DIGITAL CPA WEBCAST SERIES:

HOW THE CLOUD IMPACTS MODERN DAY FINANCIALSSeptember 30, 2016

CPA.com, an AICPA company• Empowering CPAs and Businesses for the Digital Age

Erik Asgeirsson, President and CEO, CPA.com• Industry leader with over 20 years of experience leading technology

organizations• Over the past ten years has led CPA.com's focus on cloud

computing and the transforming opportunities available to accounting firms

• Consistently recognized as one of Accounting Today’s “Top 100 Most Influential People”

• Viewed as a leading change agent for driving technology adoption in the accounting profession.

• BS Electrical Engineering, George Washington University, and MBA in Finance, NYU Stern School of Business

Marc LindenCFO, Intacct

• As CFO oversees Intacct’s financial and administrative organizations

• 20 years experience in finance, business strategy and general management

• Began his career in the technology practice at McKinsey & Company

• Held positions in corporate development and planning• Degree in economics from University of California at

Berkeley, MBA from Harvard Business School

Guest Panelists

Marcus Wagner, CPACEO, AcctTwo Shared Services• Founder and CEO of Intacct's Partner of the Year for 2014,

2015, and 2016• AcctTwo focuses on customer satisfaction in ERP

implementations, Business-Process-as-a-Service outsourced accounting, and developing and extending the Intacct platform.

• 20 + years of experience working with small, medium, and large companies in the areas of financial accounting and auditing, process and internal controls consulting, and management advisory services

• Began career at PricewaterhouseCoopers, where he spent time in the financial audit and risk advisory practices

• Co-founding partner of Calvetti, Ferguson & Wagner, an accounting firm in Houston, TX

• Holds a B.A. from Rice University and is a Certified Public Accountant (C.P.A. - Texas

Guest Panelists

Agenda Strategies for future relevance

What’s the big picture?

In practice

STRATEGIES FOR FUTURE RELEVANCE

Strategy for Firm Value Proposition

Valu

e

AutomationToday Tomorrow

Trus

ted

Advi

sor Tr

uste

d Ad

viso

r Gr

owth

SpecializationBusiness Insights

Commoditization of low end

Higher Margin

Low margin/fee pressuresAutomation Of Services

TransactionalDecline

Transactional Bookkeeping

Expanding The Value Offering With Technology And Talent

Value Offering

Transactional, Compliance

Automated Processes and Workflows

Business Insights and Strategic Advisory

Human Capital ManagementCloud

Based Accounting

Services

Sales and Use Tax

Budgeting & Forecasting

Tax & Financial Planning

CFO Services

Strategic Planning

BillManagement

Expense Management

Cash Flow Management

Financial Dashboards

Account Reconciliations

Payroll Write-upFinancial

PreparationIncome Tax Compliance

Payroll Tax Compliance

Trusted Advisors Role ‣ Transcend the routine

‣ Develop specialized knowledge

‣ Stay ahead of automation wave

‣ Be valued for expertise and insight

‣ Translate data into wisdom

Source: “The Big Switch & Beyond” – Nicholas Carr, author

THE BIG PICTUREMarc LindenCFO, Intacct

TECHNOLOGY WILL DRIVE CLIENT EXPECTATIONS

Fundamentals of a Cloud Strategy

Targeted at the CFO

Enterprise Features

Cloud(pure multi-tenant SaaS)

+Best-in-Class Integration

Company’sChoice

Finance

Payroll

SalesProfessionalServices

Manufacturing

+

Large Portion of the Market Served

Small and Medium-Sized

Businesses

Very Small <20 Employees

Enterprise and Large

1,000+Employees

20 – 1,000 Employees$10 – 500M Revenue

Intacct Accountant Program

Features & Capabilities

Increasing Pace of Innovative

Unlimited Dimensions

Unlimited Self-Balancing Dimensions

Custom Transaction Types

Multi-Entity Accounting

Multi-Entity Consolidation for Minority Interest, Different COAs

Multi-Entity Centralized AP & AR

Statistical Accounting Multi-

Dimensional Financial Reporting

GAAP & Tax Adjustment Books

Multi-book Accounting for Cash & Accrual

Salesforce Integration

8 Standard Dimensions

Multi-Book, Multi-Base Currency Consolidation

Global GL, Sub-Ledger Analysis & Aging

Exclusive Endorsement

20032004

20052009

20122013

Dimension Validation

Salesforce Chatter IntegrationUser-Defined Books

20142015

Intacct Subscription Billing

Digital Board Book

INDUSTRY 1sts AND Only

Best-in-Class Functionality for Any Organization

On a SINGLE platform

General ledgerAccounts payablePurchasingOrder managementAccounts receivableCash managementReporting & dashboardsDigital board bookCollaborate

CORE FINANCIALS

Multi-entity managementGlobal consolidationProject accountingT&E managementRevenue managementSubscription billingSales and use taxCheck delivery serviceInventory management

ADDITIONAL MODULES

System integrationEasy configurationPlatform functionalitySalesforce integration

EXTENDING FINANCIALS

AccountingFranchiseHealthcareHospitalityNonprofitServicesSoftware & SaaSWholesale

INDUSTRY-SPECIFIC SOLUTIONS

Broad Value Proposition for Financial Managers

Track true financials and operations Visibility for planning / strategy Flexibility as needs change

Drive Performanceand Growth

Managing for Long-Term

Process automation Oversight and controls Accuracy and compliance

Make My BusinessMore Efficient

Better Every Day

With Intacct, You Can Do Both

Intacct Non-Profit Spend Management = Control Automation

Automatic budget policy management for purchasing & fund manangement

Flexible configuration

Prevent spending or warn and continue

Avoid unexpected grant administration issues

Have peace of mind that spending policies are enforced

Intacct Digital Board Book for Non-Profit = Visibility

Through an Organizations Life-Cycle

START-UP/ OWNER

OPERATOR

FORTUNE 5,000

Changing needs of growing

companies True integrated accounting system

Acquisitions/partnerships

Multi-company consolidations

International/multi-currency

Publiccompany

SO WHAT?

20

Who wins

Bookkeepers?

Accountants?

Business Advisors!

IMPLICATIONS

23Getting to Metrics that MatterBenchmarkingo External benchmarks: industry, competitors and public companieso Internal benchmarks: budgets and plans or prior periods

Industry Metricso Metrics are industry specific, for example:

• Revenue and Cost per Cow analyzed by: gender, breed, age and herd

• Number of cowboys by same and Rev/Cost per cowboy

• Customer Lifetime Value (CLTV), Customer Acquisition Cost (CAC), Churn

• Committed Monthly Recurring Revenue (CMRR)

• Cashflow

Cattle Ranch Software Company

24Where Do You Source Metrics From For Best Practice Benchmarking

Management Reportso Your clients management reports include the key metrics that are important for a specific industry or

segment

Trade Associationso Industry trade associations often collect and publish information on key metrics including best practice

targets

Internal Expertiseo Building out internal expertise and retaining it will provide the institutional knowledge for metrics reporting

25How Do You Present The Results Financial Reporting Packageo As part of the monthly/quarterly reporting

package to management

Real-Time Dashboardso Self-service dashboards that provide at a glance

metrics into the business

Added Serviceso As part of a client engagement to create

best practice benchmarking

26

Benefits of Outsourced Services Beyond Cost Savings

Financial clarity resulting from timely, accurate, and relevant financial reportingo Identify opportunitieso Spot negative trends earlyo External reporting (lenders, investors, partners, franchisor)

Increased revenue & reduced time to cash

27Cutting to the Chase—the Cocktail Napkin ROI

Save 8hrs of CFO’s

time/week and 1 FTE and

pay for Outsourcing

in <1yr

Reduce revenue leakage

by .5% for a $10M co and

pay for Outsourcing in

<1yr

OR

Seeing the Whole Picture

BEST-IN-CLASS CLOUD FINANCIALS

Real-timereporting from

system of record

Dashboardsfor key

stakeholders

Rock-solidfinancial core

connecting with yoursystems of choice

REPORTING VISIBILITY INTEGRATION and AUTOMATION

CLOUD IMPACTING STANDARDS

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Cloud’s Impact on Standards – SSARS21Technologyo “How do you comply with

footer standards if accounting software doesn’t provide capabilities?”

o “If we print the financial report does that count as preparation?”

o As of Aug. 21st Intacct increased footer capacity to 400 characters

Business Strategyo “Does this preclude the firm

from offering attestation services for this client in the future?”> AICPA Blog “

3 Steps to Maintain Independence When Preparing Financial Statements”

o “Do I need to go through peer review?”

Leadershipo Educate business

community and clientso PCPS SSARS21 Toolkit

> FAQ

IN PRACTICEMarcus Wagner, CPAAcctTwo

Top 100 Top 500

Small Firms*

(*CPA firms and outsourced F&A firms)

BPO/ADVISORY SERVICES GROWTH – FIRMS OF ALL SIZES LEADING THE WAY

33

BPO Firm’s Role as Trusted Advisor and Technology Curator

Evaluating new technologies

Bringing the right combination of solutions to the customer

Constant innovation and improvement

34

Firm Make-Up and SkillsetsBecause advising clients about

technology is important, firms need to hire tech-savvy people.

But they need those with accounting backgrounds as well.

When the two teams collaborate, amazing things happen.

35Shifting Your Perspective

AcctTwo started as traditional BPO focusing on transaction processing - but we’ve added more CFO services and strategic guidance.

Starting where we did forced us to be very process and technology-oriented, which is now a differentiator.

From being in the weeds to a bird’s eye view…

36

Removing Friction

Traditional Fractional CFOs - Not tied to a technology Time spent gathering data in Excel

Providing technology AND CFO services, means the data foundation is already in place. You can focus on analysis and strategy.

Does a customer’s CFO understand your value proposition?

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Resources“Harness the Power of the Cloud”o White paper o www.cpa.com/whitepapers/accounting-

services-harness-power-cloud

Follow us on Twittero @CPAcomo #DigitalCPAo @wagnermarcuso @Intacct_Marco @erikasgeirsson

BlogsCPA.com Blogo CPA.com/blog AcctTwo Blogo www.accttwo.com/blog Intacct Blogo us.intacct.com/blog

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Thank you!#DigitalCPA