In just a few short years, business models have made a titanic shift from selling products to subscription services. And it’s not just software that’s available as a service (SaaS). Call it Anything/Everything-as-a-Service (XaaS), and while companies like Netflix, Spotify and Salesforce are prominent examples, the trend extends far beyond the tech industry. You can now subscribe to ramen or a Range Rover as easily as you can to movies and music.
Enterprises on this journey are blending together discrete products and services, and as part of the shift, they need financial and accounting software capable of making the shift with them. Here we look at five reasons Sage Intacct is the perfect fit for today’s subscription companies.
1) Ensuring Compliance
Subscription accounting has always been complicated, but ASC 606 and IFRS-15 took it to another level. Sage Intacct streamlines subscription accounting and automates complex compliance mandates. As you go-live with the software, you can make use of a utility that rebuilds historical activity into your subledger to allow for immediate retrospective reporting and insight. You can even set up compliance and audit checklists with steps tailored to your company’s unique contract review processes (think Sign, Confirm, Review, etc.). The list appears in every contract and users with the right permissions can check off items as they are completed, along with their comments.
2) Connecting the Enterprise
Subscription organizations aren’t unique in the benefits they receive by connecting the front and back offices—but the complexity of those interactions sets you apart. You’re not selling widgets, you’re selling contracts that can have multiple variables and numerous triggers. Sage Intacct comes with prebuilt integration to Salesforce, so you can connect sales to accounting—and everyone else for that matter. It’s a single subscription system of record from the quote all the way through to GL, revenue recognition, reporting and forecasting. Salesforce isn’t the only integration available – learn more about our Sage Intacct Integrations.
3) Forecasting in Real Time
As your organization moves from traditional transactional sales model to contract or subscription selling, it has to adapt to an entirely different revenue schedule. This makes accurate, real-time forecasting vital. By providing a singly subscription system of records, Sage Intacct streamlines and automates forecasts providing the best, most reliable and timely data you need to guide the decisions that make your business a success.
4) Unified Billing
Within your organization you may have a blend of pricing models, including usage, tiered, price per xx, minimum flat fees, units, overages, and more. You may bill for both products (SaaS), or services or both, and there may be maintenance and support fees as well. Very few software systems can handle this level of variation, but Sage Intacct can. It provides a comprehensive, flexible, unified billing platform that simplifies internal operations and speeds your billing processes.
5) Intelligent General Ledger
Traditional accounting solutions with a single ledger simply cannot handle sophisticated subscription companies, your reporting requirements are too complex. Sage Intacct is light years beyond these static systems with its Intelligent General Ledger. The term is much more than a buzzword. It means posting happens as you go, allowing you to soft close throughout the month. It means you have multiple ledgers and can close sub ledgers independently, leaving others open for processing. It means you can enter a transaction once yet represent it across multiple financials (GAAP, IFRS, etc.). It means you’re armed with actionable insights—business intelligence—to help you make rapid and proactive decisions.
Sage Intacct is an exceptional solution for subscription businesses—designed from the inside out to address the complexities of subscription accounting. But don’t just take our word for it: Sage Intacct was recently named a Leader in the new IDC MarketScape: Worldwide Subscription Management Applications 2019–2020 report. You can download an excerpt of the IDC MarketScape report with analysis on Sage Intacct. And when you’re ready to talk, contact one of our Sage Intacct experts.