Sage Intacct allocations: making it simple

Sage Intacct Allocations streamlines the often complex and error-prone process of distributing expenses and revenues by automating allocation rules across departments, projects, and other business dimensions, resulting in greater accuracy, efficiency, and financial insight. By eliminating manual spreadsheets and repetitive data entry, organizations can accelerate month-end close, improve budgeting and forecasting, and gain a clearer view of profitability.

Monthly allocations are a key part of many businesses’ month-end close processes, but for many organizations, allocations are manual, time-consuming, and error-prone. Does your team spend hours importing and exporting spreadsheets, performing manual calculations, and duplicating data entry each month?

If so, there’s a more efficient way: Sage Intacct Allocations. The allocations function in Sage Intacct makes it easy to manage complex allocation tasks with accuracy. Whether you’re distributing shared expenses across departments or allocating revenue among projects, Sage Intacct Allocations is designed to speed up and simplify the process.

Read on to discover how you can accelerate your financial processes and move your business forward using Sage Intacct Allocations.

Want to see allocations in action? Watch the on-demand webinar— All Things Allocations in Sage Intacct

What are Sage Intacct allocations?

Sage Intacct Allocations is a powerful feature that allows you to distribute expenses, revenues, and investments across different business dimensions, such as departments, projects, funds, and entities. This capability is especially valuable for organizations that regularly need to distribute costs or revenues based on specific rules or criteria.

Allocations is fully automated within Sage Intacct, letting you allocate indirect costs, revenue contributions, assets, and liabilities across multiple dimensions and entities. This automation can save you days each month, increase the accuracy of your financials, and give you greater insight into performance — all with a comprehensive audit trail.

How do Sage Intacct allocations work?

Many organizations still manage allocations manually, relying on spreadsheets and manual formulas. This means gathering data from multiple sources, entering it by hand, and constantly updating formulas as business conditions change. This approach is not only time-consuming, but also carries a high risk of errors.

With Sage Intacct, you can define allocation rules using a variety of parameters. Choose to allocate costs or revenues based on set percentages, fixed amounts, or dynamic values like actual usage or headcount. Once you set the rules, Sage Intacct automates the allocation process, saving time and reducing risk of manual mistakes.

For example, if your organization incurs a shared expense, such as office rent, Sage Intacct can automatically allocate that cost to individual departments based on their square footage. This ensures each department only pays its fair share, supporting more accurate budgeting and financial planning.

Key benefits of Sage Intacct allocations

• Better accuracy: Automated allocations eliminate manual errors, resulting in more accurate financial statements and better decision-making.
• Time savings: By automating the allocation process, you free up valuable time to focus on strategic activities. Many organizations report a significantly faster month-end close.
• Improved financial visibility: Allocations provide a clearer, more detailed view of your cost and revenue distributions, supporting better financial performance analysis.
• Flexible allocation methods: Sage Intacct offers a range of allocation methods, allowing you to select the approach that fits your needs best.
• Better budgeting and forecasting: Accurate, automated allocations contribute to more reliable budgets and forecasts, so you can plan more effectively.

A typical use case — allocating marketing expenses

Imagine a company with several product lines and a centralized marketing department. Marketing costs need to be allocated to each product line based on the revenue each line generates.

With Sage Intacct Allocations, allocation rules can be set up to distribute marketing expenses in proportion to the sales revenue of each product line. This ensures each product line bears its fair share of costs, giving the company a true picture of profitability by line.

By using this feature, organizations ensure accurate financial reporting and gain valuable insight into which product lines are most profitable and which may need additional support.

Learn more

Sage Intacct Allocations is a robust tool for organizations with complex structures, but it’s also ideal for smaller businesses that need a simple way to allocate expenses and revenues. Automating allocations increases accuracy, efficiency, and visibility into your financial performance. Rand Group can help you make the most of this feature.

Next steps

Whether your organization is just starting to explore Sage Intacct or you’re looking to optimize your use of allocations, Rand Group can help. Our team of experienced consultants can guide you in configuring, automating, and streamlining allocations to fit your unique business needs.

Ready to simplify your month-end close and improve financial accuracy? Contact Rand Group today to learn more about Sage Intacct Allocations, request a personalized demo, or discuss your current financial processes. Visit our Insights hub for more expert advice and best practices on financial management and technology solutions.