what does api, soc and best of breed have to do with workflow?
DESCRIPTION
What does API, SOC and Best of Breed have to do with Workfow? The evolution of technology in accounting firms drives implementation. A new method of building out efficient workflow has emerged in the last few years with the sophistication of cloud based solutions and the number of specialized programs that exist. This class will explain what “open API” means, how this provides firms the opportunity to develop a system that genuinely serves the needs of your firm and clients and maintains the security of your data in the Cloud.TRANSCRIPT
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What does API, SOC and Best of Breed have to do
with Workflow?
Thomas R. Gawne, CPA
Director of Professional Services
Thomas R. Gawne, CPA Director of Professional Services, CPA2Biz
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Thomas Gawne, CPA Director of Professional Services
27 years in the tax and accounting
technology sector
Speaker, Facilitator, Consultant
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ProfessionalServices
PracticeWorkflow
CPA.comServices
AICPA Store
LMS
Mobile Apps
Audit Confirmations
Payroll
GeneralLedger
Bill Pay
CPA.com Firm Solutions Portfolio
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Evolution of Technology
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Agenda
Cloud Opportunities
Best of Breed in the Cloud
Security Assurance
Cloud Workflow Concepts
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BeforeTransactional
TodayAdvisory
Changing Landscape
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It’s getting more complicated...
Transactional
Using technology to support transaction processing
Workflow
Build digital workflow and standardization in processing
Digital CPA
The operating model of the TRUSTED BUSINESS ADVISOR
It’s not just about technology!
What is your strategy?
“Digital Trusted Business Advisor”
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Snapshot of key financial and operational data is the first step
RevenueAnalysis
Key MetricsProject Stats
Utilization
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Moore indicates that we have crossed to early majority…
Inno
vato
rsEar
ly A
dopt
ers
(Visi
onar
ies)
Early
Maj
ority
(Pra
gmat
ists)
Late
Maj
ority
(Con
serv
ative
s)
Lagg
ards
CHASM
Helping Firms With Adoption Curve
Firm Solutions
CPA Profession
Source: Dr. Geoffrey Moore, Crossing the Chasm
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Usage – Estimates by Cisco Systems
Source: “Cisco projects data center-cloud traffic to triple by 2017” - Steven J. Vaughan, posted ZDNet
• North America generated the most cloud traffic.2012
• The first year when the majority of workloads shift to the cloud, 51% will be processed in the cloud versus 49% in the traditional IT space.
2014
• North America will generate the most cloud traffic.2017
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Hype Cycle for Emerging Technologies - 2013
Source: Gartner’s 2013 Emerging Technology Hype Cycle
Cloud Computing
Technology Trigger
TIME
VIS
IBIL
ITY
Peak of Inflated Expectations
Slope of Enlightenment
Trough of Disillusionment
Plateau of Productivity
Big Data
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An Explosive Trend
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Cloud Opportunities
Increased service levels available in the cloud Early adopter phase of cloud adoption Explosive trend of cloud computing usage
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Best of Breed in the Cloud
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Best of Breed vs. Suite
Best of Breed
Focus on what they do best
Increased speed to market innovation
Solutions designed in open API formats
Multi-platform support problematic
Suite Focus on one vendor
eco-system Innovation is tied to
building a better integrated eco-system
Closed loop systems Integrated approach
makes support easier
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Cloud Wave Is Best-in-Class Wave
Dependence on single provider for all processes
Single company R&D investment
All-in-One Suite
Vendor’sChoiceSales PayrollFinance
Maximizing performance and reducing risk 10x portfolio R&D investment 2-6x pace of innovation vs. competitors
Best-in-Class Integration
Company’sChoice
Finance
Payroll
SalesProfessionalServices
Manufacturing
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Open API
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Partnering for Success
EXPE
NSE
M
GM
TMAN
UFAC
TURI
NG
BUDGETING /
PLANNING
SUPPLY CHAIN
PROFESSIONALSVCS
PAYROLLBILLING
PAYMEN
TSBUSI
NESS
INTE
LLIG
ENCE
NONPROFI
TDOCUMENT
MANAGEMENT
FIXED
ASSETS
VAT / TAX
1099
MIDDLEWARE
CR
M
120+ partners 75% of our customers integrate with 2+ partners
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Tax & Accounting Executive Roundtable
This exclusive CEO-level event is unlike any other. Hosted by CPA2Biz and the AICPA, the event brings together America's top:
• thought leaders• financial minds• SaaS entrepreneurs• government regulators• leadership from top accounting firms• State CPA Societies• and respected journalists...
to address the accounting profession's "move to the cloud."
SOLD OUT
New York, NY - January 28-29, 2014
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Best of Breed Approach
Maximizing performance and reducing risk 10 times portfolio R & D investment 2 – 6x pace of innovation vs. competitors
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Security in the cloud
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Service Organization Control (SOC) Reporting
Source: AICPA
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SOC 1 Reporting
As with SAS 70 reports, both SOC 1 type I and type II reports can be issued:
• Type I – a type I is a report on policies and procedures placed in operation as of a specified point in time. SSAE 16 type I reports evaluate the design effectiveness of a service provider’s controls and then confirms that the controls have been placed in operation as of a specific date
• Type II – a type II is a report on policies and procedures placed in operation and tests of operating effectiveness for a period of time. SSAE 16 type II reports include the examination and confirmation steps involved in a type I examination plus include an evaluation of the operating effectiveness of the controls for a period of at least six consecutive calendar months.
• Most user organizations require their service provider to undergo the type II level examination for the greater level of assurance it provides
Source: AICPA
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SOC 2 Reporting
SOC 2 reports focus on controls at a service organization relevant to the following principles:
• Security: The system is protected against unauthorized access (both physical and logical);
• Availability: The system is available for operation and use as committed or agreed;
• Processing Integrity: System processing is complete, accurate, timely, and authorized;
• Confidentiality: Information designated as confidential is protected as committed or agreed;
• Privacy: Personal information is collected, used, retained, disclosed, and destroyed in conformity with the commitments in the entity’s privacy notice and with criteria set forth in generally accepted privacy principles issued by the AICPA and CICA
Source: AICPA
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Security Assurance
Transition from SAAS 70 reporting to SOC Importance of reviewing SOC reports Difference between SOC reports
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Cloud Workflow Concepts
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Designing Optimal Workflow
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Example: Previous Workflow
Current A/P Process – Vendor Invoices
Current A/P Process – Vendor Invoices
Current A/P Process – Patient Reimbursement
Current A/P Process – Patient Reimbursement
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Example: New Workflow
New A/P Process
Vendor Issues Invoices for
Goods/Services
Invoice Received at A/P
Processing Center
Invoice Scanned to Bill.com
Invoice entered into Bill.com
DisbursementIssued
Check clears and the bank or e-payment reference number noted in system
Invoice approved by the Site
Manager for Payment
Invoice approved by finance for
Payment
Recommended Vendor Invoice Processing
A/P Vendor
Client
Site Manager
Asst. Controller
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Historical Chart of Accounts - Overview
75 Account Code Combinations
Natural Account1500 Equipment
Account SegmentsLocation Department Project
001 New York 100 Corporate 001 002 San Francisco 200 Engineering 002 003 Dallas 300 Development 003 400 Marketing 004 500 Sales 005
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Modern GL ArchitectureSimplify Your Chart of Accounts
Historical COAIntacct’s COA Structure
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Dimensions – Improve Visibility Into Your Business
Facts / Transaction values
Scenario
Time
Account
Department
Location
Item
Customer
Vendor
Employee
Class
Project
Division
Easily rename / repurpose to meet your business needs
Job# Bldg-Unit
Capture and report on key transactional information
Facts /Trans value: $2,500
Scenario: Actual
Time: 01/15/2011
Accounts: Revenue, Gross Margin
Department: Operations
Division: Business Unit 1
Customer: Cardinal Property Mgmt
Employee: Kyle Reese
Class: Property
Project: PSU10Bldg-Unit Parkside-Unit10
Job#: PSU10: Job101
Example: Property Mgmt Company
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JE P
ost via
Web
Service
s
Immediately after the payroll processes, the user posts journal entry
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Procure-to-Pay: Before
Data entry/re-keying Lack of controls Manual tracking of vendor performance Errors/inaccuracies Fragmented, cumbersome reporting
Process Problems Purchasing variance Auditing issues Discounts not recognized No true vendor relationship Inventory out of stocks
Business Impact
STEP I:Purchasing manually creates P/O
Step V:Vendors get paid with no visibility between accounting and purchasing
STEP II:Receiving manually matches purchase order with packing slip
STEP III:Accounting matches vendor invoice to purchase order
Systems with limited functionality
Data silos Spreadsheets
Patchwork of: Step IV: Accounting obtains proper approvals for paying vendors
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Integrated, Automated Process
Procure-to-Pay - After
Step IPurchase requisition entered in Intacct purchasing. Workflow routes through approvals.
Step IIRequisition converts to purchase order through automated workflow
Step IIIPurchase orders electronically matched through receiving capturing any variances
Step IVPurchase orders electronically matched to vendor invoice capturing any variances
Step VWorkflow manages payment approvals before checks are issued and recorded
No more data re-entry/re-keying Integrated rules/controls Automated Purchasing workflow Requisition to AP Check efficiency gains Automated financial reporting PLUS operating data
Process Solution Visibility to authorized spend Audit-quality data Managed cash flow Vendor analysis and stats Inventory availability
Business Benefits
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Continuing the Digital Journey…
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Available Resources
Digital CPA Webcast Tuesday, June 3, 2014 2-3pm ET
Geoffrey Moore Whitepaper Case Studies on Firms Webinars
Client Onboarding Training Technology Awareness Webinars
Follow us on Twitter @CPAcom
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Staying Connected
@CPAcom @ThomasGawneCP
A @PetePotsosCPA @pwhitmo @kalilmerhib @DeneenatCPAcom
#DigitalCPA
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REMEMBER
“CLOUD ACCOUNTING”
Remember . . .
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WILL SOON BECOME
REMEMBER
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REMEMBER
“ACCOUNTING”
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Digital Driven World For Firms & Clients
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Thank you!