Intacct Enables Aircraft Component Repair and Overhaul Services Company to Streamline Intercompany Transactions, Consolidations, and Financial Reporting
Intacct, a leading provider of cloud financial management and accounting software, today announced that Able Engineering has replaced its MYOB financial management system with Intacct. The move to Intacct has simplified multi-entity management, increased reporting and analysis capabilities, automated key financial processes, speeded the financial consolidation and close processes, and improved business visibility – reducing finance department time and expense and more than paying for itself in labor savings.
A leading aircraft component repair and overhaul services company, Able operates as four distinct business entities. With its previous financial applications, Able had to maintain separate databases for each entity and process manual intercompany journal entries every month to close the books. The company struggled with manual financial consolidation, limited reporting and analytics, no audit trail, and minimal security and financial controls. As the firm grew, more and more work had to be done outside of the financial system, using Excel coupled with manual and paper processes.
“We looked at all of the leading options on the market – both on-premises and cloud applications – including Epicor, Microsoft Dynamics NAV, Sage MAS 90/200, NetSuite, and Intacct,” said Gregg Leach, CFO, Able Engineering. “We were most impressed with Intacct due to the ease in which data could be entered, accessed, consolidated, reported on and analyzed. But what really won us over was Intacct’s depth of functionality matched with very low upfront costs and a high annual return on our investment.”
Once Able selected Intacct, the company worked with Sererra, one of Intacct’s Business Partners, to implement the system. Able went live on Intacct on April 1, 2011, and immediately saw significant financial and operating benefits from Intacct’s multi-entity management, financial consolidation, reporting, and analysis capabilities.
Previously, Able was forced to combine intercompany entries into a single month-end journal entry which only provided very basic, summary information for each entity. To analyze account balances in any detail required manual investigation through multiple documents and screens. Leach noted that many times this process simply couldn’t be completed, wasting a huge amount of time and making it impossible to truly understand what was driving the business. With Intacct, intercompany consolidations, transactions, eliminations, and allocations are automated and detailed history is instantly available for every business entity.
Intacct includes built in workflow and document management capabilities designed to allow distributed and multi-entity businesses to achieve paperless operations. With Intacct, Able now attaches digital copies of documents like invoices directly to transactions in the system, allowing for instant drill-down analysis from summary to detail to transaction to supporting document. Leach estimates that streamlining and automating the invoicing process alone has saved Able’s finance staff as much as 40 hours of work per month.
Financial reporting and analysis has also been easier and more meaningful with Intacct. Prior to Intacct, the financial system only produced balance sheets and income statements at the individual entity level; everything else was cobbled together using Excel or other systems. Now Able can tap into the more than 150 pre-built reports included with Intacct, and can produce additional customized reports for any of its operating entities and for the organization as a whole. This has significantly reduced the time it takes to get Able’s management team the information they need to make the best possible business decisions.
“Intacct allows us to analyze financial information from multiple dimensions, including month-to-month comparisons and budget versus actual, both of which were extremely difficult and time consuming with our previous system,” said Leach. “In addition to increased business visibility, we’ve also enjoyed important financial process improvements. Our month-end closing process is already 33% faster than with our previous system and our expectation is that it will be another 50% faster by the end of the year.”
“Able Engineering grew 23% last year and we expect to grow another 25% this year,” added Leach. “Because of the efficiencies we’ve gained with Intacct, we fully believe we will be able to handle that growth without having to add any additional finance or accounting staff. Our labor savings in finance alone more than covers all of our costs for Intacct. We no longer look at our financial system as a necessary evil; it is now a strategic advantage for our organization.”
To learn more about how Intacct helps medium-sized organizations, please visit http://us.intacct.com/your-business/your-company/medium-sized-companies.