Cloud Accounting Intacct

Intacct – The Virtual CFO Story of Your Numbers

Think of the five most boring jobs there are. Is medicine there? No? What about law? Still no luck? Hmmm. Accounting? Did I get it right that time? When I mention an accountant, do you think of someone with glasses, with a calculator and a pen in one hand and a set of financials in the other? I’ve got a surprise for you. With Intacct, accounting for the future is definitely getting more fun. Interested to know how? It is by being a virtual CFO – that missing link in most organizations.

Accounting is not merely coding numbers, paying taxes and preparing financial statements. Accounting is the story of your business. It’s your book, the biography of the business you’ve built from the ground up. And Intacct has just the storyteller for you – beyond the spreadsheets and GAAP reporting to operational insights for decision-making. What’s your story? Intacct can be the tool to showcase it in a meaningful and insightful way.

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This is the heart of virtual CFO services – the transformation of information from just numbers on a page into measurable, actionable tools. Intacct provides natively the mechanism you need to compare your client’s internal decisions and success factors to those of others. As accounting professionals, use of Intacct enhances our ability to interact with the data beyond the numbers, moving us from transactional services to the higher value services (CFO level).

What Exactly Are Virtual CFO Level Services?

Chief Financial Officers (CFOs) look beyond the transactional level of accounting. They need to know the story the numbers tell, and decide on a course of action based on all the information – both financial and non-financial. By utilizing Intacct’s statistical accounts and customizable dashboards, this story of information can be made easily accessible and automated.

Accounting technology has advanced to feature more robust cloud-based platforms, deeper integrations with third-party applications, real-time collaboration, and customizable dashboards. This gives you the ability to be a key contributor to a client’s continued growth and long-term success by shifting services from a transactional, historical view to high value advisory. I know what you are thinking – “How can we achieve all of this with Intacct?”

We can use Financial Ratios, which provide a deeper understanding of your data, and Key Performance Indicators, which relate financial and nonfinancial data to help achieve your objectives. Responding to this need, Intacct has delivered the Trusted Advisor Model. Let’s explore the native features within Intacct that make your ratios and key performance indicators come alive.

Financial Ratios

Financial ratios show the financial health of your business. They are reviewed by auditors, management, and stakeholders. As virtual CFOs, we want to show the relationships between ratios and the business accounting data so that benefits can be calculated. Comprehensive financial performance review leads to valuable input and strategies to continually improve business processes and growth. As such, we are always concerned with the five main categories of financial ratios:

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  1. Profitability ratios – shows your percentage return, use of assets efficiently, and managing the effectiveness of operation.
  2. Asset efficiency ratios – measures the efficiency of your company in the use of your assets.
  3. Debt ratios – represents the total amount of assets financed by debt.
  4. Market ratios – measures the return on each shareholder’s investment.
  5. Liquidity ratios – focuses on ability to pay its short-term debt (current asset against current liabilities.)

These are numbers that we always hear about but rarely monitor because of the time and effort it takes. With Intacct, though, the process can be automated with these simple steps:

  1. Identify the ratios to report.
  2. Create statistical accounts, financial accounts, or both.
  3. Create computation accounts groups.
    • a) Include your accounts;
    • b) Define your formula.
  4. Optional: Create a group (or groups) of Account Groups in which to add your computation account.
  5. Create or edit a report with an account report structure.
  6. Add your group of account groups or computation account groups.
  7. Save your report. Your report may include one or more, or completely comprise, ratios.

Key Performance Indicators (KPIs)

Intacct As important as financial ratios are, CFOs go beyond the numbers. CFOs see the bigger picture, and know that the numbers only paint half the picture. The other half comes from your non-financial data.

Key Performance Indicators are driven by targets, and you can design hundreds of KPIs, but finding the right balance between data gathering, reasonableness of your metrics, and purpose of your metrics is critical.

The good part is, Intacct saw this need and is equipped to monitor both financial and nonfinancial data. Intacct enables you to gather data, design your very own dashboard, and see your numbers in real time.


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About the author

Tanisha Howard-James

Driven by her passionate desire to provide customized management strategies, Tanisha Howard-James founded The Emanon Group in 2006.  Her focus is in offering tailored solutions particularly in the areas of client accounting services, time and workforce management, business advisory, accounting technology, payroll and tax administration.

After graduating from George Washington University, she continued her education by obtaining an MBA in Management and Marketing from Southeastern University. With experience, skills and expertise in QuickBooks, Intacct, employee benefits and strategic analysis, Tanisha is dedicated to providing the much needed financial and management consultative services to small to medium enterprises helping them achieve success in a large scale manner.

Over the years, Tanisha has expanded The Emanon Group to feature business consulting and accounting technology services. Through various opportunities, she has gained intimate knowledge of best practices and offers her extensive knowledge to fellow business owners. Although she provides expertise within most industries, she has a specialized niche in construction, real estate development, government contracting, franchises, and healthcare.

You can connect with Tanisha on Twitter and LinkedIn

3 Comments

  • Hi Tanisha,

    Thank you for diving into the Dashboards, Financial and Statistical Accounts, etc. and BI power of Intacct.

    These are just a few of the many reasons so many Non Profit sector clients and their executives are migrating to Intacct, with joy and ease. The example given of headcount is so important to funding, funding sources, grants, contracts, and the approval process, especially for those applying to other agencies and governmental bodies. The statistical possibilities are important.

    Happy to see this information and it’s integration has extended to Fluxx, Grants Management.
    If your non-profit clients have a need or are not familiar with Fluxx, Grants Management, check it out. Intacct made great presentations at Dreamforce, this year too. The platform will benefit.

    You are right in saying “Your virtual CFO services can be as simple or as complex as you want.”

    We would add the opportunities for creative Management Consulting services are endless too.

    Good article. Hope others will share their questions, comments, and experiences.

    Sincerely,

    Tamra

    Tamra Groff, Senior Consultant, GASC/GHFG

    • Tamra I couldn’t agree more. And yes the management consulting possibilities are tremendous and truly make this platform “fun” for us accounting professionals – well at least in my opinion as we are more involved with complete operation beyond finances to provide true meaningful insight. I hope others in NFP sector have a greater understanding to look further into this platform. Thanks for your support of my posts.

  • CFO services takes companies financial and accounting responsibilities. They are expert in accounting and finance and they have in depth knowledge. They make good strategy that help the company to grow more.

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