The hospitality industry goes up. The hospitality industry goes down. The hospitality industry goes up …
Basically, it fluctuates. Either seasonally or according to global trends. To manage your finances in these conditions, you need a robust, scalable, and sustainable financial management system.
Enter Sage Intacct, a cloud-based platform designed for specific industries, including hospitality-related businesses.
Let’s get cracking with this guide.
The Complexity Threshold
The complexity threshold is when growth exceeds your financial system’s capabilities. Basically, your current system throws in the towel. You need an upgraded system that copes with your growing requirements.
- Multi-entity & multi-currency operations: Automated financial operations and inter-company transaction management.
- Real-time operational visibility: On-demand access to financial and operational metrics.
Sage Intacct excels where Excel can’t, for example, multi-entity & global consolidations. It also earns its stripes by automating processes and managing more complex workflows.
For all its brilliance, Sage Intacct is not entirely suitable for certain organisations, for example, single-entity small businesses with basic needs and large enterprises with monolithic integration. These are the super-big boys. The biggest of fish in the biggest of pools that need to integrate with non-financial operations.
Software Modules: Standard vs. Add-On Functionality
Sage Intacct is scalable because you start with a core financial engine and add modules as you evolve. This foundation provides the sophistication necessary to manage daily operations and improve efficiency, like in-depth data analysis, quick supplier data processing, and real-time visibility and control over cash entities.
You can add modules to match your growth.
- Sage Intacct Planning includes driver-based planning and scenario modelling.
- Sage Fixed Assets automates depreciation and asset value tracking across entities.
- Sage Inventory Planner forecasts and buys stock to boost your bottom line.
Cost Structure & Pricing Model
Sage Intacct’s pricing model is subscription-based. The final cost depends on your specific requirements. Software is delivered via the Value-Added-Reseller (VAR) channel. So, you purchase products from preferred partners.
The annual subscription cost is determined by two core factors:
- User licensing: This is per-user/per-month. Role-based access ensures leaders only work with data relevant to their needs.
- Modules selected: Combines Core Financials and optional modules, like Project Accounting.
TCO is important here, so it’s good to know that Sage Intacct can deliver a 40% reduction in TCO through financial consolidation.
Compare cloud-based models to traditional on-premises software. It’s easier than it sounds because Sage Intacct does the converting for you. Subscriptions cover hosting, security, disaster recovery, and quarterly product updates.
Internal IT is a breeze, and ROI is jaw-dropping. For example, Tetherow found that they saved $75,000 in annual headcount costs.
Process & Partner Selection
Choose partners carefully because they’re responsible for the successful implementation and integration of Sage Intacct into your current financial system. Look for:
- Experience in the hospitality industry
- Proven track record
- Clear, structured deployment methodology
There’s a one-time implementation fee based on the project’s complexity. Factors include:
- Number and complexity of modules.
- Data migration from legacy or PMS/POS systems.
- Integrations with other business-critical applications.
Competitive Analysis & Market Positioning
Sage Intacct is the next step for businesses whose horizons have extended beyond QuickBooks capabilities, e.g.
- Financial management for several properties or franchises.
- Real-time dimensional reports without exporting manual data.
Should you choose Sage Intacct over monolithic ERPs?
- Best-in-Class. Sage Intacct’s a sophisticated, customizable cloud-based financial management solution that integrates with other best-in-class systems.
- All-in-One ERPs. Pretty much all business functions, from finance to supply chain, are on a single platform. It’s convenient, but doesn’t provide specialised features, like reservation management.
Vendor Evaluation: Demonstrations
Never choose a software vendor without ensuring the platform delivers on its promises. Always insist on product demonstrations.
Function-Specific Evaluation
Core capabilities essential for multi-property management and operational analysis.
- Reporting & GL: How the GL produces a real-time P&L statement filtered by franchise or a departmental cost center.
- Multi-entity management & consolidation: How they settle inter-entity transactions.
- Operational integration: How the system integrates with others, especially non-financial operational metrics.
- Labour & operational costing: How operational staff log time and expenses using the mobile app.
Operational & Partnership Evaluation
The long-term viability, support, and cloud architecture of the platform and partner ecosystems.
- Product roadmap & updates: How often are updates and features delivered?
- Support expertise: Does ongoing support come from industry experts?
- Security & access: How is data protected in the cloud? How do managers access financial data relevant to their location, while CFOs have a consolidated view?
- Scalability assurance: How the platform manages growth trajectories as your finances become more complex.
And in the End
Choosing Sage Intacct for hospitality is like upgrading the engine of a sprawling resort complex from separate, manually fuelled generators (your spreadsheets/legacy systems) to a centralized, smart power grid.
The benefits are immediately evident as the system masters complex load balancing (your multi-entity consolidations). It provides real-time diagnostics on energy c
