be a thing of the past and your system will be upgraded automatically, so you won’t have to shell out on new software every time there’s an update. What’s more, it’s possible to access a cloud accounting system from any computer; so if it suits your business, staff can work from home or on the move.

Stay up-to-date and secure

Security is a big concern for every company, and finances are especially sensitive. The benefits of cloud accounting software include specialist security protection, firewalls and encrypted data transmission as standard. Software updates are carried out periodically without you having to do (or pay for) anything extra.

Collaboration With Colleagues

Cloud-based software allows colleagues from across your organisation to work together, wherever they may be. Different permissions can be set for different types of access, so one member of staff can enter data for the accounting department to process, without gaining access to restricted information. Cloud-enabled collaboration will enable you to streamline processes like expense management, speeding up essential tasks for everyone.

Better Business Insights

Many of the benefits of cloud accounting software involve doing away with old and inefficient ways of working. But cloud accounting also offers untapped possibilities to help you move forward and develop new business intelligence. Cloud software is inherently flexible and is designed to integrate with other cloud-based systems, streamlining your workload company-wide and providing you with instant, up-to-date reports on every aspect of your business. Equipped with the unprecedented knowledge provided by integrating your accounting system with your CRM, for example, you’ll gain new insights into your business that will help you to move into the future.

What Are The Disadvantages of Using Cloud Storage?

In summary, there aren’t many disadvantages to adopting cloud accounting software. However, there are certainly aspects that you have to be aware of:

• Data security is always a key consideration and concern when using cloud-based solutions. While it doesn’t have to be a disadvantage, ensuring that your financial information is fully secure does require significant effort, and shopping around to find the safest provider.
• Naturally, using a cloud accounting system means you are dependent on having a good reliable internet connection. Having access to your accounts from anywhere at any time sounds great, but of course if your WiFi is on the fritz, you may find yourself stuck.

Move to the cloud with AccountsIQ

If you are looking to introduce the best Cloud accounting software into your organisation, find out why AccountsIQ could be the best choice for you.

AccountsIQ is a web-based accounting and business solution that has been designed specifically for multi-entity accounting. It is ideally suited for geographically dispersed entities, enabling them to carry out their accounting and business processes via a standard Internet connection. This eliminates the need for expensive IT infrastructure or duplication of effort in re-keying and posting summary information into a common central system.

Overview of AccountsIQ Multiple Location Accounting Software

Some large enterprises are made up of individual subsidiaries, branches or depots that in themselves are small businesses. In many cases, accounting systems targeted at large-scale enterprises are simply overkill for these individual entities. Such systems can involve significant upfront investment and implementation effort, imposing processes that are ill-suited to smaller operations. AccountsIQ provides a full suite of accounting and commercial functionality to suit most small and medium-sized businesses. It has been specifically designed to handle multi-location and multi-entity businesses co-existing on a common -platform, with the ability to control access based on user roles, providing management with anytime-anywhere access to the latest accounting records and documents, facilitating the monitoring of individual entities performance, as well as the overall consolidated position of the group.

Whilst separate databases are maintained for each entity, AccountsIQ has the ability to consolidate all entity information to review group activity and results, allowing benchmarking across the group and the production of extensive consolidated accounts and views. Powerful reporting and business intelligence capabilities enable both financial and non-financial. Key Performance Indicators (KPIs) and graphs to be produced, as well as normal accounting reports at entity level and group level. These are provided through financial management dashboards tailored to the specific reporting requirements of the group and its entities.

Multi-Location Accounting Software Features

• Full multi-currency accounting and multi-jurisdiction sales tax reporting.
• Consolidated group accounts including inter-company accounts and automation of inter-company transactions.
• Consolidated views of group activity and indebtedness with customers and suppliers.
• Dynamic multi-location stock control and movement between locations with central management of product files and pricing, including intra-group transfer pricing.
• Fulfilment of orders from any location, regardless of where originated. Automatic creation of inter-entity orders eliminating duplication or rekeying.
• Access controlled from head office to all entities based on defined user roles, including tracking of access to each entity for shared services monitoring and recharging.
• Powerful Business Intelligence capability to monitor group performance via management dashboards. Allows benchmarking of activity and results across the group.

Benefits of Multi-Location Accounting Software

• Integrated Document Management allows business documents such as invoices, orders, contracts etc to be attached to entity accounts, products, transactions or defined folders.
• Open architecture allows easy integration via Web Services with other group front office or operational applications, either online or on-premise.
• Ability for smaller subsidiaries of a large group to implement a simpler more cost effective system, which integrates into a group system for consolidated group reporting.
• Fully managed SAS 70 Type II compliant hosted platform provides simultaneous availability via the Internet for any entity or group user with easy roll out to new entities.
• Extensive user-definable analysis codes with up to 6 distinct analysis groups to track results by location, business line, project, job, manager, cost centre etc.
• User-defined non-financial statistics and KPIs enabling a holistic approach to management reporting and tracking of results across all aspects of the business.
• Automated overhead allocation based on non-financial statistics or measures.
• Intercompany noticeboard for instant communication, updates and sharing of relevant information, including attachments, at user, role, entity or group level.

Learn More

For multi-location companies, AccountsIQ multi entity cloud software can save time, improve efficiency and offer detailed financial analytics: get insights into group performance or KPIs on individual subsidiaries. Monthly currency revaluations make trading in multiple currencies simple.

AccountsIQ has added VAT functionality to comply with Making Tax Digital. This functionality allows AccountsIQ users to submit consolidated group VAT returns.

Discover how we help companies with their multi company accounting and the benefits of using AccountsIQ’s accounting software in your multi-location business. Get a free trial and demo.

In the absence of more modestly priced accounting software solutions (most are very expensive), the majority of monthly multi entity consolidation is still conducted using Excel spreadsheets, which is time consuming, can be highly error prone, and results inevitably in excessive delay. Many of these spreadsheet consolidation procedures merely ‘amalgamate’ accounts as opposed to conducting ‘true consolidation’  Using Excel also limits the ability to report and analyse the consolidated accounts in a consistent manner with little or no investigative or interrogative facilities, since the spreadsheet results are “external” to the original application.

If you have more than one entity, regardless of your company size, you are likely to need to report on and analyse consolidated accounts.

Key aspects to multi entity consolidation

Consolidation must take into account partial ownership, i.e. an ability to handle not just the minority holding, but also dates of purchase/sale or change of ownership.  In addition to minority interests, you may also have a subsidiary entity which is itself a Group Company with its own group of subsidiaries, some of whom, again may be partially owned. This calls for multi-tier consolidations.  To complicate matters further, you’ll often need to consolidate at a sub-level i.e. by division, branch, department within each entity and which you want to see these results consolidated up to the Group Company level.

You may also have multi-currency accounting, whereby any single entity may operate in numerous currencies and have multiple bank accounts in different currencies.  Some of these subsidiaries may have a base currency that differs from that of the holding company. This creates further complication in revaluing P&L accounts using ‘average period rates’ and Balance Sheet accounts using ‘period end rates’, and further ensuring every subsidiary is using common (centrally imposed) daily exchange rates throughout the period.

By now your spreadsheet is bursting at the seams and becoming an unmanageable nightmare – and even if you can manage the complexity, it’s now very likely that it will be highly error-prone, since the Excel formulae will have very little by way of checks and balances to ensure compliance back to all the original consolidation entities. Never mind the time consumed extracting the relevant information from the completed month end accounts and the consequent inefficiencies involved. If you have managed to complete the month/period end accounts (accurately) then all you need to do is close the month/period and produce the management reports.  But what about those last minute postings, adjustments and accruals?  All of which require yet another re-run.  And then there’s the inevitable structural changes to be made every few months because of the Group’s growth and expansion.

Multi entity consolidation for medium-sized enterprises

The good news is that a modestly priced solution which incorporates all of the aforementioned features does exist within a comprehensive suite of accountancy applications specifically designed for medium sized enterprises.  Using the AccountsIQ consolidation engine alongside its fully featured set of accounting applications ensures that the periodic consolidation process is simple, straightforward and accurate.

AccountsIQ also consolidates Budgets and Revised Budgets up to the Group level (and to any “Parent” Companies in a multi-tiered consolidation). Reports can be easily produced using budgets, revised budgets, actuals and variances rolled up from subsidiary level with drill-down capabilities.  There is also the ability to consolidate Sales and Purchasing data and report at group level, again with the ability to drill down to subsidiary level.  In addition, you can post inter-company transactions within the group, or adjustments at group level to eliminate inter-company profits. Make life easier for yourself and your finance team, and get the accounts accurate – your accounts are the life blood of your business.

AccountsIQ consolidation functionality

Consolidation of Multiple Subsidiaries (Incl. Sub Groups):

• • Engineered to manage the consolidation of a large number of subsidiaries’ datasets with ease. Also handles sub-groups where the consolidated entity itself becomes a subsidiary of a large group consolidation. Ideal for complex corporate structures.

Manage Complex Ownership Arrangements:

• • Consolidation automatically recognise Minority Interests liability if the ownership interest is greater than 50% but less than 100% and creates the relevant postings in the consolidation entity.

Handle Multi Currency Consolidation with ease:

• • Subsidiaries can operate in their own base currency and results are translated into the base currency of the consolidation entity, based on stored exchange rates for each reporting period. P&L accounts are correctly translated using average period rates and Balance Sheet accounts at period end rates.
  • Centrally Control Exchange Rates: No need to waste time maintaining average and period end exchange rates in multiple subsidiaries. Central Currency Management enables you to maintain rates in one central table.  The updates automatically propagate to all related subsidiaries using triangulation of the group stored rates.

Report on actuals vs Budgets by BI Analysis structure at Group Level:

• • Budgets, revised budgets, actuals and variances are rolled up from subsidiary companies making it easier to view overall performance and trends across the group at any time, including BI Analysis coding as well as GL Chart of Accounts enabling group level BI reporting.

Simplify the posting of Inter-company Charges:

• • Raise inter-company Sales Invoices that automatically create Purchase Invoices in the receiving company. Purchase invoices remain “unposted” until approved and coded in the receiving company. Ensures that inter-company accounts remain balanced for elimination at group level, even if balances are in different currencies.

Month End Currency Revaluations:

• • Provide your team with the tools to simplify the revaluation of foreign currency bank, debtor and creditor accounts at subsidiary level based on centrally maintained exchange rates. Unrealised gains (losses) are automatically posted and base currency value of assets and liabilities adjusted prior to consolidation, facilitating elimination of intercompany balances at group level.

Group Sales & Purchase Analysis:

• • Consolidated Sales & Purchase Analysis to allow group-wide reporting and benchmarking where common products/services involved.

Post Consolidation Adjustments: Make adjustments at group level to eliminate inter-company profits etc. at group level without affecting the subsidiary figures.

AccountsIQ customer, Apera Asset Management’s group consolidation was done in spreadsheets: data was exported from various systems and in different currencies, then brought together in Excel. Rob Shaw, CFO explains,

AccountsIQ’s consolidation software means there is no fiddling around in spreadsheets trying to get things to tie.  Working in Excel was not sustainable; before AccountsIQ, we had instances where we were struggling to get these reports right, sometimes until 2 a.m.” Rob Shaw, Apera Asset Management. Read Apera Case Study.

I don’t know of any other system that can do consolidation the way AccountsIQ can. It takes a lot of complexity out of everything and that saves us a lot of time. It used to take two weeks to do our accounts; with AccountsIQ and other improvements, we now get our accounts out in five working days,” Wayne Copeland, Head of Finance, AES International. Read AES International Case Study.

About AccountsIQ

AccountsIQ’s award-winning SaaS Cloud-based accounting software is ideal for companies with multi-currency, multi company accounting and enhanced business analytics needs. The scalable solution enables the system to be used by any company, large and small. The platform is currently used by 4,000 customers in 85 countries, with 33 different currencies in use in 25 tax jurisdictions.

Discover the benefits of automation with our financial consolidation software. View Consolidation Software features. Read more about our multi company accounting functionality.

It’s a fact long observed over the years and well known throughout the commercial software industry:  “80% of our Clients use only 20% of our Software Product’s capabilities while the other 20% use 80% of it”;  Why, what’s the difference?  It’s all about Implementation, Implementation, Implementation…..

In this short article Darren Cran, Head of Client Services at AccountsIQ, gives us the benefit of his wisdom and considerable knowledge on what Finance Directors and CIO’s can expect when changing their accounting system, and what they can do to avoid many of the common pitfalls which, so often, result in poor, inadequate outcomes, and overly-delayed and overly-expensive implementations.

Darren has extensive experience in this area and in particular transitioning to a Cloud Accounting platform from legacy “on-premise” based systems. Darren and his team have managed many such projects from small simple implementations to large complex ones involving Multi-Group Structures with over 200 sites with extensive Business Analytics and Reporting. He has an extensive background in accounting and finance systems having trained with KPMG, served as management accountant and later CFO for a group of 20 companies before moving to his present role in AccountsIQ where he has brought our many Clients to that 20%/80% experience and beyond.

Expectations are very different now.  The basic month end is no longer enough.  You shouldn’t build a house for a growing family on poor foundations and finance functions are the same.  As no one is really interested in the foundations they have to be right and hence the importance of a well implemented system which is one that you can build on as the company grows.  It should be scalable if your company has growth plans.

CFO’s are being asked to step up and play a more strategic role in business.  Reliable Information is critical to facilitate good strategy and the finance function is usually the most trusted source of information to help key decision maker’s move a business forward.  As business gets more competitive and diverse in working practices the finance function is becoming increasingly more important.  Every transaction eventually visits the finance system and resource and sales systems are now increasingly integrating with finance too (e.g. Salesforce, MS Dynamics, Online ticketing and Reservation systems).  This puts finance in a unique position but it doesn’t happen by magic.  A good finance function is a combination of the right system and right people capturing data and reporting it to business managers in time.

In short, his message is that you should not underestimate and expect the changeover process to be simple (even though there are now many software aids which will ease the process)!  If enough time is spent at the design phase it makes for a much better experience as everyone has a vision of what the end goal is.  That’s the hearts and minds piece which is often overlooked.  In order to achieve this the implementation team need the support of the wider business leaders and community so that expectations are managed and risks understood.

It can be straightforward though.  The more you plan and prepare, the easier the experience will be. Changing your accounting system (and maybe, as a consequence, your internal processes also) is all about developing the pre-formulated goals and achieving the resulting long term benefits:  i.e. the increased productivity and efficiencies brought about by the changeover to the new Cloud Accounting system.  The initial move will require extra effort from all involved to bring about these results.   Some of the points to consider are as follows:

Select the right Software Provider:

You already know about the inadequacies and limitations of your existing Accounts package and consequently what you now require from your new system:  So, it should be fairly straightforward to match your needs to those that your potential Suppliers can offer.  Or is it?  Are you sure that you know what developments and innovations have taken place since you last looked?   There’s a lot more to be had now than just processing the Accounts every month.  For example, Business Intelligence, Executive Dash Boards, customised KPIs, Graphs and Charts, and “Drill Down” explorations and inquisitions, to name a few, which used to be the sole prerogative of the most exotic and expensive of database architectured systems, are now quite commonplace from some more advanced but modestly priced accounting software suppliers.

Most especially in the Cloud arena which is relatively unencumbered in terms of storage capacity and processing power versus older in-house based systems.  All of which can and will bring better insight into the performance and profitability of your business.  Fully transaction based systems will also constantly reflect the up-to-the-minute status of the business, literally.  Paperless Offices, On-Line Collaboration and Messaging, Cash Flow Projections, Email Communications, Off-Site working and so on, all have changed and replaced the traditional ways of doing business.  So, it’s very important to understand what a replacement system can also bring in terms of additional benefits, not just in the areas of day-to-day accounts production, but also in the areas of much improved and access to vital Management Information.  In addition, you need to ensure that the chosen replacement system is also scalable in that it has unlimited capacity and ability to continuously expand in volume terms as your business grows, but also that it can and will facilitate your ability to open up new avenues of business opportunities in terms of expansion.

Planning the Implementation:

Selecting the right software provider will go a long way to easing your implementation process and ensuring you have the right support you need for the future. After selecting, the number one issue in migrating to the Cloud model is the question of support – which is an absolute essential if the transition is to be the success you look for and deserve.  Therefore, during your selection process:

• Ensure that you will have a dedicated implementation manager;
• Check the provider’s support services (speak to existing clients of potential providers);
• Ensure that you will have access to a dedicated Account Manager going forward;
• Make sure there are SLA’s in place and are contractual.

In addition, having an implementation manager and team experienced in the world of accountancy is also crucial as they will fully understand your requirements and how to apply the new software to achieve the required outcomes.  You need to select a Supplier whose staff are completely proficient in both software and accountancy.

Speak to your potential software provider and ask them to talk you through a typical implementation process – and then speak to previous clients to ensure what they are promising is what they deliver.

Finally, make sure that the solution you select is one that can grow with your business. It would be a great shame (and waste of effort) to select a solution that you then outgrow only to find that your chosen system is limited in terms of capacity or that you have to “migrate or upgrade to a higher/later version” in terms of functionality, and you then have to repeat this process (when your business is larger, more complex and more demanding)!  When thinking about the future you need to consider new business opportunities; possibly additional sites or locations; new reports and new integrations with other systems that you don’t currently use.  Make sure that the chosen software solution is adaptable to such changing conditions and that your chosen solution is completely expandable in terms of transactions and data volumes and includes automatic access to enhanced and extended functionality.

Educate and Engage:

You are about to change an integral and long established part of your company’s processes and practices.  Many existing users of the current system will have developed their own ways of doing things and quite often change is not welcome as it means they will have to adapt and alter their way of working.  It might even mean that some people will have to change or alter their roles.  For example, implementing a Cloud based system will mean the end of the in-house system management in terms of Daily and Weekly backups and their rotation, no more Software and Security patches, no more transferring files to and from your accountant, and so on, since all of this is now fully taken care of and included as part of the Cloud service.

This means that the persons formerly responsible for these activities will now no longer need to carry out these tasks.  Others will be less dramatically effected, but will still have to adapt to changed and much newer and easier ways of carrying out, for example, electronic Bank Reconciliations, Vat Submissions, Invoice and Order Approval, and many other new processes and features.  The new Cloud based system will bring many benefits and you will want to encourage your staff to fully embrace these changes and recognise the long term benefits both for the company and their own personal future. In summary;

• Educate your team on the topic of the Cloud and what it means;
• Involve as many people as is feasible in the selection process in order to engender enthusiasm and allay any fears or suspicions;
• Ask your chosen supplier for access to a Demonstration Test accounts so that those affected can have a chance to “try it out”. This is especially easy in the context of Cloud based solutions since all you need is a Laptop.
• Explain future processes and procedures (as many will change due to the benefits of the Cloud). This may be a good time to re-write policies and procedures for accounting.

Engagement is about getting as many people as possible to “buy-in” to the future benefits of changing your accounting system. New systems and procedures take time to get used to and this can lead to resistance to change. Engaging people as early in the project as possible will engender acceptance and enthusiasm and will make the training and implementation steps much smoother.

Design and Plan:

Implementing a new system also presents the opportunity to revise some old, possibly outdated, coding and analysis systems in the light of the new system’s capabilities in order to gain maximum benefit from it.  To do this, however, you must get to know the new systems facilities and functionality in detail. So, work with your supplier’s appointed Implementation manager to get a thorough understanding of how it works and what benefits it can bring in terms of Business Information and Intelligence in the form of new Reports, Drill-Downs, fast Enquiries, Dashboards and Charts and so on.

The day-to-day operational stuff will flow as a matter of course with the introduction of the new system – but this area of management information is where you will get maximum benefit from the right design and set up of the company’s organisation and structure.  Now is a good time to re-examine existing structures (and possible future additions being contemplated), begin to write down Company and/or Group structures, Departmental structures within a Company, Charts of Accounts, Sales Analyses criteria and design initial sketches and thoughts on Reporting.  Some points to consider:

• Plan pre-project design meeting(s) with your implementation manager to ensure that you both understand the objectives to be achieved in terms of Management Info;
• Plan and assign roles and responsibilities within the implementation team;
• Design the Group (if relevant) and Company Departmental Analyses structures (Divisions, Branches, Locations, etc.);
• Design the Chart of Accounts and Sales Analyses Coding(s);
• Agree to scope of the data migration plan;
• Thoroughly plan the key Reports, Charts, and Management Information;
• Agree milestones and key dates for the implementation process;
• Agree training timetables and lists of users requiring training;
• Agree a nominated “Super User(s)” to receive additional training and all training materials;
• Review training material and customise towards different planned users of the system;
• Design and agree each user access and user profiling and workflow processes.

At this point it really is about ‘brainstorming’ and understanding the project between the project leader of the business and the implementation manager. The more the two parties understand about each-others requirements, the better the implementation (and future use) of the system.

Setting up the user profiling can be quite important. If you have a large number of low profile users that only require minimal access to the system then removing un-necessary access to un-required functionality will make the system more appealing to these users.  An accounts system can be overwhelming for minimal users if presented with the systems entire Menu structure and if the user only sees what they are required to see then they will be a lot more comfortable with the system.

Finally, if integration is required then this must be discussed and planned at this stage. Many Cloud systems are very accessible in the transfer and integration of data. One of the key points here is to agree which technology partner will be handling the integration (i.e. who does the data request and push) and where the integration sits in the overall technological hardware system.

Train, Train & Train:

One of the most frustrating situations for everyone concerned is the Client who says he knows “how these things work, we’ve done it before” (I’m reminded of one particularly insistent Client in the USA) and as a consequence “doesn’t need or want to undergo all that wasted time and expense in training”.  The outcome, inevitably, was a situation where our Support Staff were continually being interrogated as to “how to do this?”, “how do I do that?” etc. to the frustration of both parties.  That situation went on for several months until the Client’s staff eventually convinced the CFO that they needed proper training on the operation of the system – after which all was peace, quiet and contentment.

While this circumstance doesn’t occur that frequently (and most usually happens in the event of a Client moving on to a new system having previous experience of an existing system), it is however symptomatic of quite a number of Accounting Software suppliers adopting a “Super Support Service” (and, of course a higher level of fees) in order to continue to service these types of clients who believe they understand the systems capabilities and, inevitability and sadly, fall into the 80%/20% category.

Training comes in many forms and different users will require varying levels of training. Once again you need to plan different training methods and events for differing users. Some light level users may simply require simple training cards on how to perform a specific task, whilst other users will require substantial training (such as “super users”). The first task here is to split the users by training level and define what is required for each level. You then need to decide what training tools are required for each user level and set dates for completion of such training. Differing training methods may include:

• Training cards on various functionality
• Training videos
• Training documentation such as in-depth articles
• On-line training guides
• Webinars
• Webex or one to one training sessions

Cloud technology roll-outs are very simple to conduct since there is no software to install or deploy – it’s already there and ready to use.  All that needs to be done is to parameterise your use of it. Every user can very easily access the system once they have been given the appropriate permissions.

How to Guides:  

Some functional areas can be quite complex, such as Bank Reconciliation, Multi-Company Consolidation, VAT Preparation and Submission, Multi-Currency Revaluation, and so on.  But, with the right information to hand they can be, and are, very straightforward.  Comprehensive “How to Guides”, with their step by step instructions and lots of background information as to how the system behaves and operates in these areas can be very useful.

Hand Holding Period:

Following the “Go Live” date there will be a period of Hand Holding.  This is where the software supplier works alongside you in ensuring everything is running smoothly, like a special support period.    At this stage, it is essential that you and your staff test out every aspect of the system to ensure its completeness and that all users fully understand their interaction with the system and are happy with it.  It’s important that the Training is fully complete in order to eliminate the necessity of further stages.

The Hand Holding period is also a great time to get feedback from users and to pass this feedback onto the software providers. Remember that Cloud software is a product that continuously evolves and develops and your feedback is very useful market intelligence for the software developer.  Additionally, you may find certain process and/or reports, whilst a great idea in theory, may not be ideal in practice and therefore need adjusting. This is the period to iron out small issues and ensure the system is moulded to your exact requirements for now and the future.

Post Implementation:

The SaaS model is a new way of working with Software suppliers, albeit some traditional software suppliers are struggling to alter their business models to this new way of working. In the SaaS model you are continuously paying for the use of a Software application and the support provided in a partnership model Therefore ensure your supplier has reliable, efficient support on hand when you need it.  As Cloud software product are continuously being developed there will only ever be one version of the software released to all clients. Therefore, ensure that you give feedback to your dedicated account manager to enable your desired upgrades, functionality requests and general feedback to be included in future upgrades.

Some decision makers and business owners, including many in the Accounting and Audit profession, still have reservations about the usefulness of the Cloud in improving their efficiency and operations or those of their clients’ businesses.  It could be just another passing ‘fad’ invented by the IT profession to liven up their revenue prospects in the face of reluctance to change existing systems.  Others are certain that it will have as great an impact on the organisation and competitiveness of medium-sized enterprises as did the introduction of PC based systems to small businesses, which effectively put paid permanently to the many “Bureau” services that preceded them.

In this final document in our series exploring Cloud Accounting, we discuss the benefits the Cloud can bring and show how this is already reshaping businesses.  Regardless of the arguments for and against Cloud Computing in general, there is now very strong evidence of a fast and increasing take-up of this technology by businesses and now, most especially, as a platform for accounting services, which has significant implications for the Accountancy and Audit professions.

Part 1 – An Introduction to the Cloud

Part 2 – A look at Cloud Security

Part 3 – Analysing the Cost Savings of Cloud Computing

Part 4 – Cloud Accounting: Radically Changing the way we work

There’s absolutely no doubt that Cloud Computing has already had a big impact on many businesses.  The evidence is there for all to see.  The traditional local Travel Agency business is all but wiped out as a result of Customers now having direct access to research and an ability to book relevant products on-line.  Bookstores are decimated through the advent of Amazon and E-Readers.  More and more music is being downloaded from iTunes to the detriment of high street retailers.  Most trade publications have now moved on-line.  AirBnB is disrupting the lower cost Hotel and Bed & Breakfast businesses and Netflix, et al, is likely to severely disrupt the traditional TV channels delivery model.  And what about Uber and Halo!  Banking has been transformed (most banks use a private Cloud, but it’s still Cloud Computing).

It’s all around us with more and more businesses adopting Cloud strategies, and many more in the pipeline.  There is a revolution going on in the way business is now being conducted, with significant disruption to the traditional model of many businesses and equally significant opportunities opening up for new businesses, or indeed, for new ways of conducting business for existing companies.  And all of this has happened before credible Cloud Accounting solutions, a relative recent innovation, became available.  This too is presenting great opportunities, and also threats, to established practices in the way that business is transacted, transactions processed and management information presented, and savvy business operators and their accountants are adopting it to achieve competitive advantage.

Collaborative Accounting

In addition to the many benefits described in the earlier Articles in this series, one of the most overlooked benefits of Cloud Accounting is its ability to facilitate Collaboration, both between systems using Webservices for easy integration and between system’s users via anytime, anywhere access.  Let’s look at a few examples:

Accountants providing outsourced services to their Clients using traditional Desktop based packages have a problem in this area.  If the client is looking after the prime books, the accountant cannot do any end-of-month Journal Postings, reconciliations, allocations, budget comparisons etcetera until there is a hand over of the account system files from the Client.  This usually takes the form of an electronic file transfer, usually unencrypted backups sent via email, or even exchange of physical media like CDs – both potential security risks.  Once the accountant has control, it creates difficulties for the Client who has to suspend normal posting of new transactions until the Practice has finished its work and returns the adjusted system files.  If they continue posting they risk overwriting any new postings since the last transfer when the returned transferred file is restored.  Of course, there are elaborately conceived procedures to avoid these shortcomings, but using a Cloud based system both parties can Collaborate simultaneously without interfering with each other or suffering any interruption to the progress of the business into the new month.

Collaboration via a cloud application also extends to customers being given online access to a portal to view their statements, download any missing invoices etcetera; PO and invoice approval directly online from a smartphone, without even accessing the accounting system.  It also extends to automating postings between companies in a group or between any collaborating businesses, like franchisors-franchisees. Online, anytime, anywhere access means collaboration from all the people who need to be involved, without them needing to be in the office or even in the organisation.

Remote Access

Another area of collaboration facilitated by Cloud Accounting is access by remote locations and mobile field operatives.  The advent of the Internet together with Cell-Phone technology (Broadband) provides Mobile Computing capability on Laptops, Tablets and Smartphones.  A Cloud based system  enables Maintenance Engineers on location to directly access the Inventory System from their laptop to determine the availability of spares, or raise Orders for such items not in stock, which can go directly to an approver if necessary to approve online.  Sales people can look up customer account details, create new Customer accounts, carry out up-to-the-minute Credit Checks and create new Sales Orders directly in the system instead of having to phone or email the office at the end of the day.  Similarly, delivery people can confirm their customer deliveries, scan in proof of deliveries and enter expense claims etcetera directly into the system.  In addition, remote locations or remote business units located in different towns or cities or other off-site facilities, can also collaborate by being directly connected to the Cloud based system over the Internet.

Remote Working

Cloud Accounting also facilitates increased productivity through homeworking, which allows valued and experienced staff to work around family commitments or indeed weather disruption involving long travel delays, or flexi-time working covering for example outside hours cover for different time zones, to maximise the productivity for the business.  You can also gain access to lower cost workers in other countries if your business lends itself to that sort of offshoring, allowing offshore and direct employees to collaborate via a system available anytime anywhere via a browser.

Experienced part-time, retired or flexi-time employees might also help to overcome peak workloads and cover for maternity leave, prolonged illness etcetera posting transactions directly into your system rather than preparing them off-line and sending back files to you for subsequent update – all as a result of the unequalled collaboration that Cloud systems like AccountsIQ brings to your business model.

Are there any challenges with cloud accounting?

For Accountants the transition to Cloud Accounting presents opportunities for both efficiencies within the practice and the opportunity to add new client services to existing and new clients.  There are also some challenges, particularly concern about possible reduced fee income – i.e. if the clients are doing more themselves then surely they will pay less.  Not necessarily so – it has to do with providing more high value service and less low value data entry.  Replace the drudgery of keying in shoe boxes full of invoices with analysis of how the business is performing and how it can improve profitability. Prepare payment runs but collaborate with your clients by allowing them to review and approve the payment runs online.

By adopting a Cloud strategy your practice will become much more efficient in dealing with its client base, due to the Collaborative approach it brings to the client/accountant relationship.  And it’s no longer just month end activity: it is continuous interaction throughout the whole month and year.  In addition, by adopting one or at most two of the best Cloud accounting solutions, your staff no longer have to familiarise themselves with the operation of many desk-top systems, with a myriad of different versions, which are likely to have propagated your entire Client base.  You may have to keep copies of many different Accounting Packages across multiple versions in terms of their age and functionality to be able to service your clients who are on those systems/versions.  So much time is wasted ensuring you restore to correct versions and making sure you don’t accidentally overwrite the live data with a previous backup and fixing it when it does accidentally happen. You also need to be sure your staff know how to use the multiple versions you are dealing with.  No doubt you have worked out how to streamline this but it took a lot of effort to get there and a lot more to maintain it.  Cloud Accounting gets rid of all version issues or needs for backups/restorations and allows you and your team concentrate on the accounting service, not managing the technology, meaning improved efficiency and profitability.

Also, in addressing the concerns about reduced Fee Income, what most commentators forget to mention is that if your staff have to do less data entry work, you can take on more clients and/or do more value added work that clients will be much happier to pay for!  If you have more clients, you have more of a base for other services and can do more valuable work for them.  Your staff will also be happy to do more interesting work – if they are ambitious they want to have more interesting challenging work that is valued by their clients.

The increased productivity offered by Cloud products (managing multiple clients on one system, paperless offices, invoicing and statements OCR scanning facilities and collaborative continuous access to each client) will greatly increase productivity per capita.  Cloud accounting systems like AccountsIQ are also completely scalable in that it can easily be configured to match and satisfy the complete range of business needs, from those with just basic straightforward requirements, through the middle ground and right up to Clients who have complex Departmental structures within Multiple Company, multi-currency group structures.  It can be linked with EPOS and many other systems that it can collaborate with to provide a total solution to the unique requirements of your clients’ businesses, be they Charities, fintech companies, Financial Services companies, and many more.  To put the scalability and collaboration in perspective, AccountsIQ has 4,000 customers in 85 Countries, who between them have 40+ different base currencies, many that need to collaborate as part of a group consolidation across multiple countries.

However, the greatest benefit for Accountancy practices from adopting Cloud Accounting systems is that of being able to develop and offer higher end services to your clients to the benefit of both.  This is about providing Business Intelligence, KPI’s and Metrics, Cash Flow Forecasting, Real-Time Dashboards and better, more informative and focused, Reports – across all aspects of the business and especially in the area of Departmental Performance Analysis.  With a financial management system like AccountsIQ these capabilities are part of the package – not just accounting.  Most of your Clients don’t have the skills or time to build this kind of sophisticated Executive Reporting.  This is where you can deliver high quality Management Information services to your Client base resulting in, and assuring, your continued, even enhanced relationship with your Clients.

In this context, one would think that accountancy practices would embrace the Cloud and actively seek to move existing clients to the Cloud so that they can improve productivity and build their fees by offering higher value services.  The reality is somewhat different; other than some early adopters the accounting profession seems to be largely sitting on the fence waiting to see what will happen.  Many practices say to us “Sure, if one of our Clients asks to move to the Cloud, we’ll contact you”.  The problem for such practices is that, in reality, any forward thinking “go-ahead” client will be fully aware that their Accountancy partners are not equipped to provide these advanced services and most likely will be already looked at competitive offerings that can and will provide these extended services, and deliver a seamless solution in the cloud where they don’t have to worry about systems.  This is happening and clients will not wait around! We have seen this.

In summary, for both Businesses and Accountancy Practices, the Cloud Accounting model represents a step change in the way that business is now managed, with much higher levels of teamwork and collaboration across the business together with the opportunity, not just to produce the monthly management accounts, but also to have real time up-to-the-minute knowledge on the progress of the business, together with the most sophisticated Management Information and Business Intelligence capabilities, without the need to worry about software and servers, which is now a utility you use and let others worry about running.

This is the final article in our four part series. If you would like to see how AccountsIQ can help you accelerate and transform your finance function. AccountsIQ also work with charities to transform their finance function. Register for one of our cloud accounting webinars, or request a Demo.

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