Cutting a finance function from 1.3% to 0.3% of revenue

The expensive part of a finance function is rarely the software licence. It's what the wrong architecture forces you to spend around it.

$70K → $2K
Annual accounting system cost
1.3% → 0.3%
Total finance cost as % of revenue
$12M
Revenue at the time of the change

The situation

A $12M IT services company was running NetSuite as its accounting system, spending close to $70,000 a year on the accounting tool alone.

The business itself wasn't complicated. It transacted with a limited set of customers, and the transaction profile was straightforward. The system had been sized for a company this one wasn't.

What we changed

We moved the accounting to Zoho, at a cost of roughly $2,000, and assigned two people to handle accounting and consolidations under a finance leader.

  • Rebuilt the accounting on a system proportionate to the actual transaction volume
  • Kept consolidation handled properly rather than losing it in the downgrade
  • Staffed the function deliberately — two people plus finance leadership, not an open-ended team

The result

Taken together — people, the finance leader, technology and the outsourced team — the total cost of the finance function fell from 1.3% of revenue to 0.3% of revenue.

The point isn't that NetSuite is bad, or that cheaper software is better. It's that the stack should be sized to the business you actually are. Getting that judgement right changed the entire cost base of the function, not just a licence line.

Other things we've built.

Have a problem that looks like this?

Most finance problems are architecture problems wearing a different hat. Tell us what's breaking and we'll tell you what we'd do.

Talk to Us