If your tech company is outgrowing its accounting system or experiencing pain points while transitioning to a SaaS model, this podcast episode is for you! Join Technology Industry Practice Leader, Michael Valerio, and Strategic Alliances Director, John Bartz, as they discuss how Cherry Bekaert’s digital advisory team works with tech companies to provide services around strategy, implementation, optimization and support while utilizing Sage Intacct.
This episode offers insight into how Sage Intacct solutions can greatly improve a tech company’s reporting and financial management, particularly when it experiences multi-entity consolidation, international expansion, change from a legacy system and more.
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MICHAEL VALERIO: Hello everyone and welcome to the Cherry Bekaert technology podcast. My name is Michael Valerio, and I am the firm's Technology Industry Practice Leader.
MICHAEL VALERIO: I am pleased to be joined today by John Barrs, who is our Strategic Alliance Director for Sage Intacct. John and I are going to discuss how the Cherry Bekaert Digital Advisory team works with tech companies to provide services around strategy, implementation, optimization, support, and outsourced accounting utilizing Sage Intacct.
MICHAEL VALERIO: John, welcome.
JOHN BARRS: Thanks, Michael. Glad to be here.
MICHAEL VALERIO: Why don't you give us a little bit about your background? You joined the firm within the last year or so.
JOHN BARRS: I have been in the Sage Intacct ecosystem for almost 15 years. I was an executive at Sage North America, and then I was a reseller with my own business for about 10 years.
JOHN BARRS: As I mentioned, I have been around Sage Intacct for 15 years and have a lot of experience in the mid-market and the technology environment.
MICHAEL VALERIO: Great. I am sure you will be able to impart a lot of wisdom for our tech clients and those listening.
MICHAEL VALERIO: To kick things off, can you first explain Cherry Bekaert's relationship with Sage Intacct and talk about the team's experience within those capabilities?
JOHN BARRS: Cherry Bekaert has two specific partnerships. There is the outsourced accounting partnership that you mentioned, and we are a Value Added Reseller (VAR) where we sell, support, and implement the software.
JOHN BARRS: We have been in place for a couple of years and have already achieved several awards with Sage Intacct.
JOHN BARRS: I have been working very hard to leverage my historical relationships with Sage Intacct in the VAR space, as well as helping our CAS and Sage relationships, so that we are in good standing as a partner.
MICHAEL VALERIO: I know technology is a key vertical for both Sage and Cherry Bekaert, so it seems to be a good fit overall.
MICHAEL VALERIO: One of the things I normally see with young companies is that they are typically using a system like QuickBooks. There are always challenges determining when to move from one system to the next.
MICHAEL VALERIO: Can you talk about some of those pain points?
JOHN BARRS: To elaborate on your previous question, we are very good partners for Sage Intacct because the industries we serve align extremely well with the markets they focus on.
JOHN BARRS: The technology industry is a very successful vertical for Sage Intacct. Typically, we see people coming off of QuickBooks because they have outgrown it or want to change from a legacy system that is no longer supported.
JOHN BARRS: Many also want to move into a SaaS model, and Sage Intacct is a Software as a Service. There are many different drivers that lead them toward a Sage Intacct solution.
JOHN BARRS: For example, they may need a GAAP-compliant system for auditing. Sage Intacct is the only solution preferred by the AICPA, which is an important point to make.
JOHN BARRS: Sage Intacct regards itself as an accounting system built for accountants, by accountants. It is oriented specifically in that way.
JOHN BARRS: Other pain points include the overuse of Excel, which leads to errors and is very time-consuming. You often do not have integrations, but Sage Intacct has a very strong API to connect to almost anything.
MICHAEL VALERIO: In my experience, I see issues when there is an M&A transaction, a new investor, or a separate entity. This also occurs during international expansion where you have foreign currency exchange issues.
MICHAEL VALERIO: QuickBooks really doesn't have that capability right now. Have you seen that as a typical reason why it is time to move to a platform like Sage Intacct?
JOHN BARRS: That is a great point. Sage Intacct does extremely well in multi-entity scenarios. It has a great consolidations module that provides updated consolidation reporting with just a few clicks.
JOHN BARRS: You can create multiple books and have different consolidation reports. The multi-currency feature works extremely well and handles all translations for you.
JOHN BARRS: It is very easy to add an entity in Sage Intacct, taking less than 30 minutes to get up and running. This supports growth, which is a key factor when scaling beyond the capabilities of QuickBooks.
JOHN BARRS: Sage Intacct also makes things much easier for the auditors.
MICHAEL VALERIO: That makes sense. What are the specific solutions your team provides to support that growth, and how does that differentiate from someone just buying a software solution and getting it implemented?
JOHN BARRS: We want to have a "customer for life" partnership. We spend time understanding business needs and pain points through a discovery process before performing customized implementations.
JOHN BARRS: We want to build self-sufficient clients who are not overly dependent on us for day-to-day operations. This leads to referenceable clients and renewals, which is vital in a SaaS model.
JOHN BARRS: On the VAR side, we sell the software subscription, implement it, and provide ongoing support. Being part of Cherry Bekaert is a great benefit because we have advisory and accounting expertise.
JOHN BARRS: We can leverage these teams for program management, change management, and other specialized areas. It is much broader than just selling and implementing software.
JOHN BARRS: Sage puts a lot of value on firms like Cherry Bekaert that provide those comprehensive services.
MICHAEL VALERIO: Can you speak about the technology space specifically, such as health tech companies? They often have regulations related to HIPAA.
MICHAEL VALERIO: How does Sage Intacct support those requirements or other similar regulations?
JOHN BARRS: If you have personal information in your accounting system, a Business Associate Agreement (BAA) is required. Sage Intacct will sign that because of the advanced auditing capabilities that exist.
JOHN BARRS: That is a somewhat unique capability. For a healthcare company with numerous offices, the consolidation and reporting capabilities of Sage Intacct come into play.
JOHN BARRS: General use and multi-location management are essentially "table stakes" with Sage Intacct. It is very easy to set up and manage.
MICHAEL VALERIO: We talked about Excel being a pain point. Could you talk about the contracts module? ASC 606 has been a major focus for private companies over the last few years.
MICHAEL VALERIO: Could you elaborate on how that is helpful for tech companies?
JOHN BARRS: That has been a great module and a key attractor for tech firms, especially in the SaaS model. The contracts module manages all SaaS requirements.
JOHN BARRS: It handles ASC 606 reporting and all revenue recognition needs. It manages multi-element arrangements, such as bundling and discounting, and prices them accordingly.
JOHN BARRS: It also includes an expense management module to amortize expenses relative to a contract. This integrates with the project accounting module as well.
JOHN BARRS: You can even set up triggers so that when specific tasks are completed in the project accounting module, it triggers revenue schedules. It is a very sophisticated module.
JOHN BARRS: Only certain VARs are authorized to sell it. We have that expertise and experience, making us one of the key VARs that sell and implement the contracts module.
MICHAEL VALERIO: Thanks, John. I appreciate the insight you've provided. What are the next steps to get in touch with you, and what is your process for catching up with interested companies?
JOHN BARRS: We will provide my contact information, so please reach out. I would love to speak with clients, understand their business, and see if we can form a partnership.
JOHN BARRS: We perform due diligence and discovery at no fee. I am happy to see where the conversation goes.
MICHAEL VALERIO: I appreciate the opportunity to speak with you. That concludes this podcast.
MICHAEL VALERIO: Thanks for listening. We hope you take a few moments to check out our other episodes posted for the technology industry.
MICHAEL VALERIO: We are always happy to answer questions on any of the topics discussed. Thanks again for tuning in.
