Digital Media Accounting

1. Digital Media Accounting • Outsourced Accounting Solutions for startups • Featuring Q

2. About me • Nancy McKenna- • SENIOR FINANCIAL MANAGER with over 25 years of accounting experience working in various operational accounting functions for top companies, including seven years at IAC/Interactive, and two with various startups. Nancy is a Quickbooks Pro Advisor with strong history of automation and process improvements

3. Opportunities • Most startups use Quickbooks for their accounting. Most don’t understand Quickbooks’ strength and capabilities, or the added flexibility offered by its partners, so end up having bloated accounting departments • Startups have a limited time to succeed or fail, and headcount-related costs can quickly eat into funds • We feel there is a significant opportunity to address this problem with our system

4. Business Concept • We’ve identified advanced features in Quickbooks and its partners that will allow companies to outsource or automate most of their accounting functions. • Quickbooks partners are vetted by Intuit, are SAS70 certified, and are cloud-based • We have developed a replicable model that will allow us to manage the accounting and analysis for multiple businesses. We used the standardization franchises utilize to success as inspiration.

5. Exception-based philosophy • We believe in automating as much as possible, and dealing only with exceptions • This allows for the ultimate in scalability. This practice allowed us to handle double the volume when the shared service operation we ran for our former employer was tasked to take on an additional 100% volume after an acquisition • With this in mind, and with the proper strategic vision upfront, data can be captured in such a way as to allow detailed reporting which will help to clearly identify a businesses’ performance. This is the most important part of the puzzle

6. Functions AR Payroll AP Company Month-end close Financial analysis

7. Functions- describe the process • AP – Bill.com can process AP. Invoices are sent directly to Bill.com. Company has full approval authority and online access. Integrates with Tallie for expense reports. • AR – invoices can be uploaded, integrating with SalesForce. • CRM– SalesForceis available as a Quickbooks add-on for $70/month/user • Collections – ABC/Amega can handle collections. I have worked with them before • Payroll– most companies already use third party for payroll. • Month-end close and reporting- set up recurring reports, journal entries

8. Functions – process defined, contd. • Month-end Close- Set up most journals as recurring. Fully reconcile balance sheet • Financial analysis and Reporting - Use query tools to pull recurring meaningful reporting • Tax work – set up required reports as recurring • Audits – set up required reports as recurring. Give auditors access to cloud-based records so they can access as needed • Board meeting prep - • Data – most importantly, data must be captured at the required level of detail so reporting and analysis and tax work is done easily . Very commonly where time is spent- retroactively trying to parse data

9. Key issues • The cost of outsourcing functions is nominal • The third parties are subject-matter experts- AP company only handles AP • The large accounting staffs at most companies aren’t necessarily even doing a thorough job. Possibly because they are too caught up in the minutiae our outsourced solution would eliminate.

10. What to do first? • Start on the outsourcing journey with Accounts Payable. Bill.com and Tallie (for expenses) are very easy to implement, and are very visible to the rest of the company. • Your coworker will notice immediately, and will begin to have more respect for the accounting department.