This week on NVTC’s blog, Marty Herbert of NeoSystems Corp. shares the second in a series of tips for workflow and process automation.


In Part 1 of our Workflow and Process Automation Series, Re-evaluating Your Processes, we looked at a few steps your organization can take towards drastically simplifying your billing process. Keep in mind that throughout this series, I will highlight solutions which produce time saving, compliance-driven processes that integrate with business systems, like Deltek Costpoint, NetSuite, SAP or others and create an enhanced workflow automation framework. In today’s post, Part 2 of our series, we’ll address vendor invoice processing.

A few years back, while working on a series of consulting projects, I looked at a client’s AP department while performing an audit and noted several variations they employed to process their vendor invoices. Some invoices came in via email, others via snail mail. Some came in to the attention of the company’s AP department; others came in via the project manager. Some were based on a PO and others were one-off ‘bills that needed to be paid.’ Knowing who the appropriate approver is could be multi-faceted and involve the receipt of goods (or services). Similar to many larger government contractors, our client used Deltek Costpoint for vendor invoice processing so I will use that system as an example of a well-known business system that is largely identifiable for our audience.

This business system has a great mechanism for capturing data and information related to accounts payable, but it can’t necessarily control how invoices are delivered, who approves them, and how that approval is captured for compliance purposes.

Our client’s overarching goal (outside of employing processes that increased efficiency and effectiveness) was to find a way to electronically interface an APPROVED invoice for vouchering in Costpoint. That sounds like a simple objective, but there are nuances that might not be immediately obvious. The “approved” aspect implies that there needs to be a process followed to obtain a valid, recognized approval. The “electronic” aspect implies that the entry into the ERP system should be automated without the need for manual data entry. Automated work flow tools make the design and controlled execution of a process possible, while Costpoint Web Services enables an electronic interface.

But, let’s slow down. Before we send data along, we have to gather the data. In this case the data comes from a vendor’s invoice, but we want to make sure the vendor’s invoice has been reviewed and approved before we send it into the system of record. The first step in automating this process is to gather the data input (the invoices). There are multiple ways we could approach this:

  • We can give vendors access to a “portal” whereby they upload the invoice directly into a workflow, or vendors can email the invoice to a specific address that will automate process kick-off and move it into a queue for AP servicing, or
  • We can receive a vendor invoice and initiate the process by loading it to the AP queue (potentially after scanning it in if it is received hard copy).

Then it is time to route the invoice to the proper ‘approver.” If companies are already connected to an ERP application that supports project management data, they are able to use the data inherent to any given project to pull the relevant approvers for PO-based invoices. AP clerks will then have matched the invoice to a PO (unless the vendor did that already) and chosen the lines from the PO to which the invoice applies then… well, that is all they have had to do so far.

Off to the approver(s) the invoice goes. The approver gets the invoice that has been submitted as well as details added by the AP department. The approver can decide to reject it or send it to another approver, or sit on it a while. Any (or all) of these tasks can be built into the process. The end result is (hopefully) an approved invoice.

At this point, the system should validate the invoice information and manage the voucher process through creation, voucher number generation, accept or reject status and check generation. It is critical and most efficient to have a complete trail of activity from submission to payment.

This process, when automated, is extremely easy to follow, saves time and money and is easier to implement than one might think. Unfortunately, most government contractors don’t know the ease with which automation software can achieve this and many other processes quickly and effectively.

There are numerous effective workflow management software systems in the market today. Integrify, a workflow management software used to automate a myriad of processes within a variety of platforms, is one tool we use at NeoSystems to automate vendor invoice processing within the business systems we use.

Our next blog will focus on the delightful automation of purchase requisition. If you have any burning questions about this or other processes (even those we haven’t gotten to yet!) using web services and workflow management software for your business system, please feel free to contact me.

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This week on NVTC’s blog, Marty Herbert of NeoSystems Corp. shares the first in a series of tips for workflow and process automation.


Marty HIf you are an ERP user, you likely know that most applications are rich with many features that address the nuances of running projects, especially if you are a government contractor.  However, no application can address the many steps that an organization must go through to accomplish what might be seen on the surface as a simple task.

Take ‘billing’ for example. I was asked a while back to determine how to route a bill for approval, and I thought it would be a “piece of cake”. Create bill. Send to approver. Get approval. Bill is right – Send to customer. Bill is wrong – rinse and repeat.  For this article, we’ll use commonly known GovCon ERP, Deltek Costpoint, as an example.  This system is very good at the first part. If you need to create a bill, you can create bill replete with support for hours worked and costs incurred. The problem, however, is there is no nice and simple way of implementing a workflow process that will accommodate most organization’s review and approval routines within the ERP framework.  That’s not a knock against Costpoint, no ERP systems on the market adequately address this issue, especially when you magnify it by the many, many other processes, that an organization has in place to accomplish their back office routines.

Over the next six weeks we will be taking a look at several areas where workflow plays a big role and how to leverage the automation of workflows via integration with your ERP. Companies unaware of how to automate in these areas are wasting precious time in determining the process, missing steps and ultimately don’t know how to streamline efficiencies that will save them money down the road.

In our first post for “Evaluating Your Process for Users of Deltek Costpoint or a Similar System,” I’ll examine the role of an AR clerk with my ‘piece of cake’ attempt at automating bill routing.

I had bills created from our ERP and I had Outlook, so I sent two bills to their respective approvers to verify hours were correct so we could bill the services to the client. Then I waited and waited and waited and waited… you get the picture. I followed up via email at least three times over the next week and finally, a week later, I knocked on their doors to see if they had time to review the email I sent.

‘Approver 1′ called me to his desk and had me look at the count of emails in his inbox. Until then, I was unaware that this number could go over 9,999, but there it was. I apologized and helped him find my email. Five minutes later he reviewed it and sent me an email saying we could bill it. Finally, the bill was out the door. I don’t remember whether I had to mail it or email it, but that is of no consequence. Oh, and of course, I forgot to tell my supervisor that I got the bill out the door so she was unnecessarily on my case the next morning.  I’ll try not to make that mistake again.

‘Approver 2′ (let’s call her Amy), asked if I had received her email. She said she responded immediately to each of the messages I sent, so I crept back to my cube and found her responses.  Suddenly I was the culprit in slowing down my own process! “Sorry, this Acme project isn’t mine,” she said. “These should go to Janet, she runs the Acme project.” Ugh! Wouldn’t you know she didn’t even have the courtesy to copy Janet on her response to me. So I just trudged down the hall to Janet’s office and had her review the paper copy. She looked at it briefly and said “yep, looks fine.” Great, I was out her door and happy to get the bill out of the door. Never mind that I forgot to get Janet to initial the invoice to indicate she had approved it and, of course, I forgot to tell my supervisor I sent the bill.  But, hey…bill is out the door, case closed.

Actually, the case was just getting started. The following week, in walks my supervisor. “I got a call from Acme Company’s CFO.  She asked me who Francis Miller was and why we were billing Acme for her travel to Las Vegas.  When I look in our system, this bill isn’t even posted, when did you send it out? Did you get Amy to review and approve this before you sent it out?” Sorry, I said, I forgot to post the bill in the system, and Amy said the project really belongs to Janet, so I got her to review and approve it…..see (as I pulled my copy from the file drawer). But, of course, Janet’s initials weren’t there.  Now my boss is mad at me for sending out an invoice that she thinks I didn’t get reviewed AND I forgot to post it. Swell.

I realized there was A LOT of room for improvement in this process. Problem #1, people are swarmed with email. Problem #2, people change roles and responsibilities a lot. Problem #3, no coordination with the ERP and the approval activities.  Problem #4, I can be my own worst enemy. Why couldn’t all this stuff be linked together somehow, and why isn’t there a way to get things posted in the system without me having to remember every little thing. I’m only human, after all. And this was a simple bill.  I could only imagine – or rather didn’t want to in this case – what would have happened if there had been revisions.

From experience I’ve gathered intelligence on how to sidestep these common pitfalls. Apart from working together as a team, companies always think in terms of making changes to their IT infrastructure. What I believe needs to happen is approaching these pitfalls in terms of changing the process infrastructure. There are no short term ‘quick fix’ changes, but rather logical steps toward automating manual processes that run at the heart of their businesses.Workflow

Step 1

Get people out of email and into a single system for approvals. This will help solve problem #1 and 3. By logging in to a single system for approvals, the approver should be able to get to a “To Do” list that helps them focus on the task(s) at hand. A system that alerts ONLY when an approval is required, and only when this task is “past due,” can assist in decreasing problem #1.

Step 2

Link your system to Deltek Costpoint or a similar platform! Not only does it save time from transferring information into Outlook, but it also ensures that the information will not be incorrectly entered or failed to be entered. Additionally, users can maintain project leads in Costpoint, and can link to a user in the system to automatically assign the approver to the person(s) involved in any given approval process. Problems #2 and 3 solved.

Step 3

Create a workflow that allows for rework, rejection, and handles the issues and items that may need to be addressed when something is “wrong.” That way, the stakeholders that need to be involved can be included automatically based on roles, or by selecting a user from a list of possible issues/departments involved. This decreases the amount of emails sent out for approvals. Assigning a task and automating reminders in the system accomplishes all these things.

Step 4

Solve Problem #4.  Remove yourself from your enemy list.  Relax. Stay out of email. Work on other things. Seriously. At a recent conference I attended, it was estimated that we spend around 28 percent of our work time sending or reading emails. What happens when you remove a single work stream worth of emails from your list of things to do? You can get back a piece of that time to work on other more pressing issues.

If it sounds like I’ve been through this process at least a few times, it’s because I have. Using the power of a business process management tool called Integrify, NeoSystems has automated this and other processes and tied those processes to Costpoint and similar platforms. Throughout this series, I will highlight the ways we have implemented, envisioned, and produced time-saving, compliance-driven processes that integrate with your ERP to create an Enhanced Workflow Automation Framework.

Have burning questions about Process Automation? Feel free to contact me ahead of next week’s blog post.

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LeaseWeb’s  introduces six tips to help you find the perfect cloud partner for your business.


By now, the concept of the cloud is ubiquitous, but for many business leaders the idea still presents more challenges than opportunities. Understanding the complicated technology, not to mention the vast array of delivery models, degrees of services and levels of security available, can be a daunting task for companies under pressure to adapt or adopt.

In a new white paper, “Developing a Cloud Sourcing Strategy: Six Steps to Select the Right Cloud Partner,” LeaseWeb gives decision makers the tools they need to formulate an effective cloud strategy or to identify the right cloud partner to executive it. In summary form, these six tips will help you find the cloud partner for your business.

  1. Support and services — For most businesses, concerns about cost, security, vendor management and technology take the lead in the search for a reliable cloud partner. Surprisingly, the ability of  a provider to smoothly and effectively deliver customer support, SLAs and managed services is often minimized or overlooked, at the expense of the customer. When deciding which cloud partner best fits your needs, don’t underestimate the crucial importance of the support and services they make available. It’s the difference between a cloud partnership that takes your business to new levels and one that just adds to your daily hassles.
  2. Architectural alignment — One of the biggest considerations is whether to use a hyper-scale or traditional hosting model. Practically speaking, a hyper-scale provider requires users to be responsible for operational, day-to-day tasks, while hosting providers oversee the day-to-day management of the infrastructure elements. It’s up to you to decide which is a better fit for your technical team and business needs.
  3. Security and compliance — Data centers are a frequent target of malicious attacks, so it’s important to make sure that your cloud provider is prepared for every eventuality. This means everything from physical security and network threat recognition, to regular security audits to updated compliance certifications like HIPAA. Your data is your most valuable asset, so make sure it’s going to be treated that way.
  4. Support for data sovereignty and residency requirements — In tandem with security and compliance issues, data residency is another issue that frequently stalls cloud and hosting projects. The growth of “bring your own device” (BYOD), big data and cloud projects is dragging sensitive data to third-party clouds and data centers. This makes many business owners uneasy, which is why it’s so important to address the location of your data, the laws governing the export of data wherever it’s stored and the security and encryption of that data.
  5. Financial management — Traditional hosting companies typically offer a more basic cost scheme, based upon initial configurations with monthly utilization. This traditional model works well for companies with steady and predictable usage patterns. Hyper-scale cloud services, on the other hand, were built around granular per minute or hourly costs from their inception. Provisioning is primarily self-service and allows users to turn up server, storage and network services. This feature appeals to users who need to spin up environments in near real time and then turn them down when not needed. Consider your requirements to determine which model fits you – or if you want a mix of both.
  6. Cultural and strategic alignment — Cultural fit with your service provider is a key point that never receives enough attention in the RFP process. For nearly all enterprises, using a cloud or hosting provider is truly a new venture, one that requires extensive internal buy-in. For first-time cloud buyers, the ongoing degree of partnership is an unknown factor. Each provider engages and on-boards clients differently.

If you’re in the process of picking a cloud partner for your business, remember that no one becomes a cloud infrastructure expert overnight. But with a smart approach, you can make an informed decision that will lead to great results for your company.

Ultimately, remember that you will only achieve the higher-performance and lower-cost environments you are aiming for by choosing the provider that fits your needs and requirements best.

To learn more, visit us at here to receive our full white paper on selecting the right cloud partner today.

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Growth Companies Benefit From Final Crowdfunding Rules

December 8th, 2015 | Posted by Sarah Jones in Guest Blogs - (Comments Off)

This week on NVTC’s blog, Alex Castelli of NVTC member CohnReznick shares how the SEC’s adoption of new crowdfunding rules could be a game changer for growth-focused businesses and investors.


The SEC’s adoption of new crowdfunding rules could be a game changer for growth-focused businesses and investors

On Oct. 30, 2015, the SEC approved final rules that permit companies to offer and sell securities through crowdfunding. The new rules provide another capital raising option for growth-oriented companies and offer additional options for investors who want to get in on the ground floor of in what could be a very successful business.

Benefits to Companies and Investors

Some of the key benefits of the SEC’s rules permitting crowdfunding or, simply put, the ability of companies to raise capital from the general public through the Internet are listed below.

  • Early-stage and growth companies that may be unable or unwilling to raise capital from institutional or private investors have access to another source of capital.
  • By offering and selling equity in their company through the Internet, companies gain a wider and more efficient distribution of the offering to a larger audience when compared to traditional sources.
  • Using the Internet to offer and sell securities should decrease the cost of capital
  • Non-accredited individual investors, previously excluded from equity crowdfunding investments, are now invited to become investors with certain limitations.
  • Investors have a level of protection since companies raising capital through crowdfunding will be required to utilize funding portals or registered broker dealers and will have certain disclosure requirements to investors. Additionally, funding portals that wish to participate in the crowdfunding process as an intermediary will be required to register with the SEC and become a member of FINRA.

Launching Your Crowdfunding Campaign

Even if you are a tremendously successful owner or executive, a successful crowdfunding effort will require expert marketing surrounding your efforts to raise funds. You and the members of your management team will assume the responsibility of formulating a marketing campaign to create interest in your offering. You’ll need a good story to tell investors complete with business plans, financial statements and projections.

In the crowd, you’ll be competing for investment dollars with other companies so you need to engage in strategies to elevate your offering over all others. Earning the trust and confidence of investors can lead to a successful offering. Consider activities that could strengthen your relationships with clients, customers, and even vendors. These relationships may help to support a successful crowdfunding campaign and could represent your future investors.

To launch your crowdfunding campaign, you’ll be using the services of an SEC registered broker/dealer or SEC registered crowdfunding platform or funding portal. Each will probably offer different services and fee structures. Once your customers, clients, and vendors have invested in your business, you may want to reach out to a broader base of potential investors. Getting your offer in front of the right investors will be critical to achieving your capital raising goals.

As a private company, you may not be accustomed to sharing operational and financial information publically. A successful crowdfunding campaign may require additional transparency if you are to build trust and confidence in prospective investors. If you are not comfortable sharing company information with the world, you may want to explore a more proprietary method of raising capital.

Once you have executed a successful crowdfunding campaign, you will need to have a plan on how you will continue to communicate to your new investors. How much information are you willing to share? Which rights to information will investors have? Consider creating an investor-only section on your company’s website where you can post periodic information about your company’s progress, financial results, etc. Transparency is the key if you want to keep your investors informed and hungry to make additional investment in the future.

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This week on NVTC’s blog, Alex Castelli, CPA, is partner and Technology and Life Sciences Industry Practice Leader at NVTC member company CohnReznick, explains how crowdfunding has become such an attractive financing vehicle for technology companies.


7K0A0597[1]The technology industry stands out as a major beneficiary of this promising method of capital raising. In 2014, technology was a leading sector in terms of capital commitments – at around $98.5 million – and led the number of raises that have been offered since inception, according to Crowdnetic’s Quarterly Private Companies Publicly Raising Data Analysis.2 Capital commitments in the technology industry trailed only behind the services industry.

So why has crowdfunding become such an attractive financing vehicle for technology companies? And what is required to launch a successful crowdfunding campaign?

Proving legitimacy and demand

Obtaining financing from traditional lenders such as banks, angel investors, and venture capital firms can be difficult for some early-stage technology companies. Crowdfunding offers an additional source for raising capital. Many investors are eager to support innovative ideas or services, and the growing legitimacy among accredited investors to provide financial backing through the internet has contributed to the popularity of crowdfunding. For tech startups, crowdfunding is an effective way to demonstrate to lenders the demand for a product or service and also to justify the company’s financial projections. Technology companies that have successfully secured accredited investors via the web are especially attractive to traditional lenders as their ideas have reached a level of legitimacy and approval.

Testing the markets and building brand awareness

In addition to raising capital, crowdfunding provides a platform for technology entrepreneurs to test the success of their product or service once it is officially on the market. Through this process, an entrepreneur can determine whether to continue investing time and money in a particular product or service based on feedback from potential customers. Doing so avoids involvement in a venture that may ultimately prove to be futile. The exposure of a product or service through crowdfunding offers the ability to build brand awareness and develop a loyal community of customers right from the start. Developing a loyal following can generate word-of-mouth advertising that can boost a startup business to success.

Finding success

There is a commonality among crowdfunding success stories. Deals receiving funding typically have outside sponsors who advocate on behalf of the deal. These are usually prominent investors who are willing to put their names on the deal and endorse them personally. This signals to other investors that it is a quality opportunity. “This is not so different from the way investments have always been done,” said Steven Dresner, CEO of Dealflow. “In the past, one prominent venture capitalist would put a million dollars in a deal, and then the startup could use that as leverage to attract more VC money. Now it is just taking place in a whole new forum.”

What does the future of crowdfunding hold?

Notwithstanding its popularity within the technology industry, to date, equity crowdfunding may be best characterized as a “growing” source of capital formation available to private companies. Entrepreneurs continue to test the market in determining how best to utilize crowdfunding as an alternative strategy for obtaining financing, gaining exposure, validating their products or services, and ultimately, expanding their businesses. The influence of crowdfunding on the middle market sector has yet to be fully realized. However, crowdfunding is on track to not only transform how privately held companies raise capital and interact with investors, but to also influence how businesses formulate and implement their go-to-market strategies.

1 https://www.fundable.com/infographics/economic-value-crowdfunding
2 http://www.crowdnetic.com/reports/jan-2015-report


Alex Castelli, CPA, is a partner and CohnReznick’s Technology and Life Sciences Industry Practice Leader. He can be contacted at 703-744-6708 or alex.castelli@cohnreznick.com. To learn more about CohnReznick’s Technology Industry Practice, visit the company’s webpage and follow CohnReznick on Twitter @CR_TechInd.

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NVTC’s Greater Washington Technology CFO Awards ceremony is fast approaching! If you want to learn more about the event, which includes the region’s best and brightest tech professionals, check out our video below, created for us by g14media.

Last year’s awards were a blast and honored John Burton of Updata Partners with the Michael G. Devine Hall of Fame Award. Notable past honorees of the award include Steve Case and Ted Leonsis (pictured in the above video).

This year, the categories are:

  • Public Company CFO of the Year
  • Private Company CFO of the Year
  • Emerging Growth CFO of the Year (revenue less than $50 million)
  • Large Company CFO of the Year (revenue more than $1 billion)
  • Financier of the Year

Check back soon for a list of finalists, and register today!

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