4 New Mandates for Finance in Tech Services Firms

Finance and Project Teams Can Drive Higher Growth and Customer Satisfaction

The Defining Moment for Tech Services

Information Technology and Services firms are facing a growing set of complex operational and strategic challenges. New fast-evolving business models and technologies—including the cloud, mobile devices, the Internet of Things and Artificial Intelligence to name a few—are creating a defining moment for technical services firms.

These technologies have the potential to upend the business models of tech services firms. In practice, that translates into pressures on:

To respond to these opportunities and threats, finance organizations must understand the new business mandate. They need to build their processes and deploy best-of-breed technology to create greater efficiencies, increase customer satisfaction, improve operating margins and spur company growth. Finance professionals must provide leadership as the firm strives to deliver high-value services at disruptive price points, decrease operating costs, launch innovative new services, and continue to increase revenue.

Ultimately, the finance team achieves success in tech services through a “best-in-class” approach that blends and unifies finance best practices and airtight project accounting in one system with shared data, reporting, and processes.

Tech Services Firms Strive to Achieve Value

In the tech services industry, value and business performance are achieved by optimizing execution in several ways. Firms strive to improve on the following key performance metrics:


The challenges for finance professionals in the tech services industry come from a variety of sources, both internal and external.

Four New Mandates for Finance in Tech Services Firms

The rapid innovations and widespread adoption of technology within tech services firms is creating a pivotal moment for financial leaders—the previous ways of managing finance and operations data will no longer suffice. Although the path forward is challenging, several key mandates have emerged that, when followed, can position finance teams in tech services firms to achieve and maintain better business performance.

ProKarma, a fast-growing IT services firm, made the move to Sage Intacct and significantly improved its efficiency by streamlining and automating key financial processes.

Previously, the company spent 20–24 hours per month on global financial consolidations. With Sage Intacct, that same process now takes between two to four hours. As the company has grown, Sage Intacct has also enabled ProKarma’s accounts payable team to process 40 percent more transactions—without adding headcount.

To reduce revenue leakage, ProKarma applies not only good financial and KPI reporting, but pinpoint exception reporting. Its finance team uses Sage Intacct to automatically generate weekly accounts receivable aging reports for specific managers based on invoices that are overdue by more than 60 days. ProKarma also uses Sage Intacct Project to optimize its staffing and maximize project profitability, which helps drive accelerated growth.

The Benefits of Best-in-Class Cloud Financial Management Solution for Tech Services

Tech services firms can achieve tremendous benefits by adopting a best-in-class finance and project accounting technology foundation. In most instances, they revolve around four key areas:

Taking It to the Cloud

Many tech services firms recognize that cloud-based financial management solutions can unlock a wide range of important business, technical, and economic benefits.

Cameo Global, a global managed services company, delivers more than 900 complex technology projects per month. Here are just a few of its outcomes after implementing Sage Intacct:

Conclusion

Forward-thinking tech services firms are striving to move beyond outdated finance paradigms— spreadsheets, manual processes, error-prone workarounds, and audit-unfriendly exceptions. Today, tech services firms need the ability to bring finance and operations together in a single, integrated system that enables seamless collaboration, real-time information sharing, and crisper execution. That means these firms need a cloud financial management solution that innately understands and supports project-based business models. An integrated solution that seamlessly unifies both project accounting and financial information in a single, modern financial foundation can deliver meaningful, measurable impact on the firm’s performance: strong revenue growth, reduced revenue leakage, higher win ratios, improved utilization and billing, and much more. In a tech services firm, these types of activities and metrics are inseparable.

By using an automated finance platform to get and keep the financial house in-order while tying in operational and project data, you drive down executional costs and keep the business focused on customers—not transactions, broken processes, and data headaches. A unified system that blends core financial capabilities with front office and project execution capabilities helps tech services firms create well-executed internal operations that enable finance to become a true partner in order to drive growth and improve the firm.

About Sage Intacct

Sage Intacct is the innovation and customer satisfaction leader in cloud Financial Management. With the powerful combination of Sage and Intacct, the Sage Business Cloud offers the best capabilities of both companies. Bringing cloud computing to finance and accounting, Sage Intacct’s innovative and award-winning applications are the preferred financial applications for AICPA business solutions. In use by organizations from startups to public companies, Sage Intacct is designed to improve company performance and make finance more productive. Hundreds of leading CPA firms and Value Added Resellers also offer Intacct to their clients.