Last week Marcus Wagner, AcctTwo's Founder & CEO, presented a webinar with Bill.com on how to bolster business resilience with a proactive plan. COVID-19 has brought upon unprecedented challenges and changes for businesses of all sizes. It’s critical to begin the shift into the learning and adaptation phases as quickly as possible to be able to emerge stronger from the pandemic.
At AcctTwo, we are no different. We have had to adjust and pivot, like many of you. On the Bill.com webinar, Marcus talked about what we've learned this year and how AcctTwo plans to move forward.
COVID-19 Takeaways for Building Resilience
- Risk management is even more important than ever. For years, the economy has been good and businesses have relied on it. Developing risk management programs is essential - you need to create short-term recovery plans, long-term continuity plans, and develop cash reserves/bank credit.
- Businesses that were early adopters of the cloud and digital transformation have come out ahead. They were more prepared for the remote workforce that was shifted upon most of us. At AcctTwo, we had remote workforce in addition to our Texas-based offices, so our systems and controls were already up-and-running. According to Forbes, "Firms should rush to take advantage of the cloud — firms that do not embrace it risk giving more nimble competitors that can innovate rapidly a chance to win market share."
- Continual reforecasting and "what-if" scenarios have become commonplace in the pandemic. Businesses that used to reforecast 4 to 5 times a year, now reforecasted 10 to 20 times over the past few months. Those organizations that have reforecasted continuously, are going to be the most prepared for whatever comes next.
- Re-examine your business model and supply chains. Organizations that have flexibility in their supply chains and the ability to pivot their workforce will be able to weather the storm better than businesses that haven't adapted.
- Create recurring revenue wherever you can. You don't have to be a SaaS company to implement a recurring revenue model.
Geoffrey Moore wrote the book, Crossing the Chasm. In it he said that new technologies are adopted by the innovators and early adopters and those are the people that are willing to adopt a technology that might be in the early phases and not fully baked. They like to take risks with innovation and new technologies. As the technology is commercialized and further along, you cross the chasm into the early majority/the bulk of the market. The late majority and the laggards follow after all the bugs and the system are perfected. For a long time, the best risk management strategy was to be a late majority or laggard. As it turns out, the COVID pandemic has proven that strategy ineffective. Digital transformation has gone from optional to urgent - accounting and finance are included. They are critical to how a business operates.
Keys to Digital Transformation
- Move all enterprise applications to the cloud. For example, did your accounting team need to go into the office to do the business finances because you weren't on a cloud-based finance platform?
- Implement virtual collaboration technologies like GoToMeeting, Zoom, Slack, Teams. No matter how far away your team is from one another, they can collaborate in the same ways that they used to in the office.
- Assess your employees' at-home work environment. Do they have the tools that they need to do their daily tasks and perform their job?
- Address the last-mile of digital transformation. A business might have cloud-based platforms but still have pockets of their business that isn't as adaptable. We should all be able to send and receive payments electronically. There are many companies that are on cloud-based platforms but still processing paper in their offices. Tools like Bill.com, Nexonia, and Concur are very helpful in this transition.
Proactive Planning is Critical to Your SuccessAt AcctTwo, we've developed a finance and accounting playbook that helps us proactively plan by visualizing, monitoring, and adjusting as needed. Proactive planning includes:
- Implementing a driver-based financial planning software with "what-if" scenario modeling capability
- Implementing a planning software with an accounting system to actively monitor actuals v. plan
- Reacting and adapting to changes in real-time
- Reforecasting frequently
Proactive planning is a key element to your success in today's new business environment.
Marcus goes into greater detail on the Bill.com webinar about recurring revenue models and AcctTwo's 120 Day Plan. Watch the entire webinar, or download our eBook, which contains more information on Marcus' key points.
Looking for even more information?
Watch our on-demand webinar series: Extend Your Runway. Marcus and his team have firsthand experience implementing the processes, controls, and technology needed to optimize financial resources, no matter the amount. Marcus and special guests, explore the topics of:
- Playbook Overview & Active Planning
- Sound Transaction Management
- Responsible Cash Management
- Timely Reporting and Analytics
- Funding and Exit Readiness
About Marcus Wagner
Marcus Wagner is AcctTwo’s Founder & CEO. He has more than 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 service. His career began at PwC and blossomed into his becoming a co-founding partner of Calvetti, Ferguson & Wagner, an accounting firm in Houston, TX. In 2010,
Marcus founded AcctTwo and has since grown the company from 3 employees to more than 90. Today, AcctTwo is the top provider of Sage Intacct’s cloud-based financial management software, Sage Intacct platform development, and Managed Accounting Services.
Bill.com is a leading provider of cloud-based software that simplifies, digitizes, and automates complex, back-office financial operations for small and midsize businesses. Customers use the Bill.com platform to manage end-to-end financial workflows and to process payments. The Bill.com AI-enabled, financial software platform creates connections between businesses and their suppliers and clients. It helps manage cash inflows and outflows. The company partners with several of the largest U.S. financial institutions, including the majority of the top 100 U.S. accounting firms, and popular accounting software providers. Bill.com has offices in Palo Alto, California and Houston, Texas.