Category Archives: Revenue Recognition

by Michael Camp

At our latest Dynamics SL user group in Seattle, I sat down with Tisha Cornwall, VP of Finance of Solutions IQ and asked her how Dynamics SL and Synergy has empowered their company.

In short, Solutions IQ needed a new project accounting and financial management system that could integrate their four existing systems into one and give them around the clock real-time visibility into their projects. In this video, Tisha explains how Dynamics SL and Synergy made it happen and how valuable their seven-year partnership with us is.

ERP: The Key to Growth and Efficiency

Synergy Executive Series – Article 4

The objective of an enterprise resource planning (ERP) solution is to unify and standardize business processes. This can be in financial management, project accounting, reporting, revenue recognition, and other accounting, sales, service, and customer management activities. Centralizing information makes it easier to collect, access, and manage data across the enterprise. Moreover, it helps businesses reap critical value from ERP through expanded visibility into data that can be used to better inform their business decisions and operational proficiency. But many businesses don’t realize how ERP is the key to their own business growth and efficiency.

For companies that have not implemented an ERP system, the top two reasons given are the perception that (1) the effort to implement is a daunting task and (2) the cost of the software and services is prohibitive. But for organizations that have implemented a best-in-class system, they realize these perceptions are not warranted. They discover there are several reasons a new ERP system is well worth it:

  • Any effort expended and cost are usually repaid with measurable and significant efficiency improvements. For example, Dynamics SL can deliver payback in as little as six months, and with Intacct Cloud financials, some organizations achieve payback in less than six months!

  • Many ERP solutions are scalable, allowing for incremental, phased rollouts.

  • A Cloud-based or hosted deployment of ERP results in lower total cost of ownership (TCO) and reduces the effort and cost of upgrades. With a Cloud-based system, it can eliminate upgrade costs entirely as they are included in the subscription fee.

  • With ERP, best-in-class companies are reducing operational costs by 20% and administration expense by 18%.

ERP provides the fiscal and operational system of record upon which you run your business. It serves to standardize, streamline, automate, and add visibility and transparency to your processes. In short, it empowers you to easily manage and make sense of mountains of data. To learn more, download the entire article, ERP: The Key to Growth and Efficiency.

Top 10 Signs You’re Ready to Replace QuickBooks

Outgrowing QuickBooks? Why Thousands have Graduated to Intacct

From QuickBooks to Intacct

Because it’s endorsed by the AICPA and has proven professional-strength capabilities, thousands of companies have moved from small-to-mid-market accounting solutions to Intacct Cloud Financials. The case for graduating to Intacct is even more compelling for QuickBooks users. Consider these ten signs you’ve outgrown QuickBooks. Intacct solves each of these issues. In your routine, you:

  1. Spend hours outside QuickBooks manipulating spreadsheets.
  2. Manage inefficient manual processes that reduce productivity and introduce errors.
  3. Lack timely information on critical business dimensions and must rely on manual workarounds.
  4. Have limited visibility into consolidated and operational details.
  5. Must depend on spreadsheets for reporting.
  6. Need to become fully GAAP-compliant or just need more control and auditability.
  7. Lack seamless integration with mission-critical apps, such as Salesforce, which increases manual tasks.
  8. Have difficulty managing multi-entity and/or multi-currency issues.
  9. Lack real-time visibility into project costs, revenues, and project profitability.
  10. Have inefficient, manual revenue management processes and experience revenue leakage as result.

Inc Magazine named Intacct “Best for Replacing QuickBooks.” It’s widely recognized as the best accounting solution for QuickBooks graduates. Get resources on the hidden costs of QuickBooks and how Intacct makes you more productive and delivers between 200% and 400% ROI every year with a three to six month payback time. Resources for QuickBooks Graduates.

3 Ways to Save Time and Your Sanity Through a New System

Synergy Executive Series – Article 1

Whether you’re a professional services, project-driven, or software/SaaS company, improving organizational performance should always be on your radar. One way to do that is to employ an adaptable ERP system (financial management, project accounting, revenue management, etc.), either Cloud-based or on-premise per your unique situation, to automate processes, shorten time to close, and generate accurate reports for better decision making. This article in our Executive Series, shows you how this can be a reality not a pipe dream for your company.

1 – Automate Workflow and Processes – The root of poor, manual processes is a lack of integration in your system. This leads to spreadsheet hell–when a unwieldy number of spreadsheet versions, collaboration challenges, errors in formula models, and a lack of a centralized record of changes leads to long, punishing hours of work. It can also lead to you questioning your sanity. The outcome is less accurate information and long closing times. The answer is to automate through integration.

2 – Shorten Times to Close – Long times to close are caused by things like spreadsheet hell. With an integrated system with access to real-time, accurate data (one version of the truth), close times can be halfed or less. The right new software system delivers this.

3 – Develop Flexible Reporting – By switching from a transactional process to a dynamic system, mid-sized companies have been successful at reducing the time it takes to generate customized reports by at least 20 hours per month. This means, among other things, they can quickly identify why costs are high in a certain area and solve a problem before it impacts profitability. The result is confidence. Again, a new, integrated system makes this possible.

To read the whole story of how to save time and your sanity, download Turning Insight into Action: It’s a Matter of Time, and visit the Synergy Microsoft Dynamcis SL and Intacct pages.

Fixed Price Revenue Recognition in Dynamics SL – Part I

by Robin Rulffes

Project Percent Complete Revenue Recognition is a tough concept for most people, including accountants and auditors. The basic idea is project revenue is recognized as project costs are incurred. The standard calculation is:

Project Revenue = Actual Costs [divided by] Estimate at Completion (EAC) Costs [times] EAC Revenue

This works great if you have an EAC Project Budget. Dynamics SL has functionality to maintain the percentage of completion for a project. With the click of a button, the process will create your monthly Revenue Journal Entry! The features of the process are:

  • Recognize based on the project, the task, labor, expenses, both labor and expenses, amounts, or hours
  • Run it as many times as needed and the system will only create a Journal Entry when there is a change in the total revenue
  • Can recognize both Revenue Increases and Decreases
  • Allows overrides

Now, what happens if you don’t know or have the ability to create or update the EAC Costs? This is true for a lot of smaller companies that do not have the resources to determine or maintain EAC. If this is you, stay tuned for Part II of this post where I’ll give you four other options for fixed price projects when you don’t know EAC Costs.

Feel free to comment or email me your questions.