Home Icon

Loading, Please Wait...

CST: 18/09/2020 21:20:16   

Sage Helps Elemica Create $3M in Operational Cash Flow and Reduce Days Receivables by 28 Percent

513 Days ago

Digital Supply Network Implements Sage Intacct to Cut Financial Close Process in Half and Improve Earnings by 10 Percent

ATLANTA, April 24, 2019 (GLOBE NEWSWIRE) -- Sage (FTSE: SGE), the market leader in cloud business management solutions, today announced that Elemica has implemented Sage Intacct, a solution available in the Sage Business Cloud, to reduce days sales outstanding (DSO) from 90 to 65 days and improve its EBITDA by 10 percent in the next year. The move to a modern, cloud financial system has helped the company deliver $3 million in operational cash flow improvements.

Founded in 2000, Elemica is a leading digital supply network for process manufacturers. Approximately $500B in goods are bought, sold, and moved annually through Elemica. The organization previously relied on a legacy Microsoft Dynamics NAV system with heavy use of Excel for key financial processes, but discovered that the system required tedious work outside the core system. Spreadsheets and an Outlook calendar were used to manage revenue and billings, while accountants wrote paper checks and entered payables data manually into Microsoft Dynamics and Excel. That high manual workload left little to no time for strategic analysis to grow the business.

“Moving to Sage Intacct has established professional level controls for us and gives us a single place to make sure we’re invoicing correctly,” said Anthony Palladino, CFO at Elemica. “Our accounting team has always been staffed by skilled strategists. With Sage Intacct, we now have the time and opportunity to use those skills to grow the business.”

In a matter of months, Elemica reduced its days sales outstanding (DSO) from 90 to 65 days — a 28% improvement that created $3 million in new operational cash flow. These improvements enable Elemica to develop the next version of its platform and ramp up sales. Sage Intacct has also created new opportunities for the accounting team to align with departmental managers on budgeting. Rather than consolidated, high-level information of the past, managers have detailed P&L statements, as well as budget-to-actual reports in as little as 10 days after the month-end close. Elemica realized other significant benefits, including:

  • Deeper, more timely insights into costs and revenue: Elemica is on track to improve its EBITDA by 10% within a year — a multimillion-dollar impact to the bottom line.
  •  Faster, more efficient financial management: Reduced time needed for its monthly close from 16 days to eight days. Paper-based payables that required physical check signing have been automated with Sage Intacct.
  • Automated revenue recognition in a single system: Elemica identified $80,000 in overlooked revenue and can now do forecasting based on billings, cash, and revenue.
  • Quicker monthly board reporting: After a recent acquisition, Elemica’s board expected detailed financial reports that would have been difficult to assemble in its previous system. Leveraging the integration between Sage Intacct and Adaptive Insights’ budgeting and planning application, Elemica’s finance team can now produce monthly board reports in a matter of hours.

“Board reporting that took us days in Excel now takes a few hours to do through a combination of Adaptive Insights and Sage Intacct,” said Kiely Fagan, Director of Financial Operations at Elemica. “We spent most of our time getting ready for monthly board meetings and had no time to really analyze the numbers and make changes based on that. We're definitely in a much better position now that we're system-driven and automated with Sage Intacct. We’re set up for the future, for growth, for acquisitions, much better than we were before.”

For more information on how Elemica uses Sage Intacct, view the full case study.

About Sage
Sage (FTSE: SGE) is the global market leader for technology that helps businesses of all sizes manage everything from money to people – whether they’re a start-up, scale-up, or enterprise. We do this through Sage Business Cloud – the one and only platform that customers will ever need, comprising Accounting, Financials, Sage Intacct, Enterprise Management, People & Payroll, and Payments & Banking.

Our mission is to free business builders from the burden of admin, so they can spend more time doing what they love – and we do that every day for three million customers across 23 countries, through our 13,000 colleagues and a network of accountants and partners. We are committed to doing business the right way and giving back to our communities through Sage Foundation. Find out more at www.sage.com/en-us.

Press Contact:
Peter Olson
Sage
408-878-0951
peter.olson@sage.com
http://www.twitter.com/PeterOlsonPR

We Are Diffrent
Is your business listed correctly on America’s largest city directory network of 1,000 portals?