Manufacturing accounting software that is hosted on a cloud platform provides a full range of broad benefits as well as several other advantages that are vital for any business in the industry, such as real-time visibility and virtually unlimited scalability. Manufacturers still relying on legacy ERP face multiple risks, from increasing chances of a cyber incident to cost inefficiencies, all of which will hamstring your operations and disrupt your business. Migrating to a modern solution will help you alleviate these burdens and position your company for success leveraging technology that works for you instead of challenging you.
Here are the top factors you need to know about cloud manufacturing accounting software:
Why Cloud Works for Manufacturing Accounting Software
Cloud-based systems represent a huge leap forward in how applications run and work, both changing the way your solutions are deployed and unlocking new ways to scale functionality for an individual program. Consider how often you view you interact with your personal platforms in an Internet browser like Chrome or Safari, or on a mobile app on a smartphone – without being bound to the limits of desktop software, you are able to engage with your systems how you want at your convenience. The same goes for financial management applications, especially at the SMB and midmarket business level when you have outgrown solutions like QuickBooks or Sage 50.
Legacy vs Cloud ERP for Manufacturers
Manufacturing ERP and accounting software are defined by their ability to streamline complex financial reporting workflows and connect them to operations happening throughout your production and supply chains. Unlike businesses in many other industries, for manufacturers the complexity of reports begins well before bookkeeping. Often intricate receipts of raw materials and other items are needed for accuracy, compliance, best practice or other demands and traceability is frequently a requirement.
The enduring strength of many legacy solutions has been their ability to keep track of all of these components and quite a few manufacturers have been hesitant to migrate when everything seems to be working already. However, this is a bit of a self-deception – cloud ERP and accounting software can achieve the same and more, being built with the same core functionality that is continuously thanks to their real-time connectivity as well as the flexibility of their architecture. Migrating to a modern, cloud-based system will grant you access to improved traceability as well as a surplus of other benefits, as can be seen in the comparison table:
| Feature | Cloud Accounting Software | Legacy ERP |
|---|---|---|
| Cost | Subscription-based, lower upfront costs | Higher initial investment for software and hardware |
| Customization | Flexible and easily customizable | Customization can be complex and costly |
| Data Accessibility | Real-time access to data from anywhere | Data access limited to on-site or via VPN |
| Deployment | Accessible anywhere with Internet from any device with browser capability | On-premise, limited to specific locations with local installation or direct remote access on a desktop computer |
| Integration | Easily integrates with other cloud applications | Integration may be complex and limited |
| Scalability | Easily scalable with business growth | Scaling up often requires significant upgrades |
| Security | High-level security managed by the provider | Security managed in-house, requiring manual updates |
| Updates | Automatic updates without downtime | Manual update process, potentially leading to downtime |
Sage Intacct – Top Accounting Software for Manufacturing
Sage Intacct is a market-leading accounting software that is born-in-the-cloud and provides state-of-the-art, AI-powered capabilities for financial management, bookkeeping, budgeting and more. Some of its top features include:
- Dimensional Accounting: Enables tagging of financial transactions with dimensions like project, department, and location for granular financial analysis
- Revenue Recognition Management: Supports complex revenue recognition requirements for subscription-based and project-based revenue streams, compliant with ASC 606 and IFRS 15
- Advanced Reporting and Dashboards: Offers real-time financial and operational reporting capabilities with customizable dashboards and the ability to drill down into transactional details
Sage Intacct also features additional functionality for inventory and order tracking, enabling manufacturers and distributors to connect their financial and operational silos as well as apply connected automations for both categories.
Cloud-native SaaS Accounting Software
SaaS (Software as a Service) refers to applications that are cloud-native, or completely designed from the ground up in a digital environment. This is opposed to legacy on-premise solutions that were later migrated to cloud-based connectivity, such as Sage 50 Accounting or Sage 300cloud. Being built in the cloud, Sage Intacct gains several advantages over traditional ERP, including a faster deployment time that can be condensed to weeks instead of months or even years.
Sage Distribution and Manufacturing Operations (SDMO) Module
Sage Group plc announced a new module in 2023 called Sage Distribution and Manufacturing Operations (SDMO), which is a purpose-built, native integration for Sage Intacct that greatly extends its functionality for inventory and production tracking. With this add-on connected to your core financial application, you are able to capture a consolidated view of all of your data at once and automate activities in procurement, warehouse management, resource tracking, task tracking and more.
SDMO Features:
- Make and Assemble: Plan the most effective use of resources to optimize cost savings within all aspects of making and assembling products
- Sell and Distribute: Modernize best practices throughout your entire order to ship process from receiving orders to shipping goods and managing returns
- Buy and Put Away: Simplify internal communication when ordering materials from suppliers with a guided and flexible process
- Move and Store: Use real-time data and user-defined alerts to manage and maintain inventory across the full lifecycle
- Design Items: Design with cost visibility and establish cost controls down to a bill of material and routing level
SDMO Benefits for Manufacturers:
- Multi-entity, Multi-language, and Multi-currency Support: For manufacturers operating on a global scale, these features ensure seamless operations and consistent reporting across different geographies
- Real-time Data and Alerts: The use of real-time data and user-defined alerts for inventory management helps in maintaining accurate stock levels and reducing waste
- Cost Visibility and Control: SDMO provides detailed costing at the bill of materials and routing level, allowing manufacturers to make informed pricing and profitability decisions
- Agility and Resilience: The API framework of SDMO facilitates easy integration with other best-of-breed applications, providing you with the agility you need to adapt your infrastructure for new changes and growth
Migrate to Cloud Manufacturing Software to Future-proof Your Business
Migrating from your legacy ERP to a modern accounting system such as Sage Intacct will empower your business unlock the future, ensuring that you receive access to the latest technology innovations and capabilities instead of being held back by outdated performance limitations. As a longtime Sage partner that has helped many manufacturers digitally transform their processes, SWK Technologies is here to help guide you on your journey and ensure that you get the most out of your technology investment.
Contact SWK today to learn more about Sage Intacct and see for yourself how it will help you streamline your manufacturing and accounting operations.