2015
20 May

Valuing Start-Up Companies

Armanino’s Valuation and Forensic Services practice leaders are preparing for an upcoming webinar with AICPA. Jeff Stegner, Partner, and Dirk Van Dyke, Managing Partner, for the Valuation and Forensic Services team are excited to discuss valuing start-up companies from a Silicon Valley perspective.

The presentation will review the importance of a start-up company valuation, examine the common valuation method used for early stage companies, and establish best practices and considerations to avoid audit, IRS, and SEC concerns. With a combined 25 years of experience in valuing start-up and technology companies in Silicon Valley, Jeff and Dirk are well positioned to cover a range of valuations issues from the most basic to more complex issues for these types of companies. They will share details on valuing companies at varying stages of development as well as the methods used in valuation of such companies, including Discounted Future Cash-Flows, Market methods, and the Back-Solve approach. Additionally, the presentation covers allocating value to shareholders in complex capital structures that include “rounds” of preferred stock financing. Lastly, they will discuss the most common points noted by auditors when these valuations are reviewed in connection with the preparation of financial statements.

Register for the upcoming webinar to gain insights into valuing start-up companies and learn more about Armanino’s valuation team and services.

2015
19 May

Travel Expense Management: Send Your Key Players on the Road with Confidence

The manufacturing and distribution industry is highly competitive which can lead to slim profit margins. Before sending your sales team into the field, arm them with the technology to control travel spending, including two big-ticket items that can burn budgets and profits quickly. With a new focus on travel expense management, you can find ways to save and stretch tight profit margins.

Few businesses have extra money to spend without regard to budgets or profits, and those in the manufacturing and distribution industry must be very diligent about controlling spending. However, if your team relies on paper-based expense reporting, you may be putting spending at risk. Check out the eBook below, Integrating Travel into Your Expense Management, to learn just how quickly airfare, hotel, and other travel expenses can add up. As discussed in the eBook, managers are often the last to know when these expenditures take place – specifically when your traveling employee returns to the office and starts compiling receipts into a paper-based expense report. Get ahead of spending and protect thinning profit margins by deploying a better travel expense management solution.

Employees often book accommodations based on convenience and their choices may not adhere to corporate guidelines. TripLink is an app that allows travelers to make accommodations right from their smartphone or tablet, choosing from an array of options that you can determine. They can book with preferred vendors, such as hotel chains with which you have negotiated better rates, or choose alternative accommodations based on designated price targets. This flexibility offers the convenience desired by your travelers while also providing control over travel spending.

TripLink seamlessly connects with expense reporting systems to offer greater visibility into travel expenses. You can identify trends in spending and use that information to cut additional costs and prevent wasteful spending. For instance, you may identify other vendors willing to offer better rates for hotel, transportation, and other common travel expenses. With better rates, your team can adjust budgets or pricing for the products or services you provide.

Send your key employees on the road with the confidence that travel-related expenses are under control. Explore technology integrations at the Armanino marketplace to discover more ways to keep your business running smoothly, and remember to view Integrating Travel into Your Expense Management to learn how to control budgets and protect profits with TripLink.

2015
7 May

Adaptive Live 2015 Recap

Adaptive Live 2015 was a great event and our team loved meeting with so many colleagues, clients, and fellow Adaptive Insights users. The slides from the various sessions are now available from Adaptive Insights’ Product Support and Forums page. The Adaptive team also shared some great photos from the event including a few shots of the Armanino team!

ChJohn Dunican (Partner for Armanino's Adaptive Insights Practice) at Adaptive Live 2015eck out this shot of John Dunican, practice leader for Armanino’s Adaptive Insights team chatting with colleagues in front of the Armanino booth.

In case you’re wondering, that part of the booth included a quote from Enrico Hernandez, CFO at Lincoln Child Center, commenting “With Armanino and Adaptive at my side, I know we can save money to serve the kids. Then we will make a profit for the future.” We were thrilled to see Enrico and his team represented at the conference.

We had a great week meeting new people, reconnecting with clients, and learning from all the Adaptive sessions. The team can’t wait for even more great content and networking at next year’s Adaptive Live conference.

Remember to check out Amy Morgan’s follow-up blog on CFO Evolution – The Poor Man’s Scorecard and the Armanino presentation from Adaptive Live, Your Guide to Driving the CFO Evolution.

Learn more about corporate performance management and Adaptive Insights for your team.

2015
30 April

CFO Evolution – The Poor Man’s Scorecard

It was wonderful to attend Adaptive Live this year! During my presentation, Your Guide to Driving
the CFO Evolution
, with John Dunican, Partner for Armanino’s Adaptive Insights practice, we
shared a scorecard technique we use in Adaptive Insights when a client hasn’t purchased the
Discovery module. We call the technique “The Poor Man’s Scorecard.”  Our clients find this a useful
tool for introducing their C-suite and operational teams to a consolidated data view in Adaptive, so
this often works as a bridge or proof of concept before clients invest in the Discovery module.

Poor Man's Scorecard - Amy Morgan, Armanino

To build a scorecard:

  1. Create a shared report – use conditional formatting or graphical reports for readability.
  2. Create a new Announcement page (Admin/Manage Announcement Pages/New Announcement Page – drag over report).
  3. Make the Announcement page visible to the appropriate levels and save.
  4. Move the new Announcement page to the top of the page order (Admin/Manage Announcement Pages – click ^ move arrow).
  5. Update user’s Home Page to Announcement Page (Admin/Edit Users/Edit – select drop-down box after Home Page).

To learn more about how you can enhance your model, contact our team at AdaptiveInsights@armaninollp.com. I also feature tips and tricks at @AdaptiveAmy on Twitter.

Learn more about how the CFO Evolution® and Adaptive Insights can benefit your team

Happy modeling!

2015
23 April

7 Key Considerations for Growing Global SaaS Organizations

As you scale and build your SaaS Company there are 7 key areas to optimize in order to ensure stable and long-term growth. It’s important to lay out the foundation, game plan and strategy for these key areas prior to gaining momentum with your growth as an expanding global organization.

This article will cover seven key considerations as you structure your optimal strategic plan for growth and expansion as a Global SaaS company.

  1. “Best of Breed” Global & Expandable Cloud Accounting System – One of the most important considerations for a growing, global SaaS company is to have a “best of breed” cloud accounting system as a foundation to run your business. The benefits of a cloud accounting system include flexibility, ease of use, scalability and a lower total cost of ownership as compared to on premise software. Also, as you grow, you will inherently break out of US boundaries and into global markets to expand market share. It will be extremely important to have a core accounting system that will be able to handle this expansion from a global presence of legal business entities as well as multi-currency requirements and global consolidations of your financials for these separate global entities. Therefore, a key consideration here is to have an accounting system that has a multi-dimensional structure to build the optimal shared chart of accounts and target elements of the business to track and report against these dimensions from a global entity basis.
  2. Real-time KPI SaaS Metric Reporting – Another critical consideration is real-time SaaS KPI metrics reporting to give you complete visibility into your business. It is important to structure the business with target elements, such as customers, items, and locations, in order to easily report your target KPI’s metrics such MRR, ARR, CAC, LTCV and Churn to make the right decisions at the right time in driving the strategic goals of your business.
  3. Collaborative Forecast & Budget Planning – Forecasting and budget planning are essential considerations for a growing SaaS company. This is where you will need to be collaborative, remove the “death by spreadsheet” scenarios, and become very nimble with actionable visibility on key forecasting and budget planning data at the click of a mouse. A cloud-based, flexible, intuitive, easy-to-use solution allows a company to achieve this easily.
  4. Stock & Equity Management – As you build value as a company, raise capital funding and incentivize your workforce you will be managing an ever increasing stock cap table and schedule. Automating these processes with best-of-breed cloud solutions and even outsourcing some of the more tedious processes to a trusted partner enables your team to concentrate on more strategic decisions for your growing company.
  5. Corporate & Sales Tax Optimization – As you transact and grow globally, the need to handle and optimize tax considerations will continue to increase as well. It will be important to consider how you approach and transact in both the US and abroad as in VAT to minimize tax impacts and prepare in advance of any potential unknowns. Utilizing cloud-based applications that can easily link and leverage your cloud infrastructure enables you to automate and optimize your sales tax transactions, and also, prepare for any future tax audits.
  6. Audit & Compliance – Another key consideration as you grow your global SaaS business will be the audit and compliance area. This can range from the governance, risk and compliance around your core financial systems to how you transact with partners, customers and vendors. Planning with this in mind minimizes future audit aches and pains.
  7. IPO Readiness – One of the benefits of growing a SaaS company is the eventual liquidity event of going public or being acquired. This is another key area to consider as you move closer to the right spot for your company to be at in terms of valuation and when and if to go public or to sell your company.

As you prepare for global growth and a possible IPO or equity event, it is very important to consider these seven key areas and the possibility of including a strategic partner to guide you through these strategies to optimize your approach and execution.

Discover more strategies for growing global SaaS organizations.

2015
7 April

Incorporating Seamless Cloud Integration with Dynamics GP

The phrase integrated with Dynamics GP instills expectations of a smooth, automated experience. Unfortunately, we all know not all cloud integration is created equally.

Getting information into Dynamics GP happens in four main ways: enter it manually, import a flat file, invest in programmers for eConnect/BizTalk, or a truly automated web services integration.

Manual integration speaks for itself. Your team is manually keying data into Dynamics GP. Manual integration includes tremendous potential for human error, numerous man-hours and lots of paperwork. In the past, this was the only way to transfer information between GP and other systems. Thankfully, technology has improved since then!

Flat file integration allows you to upload a specifically-formatted file into Dynamics GP, which enables your team to spend fewer hours entering data, decreases human error, and improves the accuracy of the information transfer. Most GP integrated applications use this flat file method for transferring data. However, it’s still necessary to manually configure the source system to send information to GP intelligently (and sometimes not so intelligently when configuration errors occur).

Transferring information is a bit better using flat files without all the manual data entry, but the it’s still not ideal. eConnect/BizTalk from Microsoft is often used to integrate internal systems with GP, but a multitude of IT and programming resources are necessary to take that route.

The best solution is a true cloud-based web service integration!

2015
3 April

Hybrid Application Architecture and Integrations On the Rise

As more and more organizations make the transition to the Cloud, they are realizing the rise of a hybrid application architecture. A hybrid application architecture boasts a mix of application types with some key business applications residing in the cloud (public or private) and other applications remaining on-premise.

To effectively scale and enhance efficiency with such a hybrid architecture, all of your applications must communicate with each other, whether they are in the cloud or on-premise. If your on-premise ERP system isn’t integrated to your CRM Tool in the Cloud, which in turn, doesn’t communicate with your budgeting forecasting application, your team is forced to waste time working through error-prone manual processes to keep your data accurate.

Discover why integrating key applications is essential for strategic business leaders.

Learn about solutions the fit your business needs in the Armanino Solutions Marketplace.

2015
31 March

Future of Cloud Solutions and Integrations for CFOs

Armanino recently hosted a cloud solutions networking event, bringing together finance leaders in the  Silicon Valley to discuss the state of the cloud as they see it today and in the future. Held in the CalCPA offices in the Bay Area, speakers during the event included Armanino’s own, Matt Armanino and Dave Burlington.

Gain an insider’s perspective as Matt discusses CFO Advisory,  working alongside CFOs to drive best practices, and utilizing technology as a change-enabler for improving business process.

And hear about the future of cloud solutions and integrations as Dave and his team continually seek methods to implement better, faster, more durable, and better supported integrations.

Discover more on the state of the cloud and learn how to utilize cloud technologies to improve your business processes.