ASC 606 is causing finance pros in software-as-a-service (SaaS) companies a lot of late nights. Revenue forecasting is a complex process, and the revenue recognition criteria only add to the workload—especially if you rely on spreadsheets. Consistency across the quote-to-cash process can simplify forecasting for FP&A practitioners. That’s because consistency can help ensure greater pricing discipline across your sales organization, making it easier to model the implications of the new rev rec rules for stakeholders.
They say that desperate times call for desperate measures. Now that we’re in the midst of 2018, many companies materially affected by the new revenue recognition criteria are scrambling toward compliance. Experts at PwC note that while many organizations have chosen automated approaches, others may find their only option is a “largely manual ‘brute force’” method.
“A budget’s assumptions are often outdated the moment they are finalized.”
This lament is heard often from FP&A professionals in organizations that still rely on the annual budgeting process. Reliant on spreadsheets and disjointed sources of data, the break-neck pace of change in the business environment often renders the annual budget’s assumptions outdated as soon as their recorded. Decisions are made all year on those out-of-date assumptions, which can make response and reaction to changing market nearly impossible.
“The fundamental problem I have with budgets is that they are all based on assumptions that turn out to be wrong,” noted Steve Player, North America program director for the Beyond Budgeting Round Table, via CFO Magazine. “Sometimes the economy comes in stronger, sometimes it comes in weaker. The budget locks everyone into an annual cycle. We need to be moving faster than that, to be more agile.”
The word on the street is that CFOs are eager for a spreadsheet alternative with automation—and for good reason. “Excel just wasn’t designed to do some of the heavy lifting that companies need to do in finance,” said Paul Hammerman, a business applications analyst at Forrester Research Inc., in a recent Wall Street Journal article.
Now Available For Sage 100cloud
A recent product update introduced the newest application now available for Sage 100cloud – Sage Budgeting and Planning. Let’s take a look at this powerful tool that enables quicker, more informed business decisions by automating and shortening your budgeting and planning cycles.
Technology is changing the role of the CFO in unprecedented ways. Externally, it’s transforming how your company does business through new competition, new market opportunities, and new ways to deliver value to customers. Budgeting software also delivers an opportunity to transform how you work inside the organization. Tech-savvy CFOs are looking to modernize their company’s systems and IT infrastructure to help the business boost productivity, gain a competitive edge, and stay flexible for the future.
Adaptive Insights recently released the first update for 2018. The features in the Adaptive Suite 2018.1 release enable teams to work faster and smarter with enhanced visual analytics, expanded consolidation features and integration capabilities that enrich the Adaptive Suite data. In this article, we’ll explore some of the new features.
Evaluating Advanced Planning and Scheduling Systems
Recently I was working with a supply chain client where the company was seeking to implement manufacturing systems that included an advanced planning and scheduling system (APS). I asked them: “What are your chief business goals in seeking to implement and use [specific ERP]’s Advanced Manufacturing capabilities in your business?”
Two of the crucial factors they mentioned in their response were to “gain insight into [their] business in regard to capacity… [and] ship dates.” The mentioned, specifically, challenges they were currently facing in “capacity planning” and the “scheduling of work orders.”
In light of this request and their business goals, I proceeded to ask them some important questions, such as:
How long do you take to make up your mind about something? It often depends on what you are doing or buying. A 2015 survey of 2,000 people in the U.K. conducted by the Skipton Building Society found that the typical time for deciding on a restaurant drink order was only about 1 minute and 53 seconds. However, the same respondents took an average of more than 10 days to pick out a birthday or Christmas gift for their significant others.
Professional services organizations struggle to make timely decisions
When it comes to making decisions for your professional services firm, you do not want to move so quickly that you overlook something. But you also do not want to waste time on drawn-out manual processes (e.g., reconciling a bunch of Excel sheets) that make timely decision-making virtually impossible.