Discover how to revolutionise financial management in the steel & metals industry with Sage Intacct, the leading ERP software designed for your sector's needs.
There are some aspects of running a business that are part of every industry and activity. Although some challenges are very specific to the steel and metals industry, others, such as finance and inventory management, can be found in any sector. The truth is there are some activities that are extremely necessary but are not part of the core business of a company, which might make them even more difficult to complete.
Technology is here to help! With the right tools, businesses can automate processes and streamline otherwise tedious tasks.
In this article, we look at how Sage Intacct can benefit companies in the steel and metal industry, the tasks it can facilitate, and how this tool can be implemented.
Using Sage Intacct In the Metal Industry
As frequently discussed in our blog, Sage Intacct is a cloud-based financial management software designed to streamline accounting processes for businesses across various industries, including the metal and steel industry.
Since the software offers robust financial management capabilities, it allows metal and steel companies to manage their finances efficiently. This includes features such as accounts payable, accounts receivable, general ledger, and cash management. Metal and steel companies can track their income, expenses, and cash flow accurately in real-time.
Sage Intacct also offers boosted inventory management efficiency. Metal and steel companies often deal with large inventories of raw materials, work-in-progress goods, and finished products. Sage Intacct provides inventory management tools that enable companies to track inventory levels, monitor stock movements, and optimise inventory turnover. This ensures that companies have the right amount of inventory on hand to meet customer demand while minimising carrying costs.
For companies working on projects with specific budgets, timelines, and deliverables, Sage Intacct's project accounting functionality allows them to track project-related expenses, allocate costs to specific projects or jobs, and monitor project profitability in real-time.
Companies with multiple subsidiaries or divisions can also benefit from Sage Intacct's multi-entity management capabilities. This feature allows companies to consolidate financial data from multiple entities, streamline intercompany transactions, and generate consolidated financial reports. Organisations can gain better visibility into their overall financial performance and make more informed business decisions.
Sage Intacct also helps companies ensure compliance with regulations such as GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards). The software simplifies the process of generating financial reports, including income statements, balance sheets, and cash flow statements, making it easier for metal and steel companies to meet reporting deadlines and communicate financial results to stakeholders.
Metal Industry Tasks Sage Intacct Can Perform
As explained above, Sage Intacct can significantly optimise processes for companies in the metal industry. With a better understanding of what the software can do, organisations can then decide where this tool can be best employed.
Here are some of the specific tasks Sage Intacct can do in the metal industry:
- 1. Job Costing
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Sage Intacct offers robust job costing and project accounting features that can greatly benefit companies in the metal industry. The tool allows companies to create detailed budgets for each project or job. These budgets can include labour costs, material costs, overhead expenses, and other project-related expenses. By setting up budgets in advance, companies can establish cost targets and track actual costs against budgeted amounts throughout the project lifecycle.
Sage Intacct also offers time tracking functionality that allows employees to record the time they spend on various tasks or projects. This enables companies to track labour costs accurately and allocate labour expenses to specific projects or jobs.
With flexible revenue recognition methods, companies can recognise revenue for projects based on completion percentage, milestones achieved, or other criteria. This ensures that revenue is recognised accurately and in accordance with accounting standards such as ASC 606 or IFRS 15.
- 2. Accounts Payable (AP) and Accounts Receivable (AR)
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Sage Intacct streamlines the Accounts Payable (AP) process by automating invoice processing tasks. It allows companies to capture, review, and approve invoices electronically, reducing manual data entry and processing time. Automated workflows route invoices for approval based on predefined rules, ensuring timely processing and payment.
It also enables companies to manage vendor information centrally, including contact details, payment terms, and vendor-specific pricing agreements. This helps streamline communication with vendors and ensures that payment terms are adhered to consistently.
Furthermore, Sage Intacct simplifies the Accounts Receivable (AR) process as well, enabling companies to generate and send invoices to customers electronically. Invoices can be customised with company branding, terms, and payment instructions. Automated invoicing workflows streamline the invoicing process and ensure timely delivery to customers.
Companies can also use Sage Intacct to manage credit limits, monitor customer creditworthiness, and track overdue payments. The tool provides alerts and notifications for overdue invoices, allowing companies to follow up with customers promptly and minimise the risk of bad debts.
- 3. General Ledger and Financial Reporting
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Sage Intacct allows companies to customise their chart of accounts to reflect their organisational structure, business activities, and reporting requirements. Companies can define account segments, hierarchies, and attributes to categorise transactions accurately and facilitate financial analysis.
With its features, Sage Intacct also enables companies to record journal entries and transactions efficiently. It supports various transaction types, including sales transactions, purchase transactions, payroll entries, and accruals. Automated workflows and approval processes streamline transaction recording and ensure accuracy.
Many metal industry companies operate globally and deal with transactions in multiple currencies. The software supports multi-currency accounting, allowing companies to record transactions in different currencies, perform currency conversions, and maintain accurate financial records for international operations.
With Sage Intacct, it is also possible to create and customise financial reports, dashboards, and KPI (Key Performance Indicator) metrics. Companies can tailor reports to meet specific business needs, analyse financial data from different perspectives, and gain insights into business performance.
Sage Intacct also helps companies comply with accounting standards such as GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards). It provides pre-built financial report templates and ensures that financial statements are prepared in accordance with regulatory requirements.
- 4. Multi-entity Consolidation
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Multi-entity consolidation is a critical aspect for metal industry companies with multiple subsidiaries or business units. Sage Intacct offers robust features to streamline the consolidation process, ensuring accurate reporting and financial management across the organisation.
With a centralised platform for managing financial data across multiple entities, companies can maintain their own set of books while still being part of a consolidated financial structure. This centralised approach streamlines financial management and ensures consistency in reporting practices.
Sage Intacct also automates intercompany transactions and reconciliation processes, allowing seamless exchange of financial data between entities. It eliminates manual efforts associated with intercompany accounting, such as recording intercompany sales, purchases, and transfers, and ensures accurate consolidation of financial results. It also automatically identifies and eliminates intercompany transactions and balances, ensuring that consolidated financial statements reflect the economic reality of the entire organisation rather than double-counting intercompany transactions.
How Can Your Metals Company Implement Sage Intacct?
Implementing Sage Intacct into the activities of companies in the metal industry involves several steps to ensure a seamless transition and effective utilisation of the software.
Assessment of Current Processes
Before integration, it's essential for your company to assess your current financial processes, including accounting, inventory management, project costing, and reporting. Identify pain points, inefficiencies, and areas for improvement that Sage Intacct can address.
Customisation and Configuration
Work with our Sage Intacct implementation consultants to customise and configure the software according to the specific needs and workflows of your company. This may involve setting up a chart of accounts, configuring inventory management settings, defining project structures, and customising financial reports.
Data Migration
Transfer existing financial data, including accounts receivable, accounts payable, general ledger balances, inventory records, and project information, from legacy systems or spreadsheets to Sage Intacct. Ensure data accuracy and integrity through validation and reconciliation processes.
Training and Change Management
We provide comprehensive Sage Intacct training to employees on how to use this powerful software effectively for their respective roles and responsibilities. Offer support and guidance to help employees adapt to new processes and workflows introduced by the software. Implement change management strategies to foster adoption and minimise resistance to change.
Integration with Third-party Systems
Integrate Sage Intacct with other systems and applications used in the metal industry, such as CRM, ERP, manufacturing software, and business intelligence tools. The software also integrates easily and seamlessly with industry-specific software, and Accord has experience with integrating Sage systems with iMetal by Metalogic. Leverage Sage Intacct's APIs (Application Programming Interfaces) or pre-built connectors to enable seamless data exchange and synchronisation between different systems.
Testing and Validation
Conduct thorough testing of Sage Intacct integration to ensure that data flows accurately between systems, calculations are correct, and reports are generated as expected. Validate integration workflows and configurations to identify and resolve any issues or discrepancies.
Go-live and Deployment
Plan and schedule the go-live date for Sage Intacct deployment, taking into account factors such as business cycle, workload, and availability of key personnel. Execute the deployment plan, monitor the transition process, and provide support to address any issues or concerns that arise during the initial phase of implementation.
Conclusion
As we've discussed in this article, every company in every industry has to deal with some challenging administrative and financial tasks. However, the right tools can streamline processes and make some of these activities less complicated.
Sage Intacct can be an invaluable tool for companies in the steel and metal industry, auxiliating with inventory management, project budgeting, financial reporting, and compliance. Working with the software can allow companies to concentrate their efforts on their core businesses, ensuring the crucial tasks involved in financing are optimised.
Book Your Free Sage Intacct Discovery Call Today and discover how it can help your company be more efficient and better prepared for the future.