cloud

Article Dean Dorton

The biotech industry is booming. Projections suggest it will reach a $2.44 trillion market valuation by 2028 after growing at a CAGR of 15.83% for the next seven years straight. Forces driving the rapid expansion of biotech include supportive government policies, excited investors, new products, and rising demand – and they show no signs of changing in the near future.

Growth looks all but assured for any biotech company with a viable product or service and a competent business plan. But growth can be positive and negative. Companies that expand quickly and easily often leave themselves unprepared for running a bigger company with broader regulatory requirements, a larger product line, additional revenue streams, and a diverse market footprint. Biotech companies are often victims of their own success – phenomenal startups that grow into unsustainable enterprises – because they don’t scale their accounting and financial capabilities along with the rest of the company.

Running a robust accounting department depends on people and processes, of course, but it ultimately comes down to technology. Relying on under-powered or outdated software (often the product in place since day one of the company) puts a hard limit on what accountants can accomplish – and how much companies can grow. For fast-growing biotech companies, upgrading accounting software should happen sooner rather than later, and cloud financial management should be the only option.

Benefits of Cloud Financial Management in Biotech
There’s a reason why 75% of the life sciences companies studied by Gartner adopted cloud-first strategies in recent years: They see clear and compelling benefits to the cloud. Those include:

  • IT maintenance and security handled by cloud providers
  • Remote access to data and tools from anywhere.
  • Endless data storage and computing power available on demand
  • Redundancy and backups in the event of disaster

That list goes on. However, it’s more important to understand the overarching benefit of cloud financial management for biotech: stabilizing growth. Companies on an upward trajectory often encounter unexpected obstacles, especially in a heavily-regulated industry like biotech. As such, they don’t need accounting software to meet their needs; they need software that exceeds their needs and rises to occasions they don’t anticipate. To put it differently, they need software for today as well as tomorrow. Cloud financial management uniquely fits the bill.

The right product can handle the most complicated and consequential accounting challenges facing promising biotech companies. Everything from complying with revenue recognition standards to evaluating M&A opportunities becomes more streamlined. Likewise, critical processes involved in research and development or budgeting and planning run more efficiently and cost effectively thanks to the right cloud-based product.

Sage Intacct is a cloud-native financial management platform that offers the extensive accounting capabilities required of mature (or maturing) biotech companies. Beyond that, Sage Intacct delivers a superior cloud experience designed to enhance speed, accessibility, resilience, communication, collaboration, and so much more. Calling Sage Intacct accounting software doesn’t do it justice because it functions more like a complete business tool for biotech companies, facilitating growth at any speed or scale.

To demo Sage Intacct, contact a team at the intersection of accounting, technology, and biotech industry growth, contact us.

Article Dean Dorton

Remember in Back to the Future, when Marty McFly discovers that Doc Emmett Brown has built a time machine out of a DeLorean? Doc Brown says, “The way I see it, if you’re going to build a time machine into a car, why not do it with some style?” Time travel is not the only phenomenon with style. With artificial intelligence, automation, cloud technology, and other high-tech trends, the future of accounting is looking pretty good, too- check out these top 6 shifts we predict.

Artificial intelligence (AI), once found in futuristic movies, is now in our everyday lives. From Siri and Alexa to customer chatbots, AI makes it easier to live, work, and play. Artificial intelligence can be defined as “technology that enables computers to perform decision-based tasks previously left to humans.” One form of AI is machine learning. The more machine learning is used, the better it becomes at analyzing and decision-making. AI helps accounting teams with everything from automating routine tasks to using natural language processing capabilities to interpret thousands of contracts or deeds, a capability that accounting firm Deloitte has implemented.

Automation. Technology is allowing finance teams to automate key processes such as accounts payable, so they can focus on higher-value work. Patrick Villanova, former audit senior manager at PwC, wrote in Accounting Today, “Let the machines generate the numbers; accountants can analyze their significance for varied business and process owners to enhance the organization’s long-term financial performance.”

Customization. For greater business agility, accounting teams need the ability to easily tailor their financial management software to fit their needs now and in the future. Instead of manual workarounds or expensive, hard-coded customizations, today’s solutions are highly adaptable. From user-friendly report configurations to unique document workflows that can be automated without custom scripting, modern accounting tools fit the way you work—and not the other way around.

Flexibility. Too often, accounting and finance teams don’t have formalized processes in place, or if they are, they’re not based on best practices. Best-in-class accounting software helps users see immediate process improvements. More importantly, this type of software can be easily adjusted, extended, and integrated to match a company’s unique needs. An AICPA whitepaper by Fox Financial Planning Network noted, “While automating workflows is a critical step in efficiently delivering client services, an even more important issue to delivering a personalized experience is to put in place workflow architecture that has flexibility.”

Control. Today’s accounting pros need the ability to gather instant insight into their business’ financial and operational performance. That way they can manage growth, reduce risk, and help their company take advantage of opportunities as they come their way. They leverage a single source of truth to understand the true nature of their business, and real-time dashboards and flexible reports give users across the organization access to information on how and when they need it.

Anytime-anywhere cloud capability. The beauty of cloud software accounting tools is that they can be accessed, 24/7, from any Web-enabled device that has an Internet connection. On the road, in the office, at home, or even on the beach, a company’s finance team can do their job as needed, when needed. With a growing remote workforce and geographically dispersed business entities, forward-thinking businesses need the freedom and flexibility of the cloud. 

Jonathan Bareham, director of the U.K. accountancy firm Raedan summed up how many of these different trends work together. He told the Journal of Accountancy, “We see AI as the next step in automation and efficiency provided by cloud software. It will increase time savings, reduce errors, and aid compliance.”

There has been some concern in the industry that technology will displace many accounting functions. But, unlike Doc Brown not needing roads to travel into the future, accountants will always be needed. Derek Bang, chief strategy and innovation officer at accounting firm Crowe Horwath, said, “The accountants of the future will exist, but they will know how to interact with machines.”

For more information on accounting, automated financial management, and cloud technology, contact us!

Article Dean Dorton

New ethics interpretation on data-hosting services

By Jason Miller

Are you currently providing a service that will soon impair your independence?

Are you currently providing a service that will soon impair your independence?

The AICPA Professional Ethics Executive Committee (PEEC) recently adopted a new interpretation, Hosting Services, which appears in the AICPA Code of Professional Conduct’s “Independence Rule” (ET § 1.295.143) under “Nonattest Services” and applies to practioners who provide nonattest services to attest clients. Under the new rule, providing hosting services to attest clients will soon (effective September 1, 2018) impair independence when a CPA takes responsibility for maintaining internal control over an attest client’s electronic information.Where is the new line?

Your firm’s independence will be impaired if you:

  1. Assume responsibility for safeguarding or maintaining internal control of a client’s financial or even critical non-financial information;
  2. Control client data such that it becomes incomplete or only accessible through the CPA; or
  3. Provide disaster recovery or business continuity services for an attest client.

In these three service areas, the PEEC is concluding that by providing hosting services, a CPA is delivering services that cross the “management activity” restriction.What are some examples that impair independence?

Cloud-hosted accounting software: If the CPA firm is managing the hosted software on their internal hardware or leased cloud servers, then the client is dependent on the CPA firm for controlling their critical financial information, and independence is impaired.

Website hosting: If the CPA firm hosts a client’s website on their internal hardware or leased cloud servers, then independence is impaired.

Disaster recovery: If the CPA enters into an engagement with the attest client by which they are playing a role in holding the client’s data backups or contingent processing environment to be used for disaster recovery or business continuity, then independence is impaired.

Contract management system: If the CPA firm offers the attest client services for a hosted solution to manage the client’s business contracts, then independence is impaired.

Please note, the preceding list is not intended to be all-inclusive.

What are some examples that do not impair independence?

Cloud-hosted accounting software: If a third-party software provider is responsible for the hosting, management, and availability of the hosted accounting solution and the client is controlling the access to the system, an independence issue would not be created. The primary differences between this scenario and the one above is the CPA is not controlling access to the system, and the client can maintain access to the information independent of the CPA. The client should be responsible for managing user access to the information for both their employees and the CPA team members.

Storage of client information for performance of engagement: The CPA may maintain copies of a client’s information required to provide engagement services. Information should not be the only copy or originals.

Client portal: The CPA firm may provide a secure electronic service to share information back and forth with a client, again as long as the information is required for the CPA to perform approved services and the information is not the only copy or original.

Please note, the preceding list is not intended to be all-inclusive.

Public accounting firms should always consider all applicable rules as defined in ET § 1.295 when providing non-attest services to attest clients. As a reminder, the changes discussed in this article do not take effect until September 1, 2018. This allows for adjustments to existing engagements.

The PEEC is also evaluating revisions to ET § 1.295.145 (Information Systems Design, Implementation, or Integration). Watch for proposed changes, which are expected to be released later in 2018.

As originally published in Kentucky CPA Journal

Article Dean Dorton

By: Jason Miller

Your business is succeeding and possibly growing, with more customers and increasing revenue streams. Congratulations! Life is good. Or is it?

A recent Aberdeen study found that 64 percent of business managers have seen their decision-making time shrink over the last year. Management information needs are now defined in terms of days and hours, not weeks and months. Does this sound like your business?

Your business is beginning to dread monthly and quarterly closings. Your accounting is inundated with decentralized payables and inter-entity transactions, turning consolidation into a nightmare. Processes you could once handle easily with spreadsheets are now slowing closings to a crawl, with inaccuracies and delays costing your company time and money. If your business has multiple locations, trying to consolidate your books can be a quagmire of multiple, complicated spreadsheets and endless headaches.

Take a step back and examine your business’ financial operations:

  • Are your team members spending hours manually manipulating data in Excel spreadsheets?
  • Is your A/R aging increasing?
  • Is your monthly financial information untimely?
  • Do you really know what your financials are telling you?
  • Is your current system taking up too much time and resources on back office accounting processes?

Everything about business is changing — how customers evaluate products, the volume of real-time data available to chart the course of your business, and the mobile access your employees have to critical systems. Whether businesses are ready for it or not, everything around you is changing fast and speeding up.

It’s time to get a competitive edge — or get left behind

As companies strive to cost-effectively scale their business, cloud-based accounting solutions are being recognized as viable and valuable solutions. The same technology driving this wave of change and challenge can also be the rising tide that propels your business forward.

It’s time to adopt financial technology designed for the digital age. Stay ahead of the competition by gaining deeper visibility into your business and accelerating processes that position your company to win today and in the future.

The time for action is nowAchieving a fast close is a change management initiative, because regardless of your approach it requires your people to have the right technology. Cloud-based applications such as Sage Intacct offer many concrete benefits that traditional on- premise solutions just can’t match. When you choose a cloud-based application you dramatically reduce – and can, in some cases – virtually eliminate many IT infrastructure costs. Not only do you eliminate the need to buy and operate servers, you can also reduce operational costs in your IT department. Suddenly, you no longer have to pay for the resources to maintain servers, conduct and secure backups, update and patch software, maintain databases, plan and execute migrations or new installations.

When evaluating your cybersecurity preparedness, there are several factors to consider. Let’s take a step back – right now, your priority is your business. You’re buying new technology, investing in new infrastructure and most likely trying to adapt to changing business models like cloud. It’s all good work but it takes time and effort.

Hackers desperately want access to your customer data, employee data, or intellectual property because it’s worth a lot. A single theft could cost your company severe financial damage. And sometimes, in the case of ransomware, all they have to do is lock it down and force you to pay to get it back as you’ve heard about in some of the latest attacks.

Why do you hear terms like “dynamic threat landscape” these days? Because you aren’t facing a group of hacktivists in a basement anymore – you are now facing professionals with a lot to gain.

Your business and the threat landscape around you are ever changing.  It is imperative that your organization conducts an annual cyber risk assessment. This allows the entire organization to consider current and future risks and put forth a plan to mitigate the identified risks.

Some businesses will run out and acquire every new solution they hear about for protecting their organization against cyber risks. While having a multi-layered approach to cybersecurity is important, it is also equally important to have an organized approach and to use tools that are designed to work together.  If your solution is designed properly, you could end up with what we call the security effectiveness gap. As you add more solutions that don’t work together, the complexity exponentially increases. So, every time you add another solution or another vendor, you add another gap – another vulnerability.

A robust cybersecurity solution will:

  1. Stop threats at the edge
  2. Protect users where they work (especially when team members are working remotely or on a personal device)
  3. Find and contain problems fast
  4. Control who gets on your network and from where
  5. Simplify network segmentation
  6. Provide compressive monitoring and detection

Streamline processing and harness the power of the cloud

Does moving to the cloud mean sacrificing functionality? Not at all. You can find the right cloud-based platform for you, like Sage Intacct which is the endorsed solution of the AICPA and designed to meet the financial accounting needs of your company. More powerful accounting; less internal resources required and lower costs; as well as anytime, anywhere access – cloud-based accounting is certainly worth a closer look.

If you or your business are looking to be successful as technologies continue to advance, your system should:

  • Provide access to data that is available anywhere, anytime (completely mobile-friendly)
  • Streamline processes so your financial statements are ready when you are, completely eliminating manual report preparation
  • Display the robust unique KPIs important to your business in a meaningful manner
  • Be completely scalable to your business size so you don’t have to invest in other IT infrastructure
  • Deliver real-time visibility into key operational metrics and streamlined processes, eliminating manual data entry and Excel-based financial reporting
  • Safeguard assets through comprehensive internal controls and segregation of duties
  • Make it easy to quickly compare performance across entities including multiple-locations
  • Let you easily switch between consolidated and local views for further insight into the figures

Whether you’re a small business, non-profit organization, mid-sized business with one or two offices in other states, or a large, global enterprise with diverse geography, it is important to contact a professional with cloud-based accounting systems expertise and experience to help you maximize your software investment by seamlessly integrating the elements and entities of your business into the right cloud-based accounting platform.

Learn more about Dean Dorton’s Cloud-based accounting solutions.

As originally featured in Louisville’s Business First

Article Dean Dorton

Raleigh, N.C., January 10, 2017– Massey Consulting, a leading accounting software consulting firm in Raleigh, NC, announced that they have signed an agreement to become an Adaptive Insights partner. Massey Consulting will resell, implement, and support the Adaptive Suite. This agreement will allow Massey Consulting to continue to expand its consulting offerings for its current customer base as well as future customers.

“The Adaptive Insights partner channel is a critical component of our business strategy,” said Carolee Gearhart, senior vice president, customer success, and global channels. “We select our partners based on their business focus and ability to extend the value of our cloud planning solution. Massey Consulting enables us to further broaden our reach to nonprofit organizations across the US and Canada that want to adopt an active planning approach. We look forward to a mutually beneficial partnership with Massey.”

“Adaptive Insights is the best-in-class product for budgeting and forecasting software,” said Massey Consulting founder Philip Massey. “They are a natural fit with our current ERP software solutions as well as our company motto of only offering our customers the best possible products for their businesses.”

Adaptive Insights is the leading cloud-based planning, forecasting, reporting, and analysis software that is fully integrated with Intacct. The company’s Adaptive Suite enables organizations to collaboratively plan and model, easily access real-time analytics, streamline complex reporting, and accelerate financial consolidation.”In order to better serve our customers and increase their effectiveness through leveraging technology and best practices, we continue to expand with our ISV partnerships, and Adaptive Insights was the next logical step,” added Massey.

Massey Consulting offers multiple resources for nonprofits and businesses investigating cloud-based solutions. In addition to several white papers, Massey Consulting offers numerous webcasts (https://www.masseyconsulting.net/calendar/) on a variety of cloud technology topics.

About Massey Consulting

Founded in 2002, Massey Consulting is a reseller for accounting software products Intacct and Microsoft Dynamics GP. Our consultants boast a wealth of practical field experience gained as controllers, accountants and information system professional in a wide range of business environments. We are certified, recognized experts in each of the software solutions we offer. Our clients benefit from efficient, integrated solutions that allow them to focus more their business and less on their software. Massey Consulting currently serves over 80 clients across the United States and Canada.

Media Contact:
Catherine Cottingham
919-508-6063
Massey Consulting
Catherine@masseyconsulting.net

Article Dean Dorton

I’ve been involved the implementation of accounting software for more than 20 years and have seen a great evolution of the accounting software marketplace. Currently the biggest shift taking place is the move from traditional “on premise” (the software is installed on a local server) to Cloud-based accounting systems. Because I work with both types of systems every day, I decided to highlight why vendors are moving their accounting software to the Cloud. Specifically I will focus this discussion on the investment cost associated with maintaining a traditional accounting software product versus using a Cloud-based accounting system.

Servers

For traditional “on premise” systems, you’ll typically find a server room with racks of routers, servers, hard drive arrays, and tape backup systems. Manning that room are one or more highly trained technicians who understand concepts like “active directory”, “network shares”, and “virtual servers”. All of this equipment is necessary to run the accounting system. In contrast, Cloud-based systems only require a desktop or laptop computer along with wired or wireless access in the office. The users simply access the Cloud-based accounting system from the Internet. Many companies using Cloud-based applications can rely on “IT for hire” firms for periodic IT support because their Cloud-based systems require so much less support.

Workstation compatibility

Traditional “on premise” accounting systems use the computer hardware, operating system, and network to make the system work. This requires that the workstations and servers meet the software vendors “compatibility checklist”. If the product will not run on Windows 8, then you would need to order new workstations with the older Windows 7 product until your accounting software catches up. Network servers need to be compatible too, so Windows Server 2003 or SQL Server 2005 might not work with your traditional system, requiring further upgrade and expense. Cloud-based systems are “OS agnostic”, meaning that as long as you can connect to an Internet browser you can log onto the accounting software. That also means users can run Cloud-based systems on a Dell laptop, an Apple IPad, a Galaxy tablet, even a smartphone if it can browse the Internet.

Updates & upgrades

Most traditional “on premise” systems require updates to resolve software bugs or compatibility issues. Software upgrades, which represent major changes to the accounting software, typically take one to several days and require that all of the users are out of the system. During that time the accounting staff cannot perform their functions while the software team performs the upgrade. If the business has invested in custom programming of the accounting system, they typically need to wait until the programmers have re-programmed their product to be compatible with the new release, and thus most users wait much longer before moving to a new version that might offer new features or functionality. In contract, Cloud-based accounting systems typically offer updates every three to six months, and provide that functionality to users as part of their normal subscription. Users can elect to turn on new features as they deem necessary, or keep their system exactly as they like it.

Data security

Now that data backups can be made over the Internet, system backups can finally be secured off the customer site. But in the event of a disaster (e.g. server failure, catastrophic weather event like a hurricane, etc.) the recovery of the accounting system still requires that the accounting system be down for a period of time until the computer system can be recovered. The recovery of the system could take as little as several hours or may stretch for days or weeks, depending on how much equipment needs to be replaced, its availability from the vendor, and how much data needs to be restored. Statistics on disaster recovery cite that one in four businesses that experience a disaster never recover. Cloud-based accounting systems are typically backed up in redundant locations, so that if one location experiences problems, it’s second (or third or fourth) can continue to allow users to access the accounting software without interruption. Further, if the users cannot access the business environment (the office was devastated by a hurricane and has no power), Cloud-based users can simply make a connection to the Internet from another location and continue to perform their accounting work.

In conclusion, Cloud-based accounting systems offer an opportunity for businesses to quickly recover their initial investment through a lower cost of ownership. They can also benefit from a quicker ROI (Return on Investment) while enjoying enhanced performance using the latest technologies available through the Internet.