“Everything is going to the cloud,” says Emily Madere in the latest episode of the Unofficial Sage podcast. For Certified Public Accountants (CPAs), this shift isn’t just a trend—it’s a fundamental change reshaping the future of financial management and analysis.
As Sage, a leading accounting software provider, transitions to a cloud-centric, partner-rich ecosystem, CPAs find themselves at a pivotal crossroads. Real-time financial analysis and automated compliance tools promise to revolutionize client services. However, leveraging these advancements requires carefully reevaluating firm technology strategies and service models.
In this podcast episode, industry experts Doug Lewis, Emily Madere, and Matt Lescault delve into the intricacies of Sage’s cloud transformation. They explore how this shift is reshaping Sage’s core products, expanding the role of Marketplace Partners, and reflecting broader trends in cloud migration across the accounting software landscape.
Sage’s Shift to a Cloud-Centric Ecosystem
The Rise of Sage Intacct
At the heart of Sage’s cloud strategy is Sage Intacct, a product synonymous with modern, cloud-based financial management. Acquired by Sage in 2017, Intacct was built from the ground up as a cloud solution, offering real-time data access and automated updates without needing on-premises infrastructure.
Initially strong in the nonprofit sector, Sage Intacct has rapidly expanded its reach. Matt notes, “It quickly turned into a valuable product in SaaS, financial services, family offices, professional services, and healthcare. It expanded quickly into other industries.”
Competing in the Mid-Market Space
In the mid-market arena, Sage Intacct now competes with products like NetSuite and Microsoft Dynamics. Matt says, “Sage continues to win from a functionality, capability, and user experience perspective.” This competitive edge is crucial for CPAs evaluating which platform to recommend to clients or adopt in their practices.
The Role of Marketplace Partners
A key component of Sage’s evolving ecosystem is the Marketplace Partners (MMPs)—third-party solutions that integrate with Sage products to extend functionality and create customized solutions.
“The Sage marketplace has tripled or quadrupled in size over the past six years,” says Matt. This rapid expansion reflects the growing demand for specialized, integrated solutions in accounting.
Benefits for CPAs
This partner-rich ecosystem offers several advantages for CPAs:
- Flexibility: Firms can choose the exact combination of tools that best fit their or their clients’ needs.
- Specialization: MMPs provide deep functionality in specific areas beyond the core Sage products.
- Innovation: The marketplace model encourages continuous innovation as partners compete to offer the best solutions.
The Cloud Migration Paradigm Shift
Sage’s ecosystem evolution is part of a larger paradigm shift in the accounting industry: the widespread migration to cloud-based solutions. This shift profoundly impacts product development strategies, and many competitors are following suit.
Opportunities and Challenges for CPAs
For CPAs, cloud migration presents significant opportunities and challenges:
- Real-time Financial Analysis: Cloud-based solutions enable instant access to up-to-date financial data, allowing for timely and accurate advice.
- Automated Compliance Tools: Many cloud platforms offer built-in compliance features, streamlining regulatory adherence.
- Remote Work Capabilities: Cloud solutions facilitate seamless remote work, expanding a firm’s talent pool and client base beyond geographical constraints.
- Continuous Learning: The rapidly evolving technology landscape requires ongoing education and adaptation.
Looking Ahead: Global Expansion and Future Developments
As Sage continues to invest in its cloud-based ecosystem, the company is expanding its global footprint. Sage Intacct has been launched in several countries beyond the U.S., with more on the horizon. This global expansion drives further investment in the product’s capabilities, benefiting users across all markets.
While Sage Intacct remains the flagship product for mid-market businesses, Sage X3 is the company’s offering for larger enterprises, particularly in manufacturing and distribution. Though less prominent in the US market, X3 competes with major ERP systems from SAP and Oracle in other regions.
Sage’s transition to a cloud-centric, partner-rich ecosystem represents a paradigm shift for CPAs. It offers powerful tools for real-time financial analysis and automated compliance while demanding a reevaluation of firm technology strategies and client service models.
To maximize return on investment and position their practices for future success, CPAs should:
- Embrace Cloud-Based Tools: Enhance efficiency and client service through cloud solutions.
- Integrate Marketplace Partners: Carefully evaluate and incorporate MMPs to create tailored solutions.
- Invest in Continuous Learning: Stay ahead of technological advancements through ongoing education.
- Reimagine Service Offerings: Leverage real-time data and analytics capabilities to transform client services.
The cloud-centric future of accounting is not just about adopting new technology—it’s about transforming how CPAs deliver value to their clients. As the Sage ecosystem continues to evolve, staying informed and adaptable will be key to success in this new era of cloud-based accounting.
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