Cloud computing and SaaS have made managing IT costs increasingly complex. At the same time, the traditional view of IT as a cost center is giving way to a more business-oriented perspective. To achieve this dual transformation, organizations are embracing initiatives...
Finance Articles
FinOps: A CFO’s Playbook for Maximizing Cloud ROI
Introduction: Why Should CFOs Care about Cloud Spend? According to O-Reilly more than 90% of organizations use the cloud and per Gartner 85% of organizations will be cloud-first by 2025. All of that cloud usage adds up - with Business Wire projecting that the global...
Operating Expenses Explained: Types, Examples, Accounting, & More
1. What are operating expenses? 2. Operating expenses vs. capital expenditures 3. Types of operating expenses Cost of goods sold (COGS) Selling, general, and administrative expenses (SG&A) Depreciation and amortization Research and development (R&D) Notable...
Be a Budget Hero: 5 Tips for Effective SaaS Budgeting
Introduction Software as a Service (SaaS) has become an indispensable part of the operational infrastructure of business, often ranking alongside leases and payroll as a top three expense. Given its significant impact on the balance sheet, thoughtful and effective...
10 Essential Tips for Effective Contract Negotiation
Contract negotiation is a critical process for any organization, as it directly impacts both operational efficiency and financial performance. Contracts form the foundation of business relationships, outlining the terms and conditions that govern transactions and...
A Step-by-Step Guide to Determining SaaS Cost Per Employee
As businesses increasingly rely on Software as a Service (SaaS) applications, understanding the costs associated with these subscriptions is essential to effective budgeting and financial management. Ahead of budget season, one significant metric to consider is the...
CLM + FCM: A Comprehensive Approach to Contract Management Explained
In today’s competitive and dynamic business environment, managing contracts efficiently is key. Effective contract management helps organizations mitigate risks, ensure compliance, increase efficiency, control costs, and reduce errors. To help companies better manage...
Financial Contract Types and More Explained for CFOs and Finance Pros
Navigating corporate finance requires a solid understanding of financial agreements essential for CFOs and finance professionals. These contracts play a vital role in corporate finance, helping businesses manage risks, secure funding, and facilitate mergers and...
Unlocking the Power of Lease Accounting Data: A Guide for FP&A
Financial Planning & Analysis (FP&A) plays a crucial role as a strategic partner to the business, utilizing financial analysis and forecasting to help guide decision-making. Their responsibilities include drafting budgets and forecasts, optimizing the...
Revolutionize Financial Management with Contract & Spend Intelligence
Today's CFOs face a rapidly changing landscape, with their roles evolving beyond traditional financial responsibilities. They are no longer just gatekeepers of financial accuracy or bean counters diligently tracking expenses, but rather key architects of business...
Bonds Payable: Understanding the Basics of Accounting for Bonds
1. What are bonds payable? Interest in bonds Discount vs. premium Issuance costs 2. Bonds payable accounting Amortization of the discount or premium 3. Summary 4. Related articlesWhen an organization requires additional funds, a common action is to borrow money from a...
Crucial Items in Preparing for Acquisition or Sale: Your Software and Contracts
Several years ago, my business partners and I sold our business to a large, publicly traded company. The due diligence process was a bear. Fielding incoming requests seemingly every hour while simultaneously running our business as normal was taxing and stressful....
CapEx vs. OpEx: Capital and Operating Expenses Explained
1. CapEx (Capital Expenditures) How is CapEx reported? 2. OpEx (Operating Expenses) How is OpEx reported? 3. Is software CapEx or OpEx? 4. CapEx vs OpEx: Which is better? 5. Summary 6. Related articlesEvery company has a variety of costs, from office leases to...
Financial Contract Management: A Guide for Finance Teams
1. What is financial contract management? 2. Benefits of financial contract management Central repository Visibility Ease of use 3. How these features facilitate budgeting Single source of truth Critical date knowledge Research effectively Visible obligations Quicker...
From Chaos to Control: A Five-Step Approach to Effective SaaS Spend Management for CFOs and Their Teams
As presented in our previous article Managing SaaS Expenditures: Key Questions for CFOs to Consider, SaaS spend management is a critical task for finance leaders, as SaaS applications can represent a significant portion of a company's IT budget. With the rapid growth...
The Operating Budget: A Step-by-Step Approach
1. Operating budget defined What is the importance of the operating budget? Operating budget vs. capital budget 2. Creating operational budgeting goals Increasing revenue Cutting expenses 3. Largest expenses of the operating budget People expense Rent expense Saas...
Lease vs. Buy Analysis and Calculator for Business – How to Determine When to Lease or Buy an Asset
1. Benefits of leasing vs. buying Benefits of leasing Benefits of buying Disadvantage of leasing Disadvantage of buying 2. Lease vs. Buy Analysis: Five Factors to Consider 1. How long will you need the item and how much is it worth? 2. What is feasible for your...
Equipment Lease Accounting under ASC 842 and the Benefits of Leasing Equipment vs. Buying Explained
1. Capital/finance lease criteria Example scenarios of capital/finance leased equipment 2. Example: Equipment lease under ASC 842 Opening calculation Amortization schedule Journal entries 3. Leasing vs. buying equipment Benefits of leasing Benefits of buying Financial...
IRS Section 179, ASC 842, and the Impact on Lease vs. Buy Decisions
1. Understanding IRS Section 179 Section 179 and bonus depreciation 2. How IRS 179 affects lease vs. buy considerations 3. How new lease guidance affects lease vs. buy decisions 4. Getting it right with a collaborative decision-making process 5. Related...
Improving Capital Budgeting Decisions Using Finance and Accounting Tools
1. Capital budgeting in corporate finance 2. Capital budgeting methods 3. Finance and accounting tools ERP Fixed asset systems Lease accounting systems Lease administration systems Lease vs. buy calculator Capital budgeting in corporate finance Capital budgeting is...
Off-Balance-Sheet Financing (OBSF) and Liabilities Impacted by New Operating Lease Accounting Rules
1. Off-balance-sheet financing 2. Examples of off-balance-sheet liabilities 3. OBS accounting activities targeted by the Boards 4. Off-balance-sheet leases: How were they recorded? 5. Recording capital leases on the balance sheet under ASC 840 6. Benefits of...
How the Lease Accounting Changes Have Impacted Balance Sheet Liabilities
When the FASB’s changes to lease accounting standards were released in 2016, it was hailed as one of the biggest changes to accounting in decades. After the implementation of the new rules began in earnest in 2019, it became clear that the magnitude of the impact on...
Tool | Lease vs Buy Calculator
What Is the Early Impact of ASC 842 for Investors?
Now that public companies have completed or are in the final stages of their lease accounting transition, we can get an idea of what the ripple effect of the new lease accounting guidance will be beyond the accounting department. One of the main factors driving the...