Does Today’s Cloud Accounting Software Need A New Acronym?

cloud-accounting-software | Photo Courtesy of	 Guillaume Lemoine software is changing. While buyers might use the term ERP to describe the software they’re looking for, businesses in today’s highly automated environment need more than what conventional ERP ever delivered.

“The problem we solve for our customer looks nothing like ERP,” says Zach Nelson, CEO of NetSuite, the most popular cloud ERP software suite. “But we have to speak in their language.”

An article on the Enterprise Irregulars website suggests a new acronym, FRM, is better suited to describe today’s cloud accounting software that focuses on financial and revenue management.

FRM is fitting because more companies are focusing on revenue management. Traditionally, companies have billed in batches, meaning they might bill everyone on the 20th of the month. The problem with that is if the customer’s renewal date is on the third of the month, they’re missing 17 days to get the cash in the door more quickly.

Due to the changing ways in which companies interact with their customers, financial, revenue and collection management will be critical to customer retention and satisfaction.

Cloud-based systems like NetSuite offer the flexibility and speed to quickly introduce new features and functions, the Enterprise Irregulars article explains.

The beauty of NetSuite is that it provides a 360-degree view of a company’s interactions with its customers, from inception to repurchase of services or products. That allows the ability to generate bills in real time.

Plus, the launch of NetSuite SuiteCommerce is going to change how NetSuite interacts with customers and products on a Web or mobile platform. It’ll give them a deep dive into that market.

Another financial and revenue management vendor that’s growing quickly is Workday. It could wrestle important contracts from some of the more established vendors this year.

Larger enterprises will adopt Workday for expense and basic financial management as well as human capital management. Companies that are service focused and have no complex operational information they need to manage, but have a large volume of financial management data, will do real well with Workday.

Source: Enterprise Irregulars, January 2013