Often in business, when discussing CRM integration with third systems, employers initially consider the use of web services that support cross-platform application interaction well, one of which is FinancialForce accounting.
How to Make Better Integration with Virtual Data Rom Providers?
There is a popular belief that in order to provide financial management in FinancialForce accounting, you should definitely use third-party applications. Indeed, there are various tools on the market that provide rich functionalities for accounting, finance, and asset management. However, in many cases, you can take a simple enough approach that can transform a FinancialForce accounting implementation from a “simple cloud CRM” into a robust financial system — without overwhelming it with too many applications.
Which companies will benefit from using FinancialForce accounting implemented by vdr providers for better integration? The most typical cases from practice:
- you need to reflect the transactions carried out in CRM, in the accounting system, and in the general ledger that are used in the organization;
- you need to reflect all transactions carried out in CRM in a way and in such a way that meets all the requirements of financial reporting in the company.
There are competitive advantages of a high and low order of FinancialForce accounting with vdr providers. The high-order advantage is costly to provide, but it is more reliable and has a longer duration. In order to achieve this, it is necessary that the management of the enterprise is competent and able to carry out transformations; long-term and intensive capital investments in production facilities, special training of personnel are also required. Low-order competitive advantage is less stable, since it is easily achievable, operates for a short time and is easy to adopt (cheap labor, low production costs, methods, and techniques borrowed from competitors
FinancialForce Accounting as the Best Tools to Provide Better Integration with VDR
Data integration with FinancialForce is the process of combining data. Thus, with the same revenue, the net profit increases due to cost reductions. It is important to note that the acquired company can generate even negative cash flow, but nevertheless contribute to obtaining an indirect effect. For example, it may own a patent that goes to new owners and will optimize costs, or gain access to some resources that will also reduce costs. In this case, as a result of the transaction, the buyer also receives a company with an increased market value.
FinancialForce together with virtual data room software should regularly report on budget utilization, synergies, and overall project progress and risk management. The authors note that most integration problems arise at this stage. However, thanks to the time control and monitoring of processes, the company can achieve success. Establishing external and internal communications for the dissemination of information, the involvement of the entire team in the process, creating a positive image, and providing feedback. All of this is necessary to maintain a relationship of trust, transparent transaction execution, and effective management of the company’s transformation.
Further, virtual data room service is underway to establish communications between all stakeholders and the appointment of responsible working groups for integration. It is necessary to make sure that all parties have a clear vision of the upcoming goals and objectives, as well as build trust between all parties to the transaction. The synergy effect can be called a simultaneous positive return from both effects: both a positive cash flow from the purchased company and a reduction in costs from the implementation of solutions that it used. As a result, the buyer’s profit grows significantly, as well as indirect benefits (deferred profit).