Biotechnology Companies: Why Sage Intacct Is A Better Way To Manage Projects

The Project Accounting Module in Intacct 

To date, the costs of developing a new market-approved drug are pegged at about $2.6 billion. That's a phenomenal outlay, and biotechnology companies like yours understand the risks involved.

As a form of risk management, many companies are strengthening their portfolio of pharmaceutical projects by focusing on big disease killers such as cancer and various cognitive, autoimmune, and immunodeficiency diseases.

Each treatment project, however, comes with associated costs for R&D, product development, and marketing. If your company has licensing partners and investors, you'll want to demonstrate meticulous cost-tracking practices. This is where Sage Intacct comes in. Its revolutionary project accounting module lets you track every relevant cost that is related to the development of any new drug.

Monitoring Project Tasks And Resource Management

With Sage Intacct, you have a graphic resource management tool at your service. Track who has been assigned to particular projects and whether your scheduling process for holiday shifts and out-of-office vacancies are on track.

You can also assign workers to specific tasks according to their capabilities. More importantly, T&E report approvals can be added to each manager's dashboard.

Billing And Invoicing Capabilities

Sage Intacct lets you track indirect costs through billable and non-billable data. If desired, you can calculate the true extent of indirect expenses using indirect rates.

WithSage Intacct, you can share billable time-sheets and expense data with any important decision-maker in your company. You can also calibrate billing rates to your own specifications for each vendor or customer. Meanwhile, flexible invoicing options allow you to either consolidate invoices or generate multiple invoices for individual clients/vendors.

Most importantly, Intacct's automatic markup option allows you to accurately markup any billable transaction.

Real-time Cost Tracking For Investors

With Sage Intacct, you can share real-time data about projects, test results, clinical development phases, and other R&D costs with your investors. More relevantly, you can also share projected costs and project profitability margins. Knowledge of these figures provides some idea of each project's operational challenges and successes.

Investors are particularly interested in the ROI from clinical trials. This is because clinical trial expenses constitute a major expense in R&D budgets. With key metrics such as patient volunteer feedback, reach, and engagement, investors will be able to gauge how the drug development process is progressing. In Intacct, you can configure and customize metrics reporting to your specifications.

From key metrics, your investors can see how many of your (PCI) patient-centered initiatives are completed within a particular time frame and how successful your company has been in decreasing patient participation attrition rates. Other metrics such as the availability of a patient feedback rating system will also let your investors know how satisfied patient volunteers are with their clinical trial experience.

These metrics have become increasingly relevant, as competing biotech firms continue to increase their R&D budgets. In 2016, Bristol-Myers Squibb and AstraZeneca spent a little more than 25% of their revenue on R&D. Collectively, the top 10 pharmaceutical firms allocated more than $70 billion to R&D in 2016.

Dashboards For Managers

With specific dashboards, your project managers can immediately tell how profitable their projects are. With Sage Intacct, you'll have monthly sales and net income figures at your fingertips.

The dashboards provide information about revenue streams and real-time profits per project. Meanwhile, special graphs and reports allow you to determine whether project delivery costs and employee utilization levels are at their most optimal.

The Sales Management dashboard lets your sales team managers see how much warehouse space they have and what this produces in terms of monthly sales and gross profits. Managers also have access to matrix reporting (which shows operational and financial information by project and customer), KPI reporting, and complete project-to-cash lifecycle figures.

Access to the pertinent financial figures allows managers to move swiftly to mitigate inventory or cash flow challenges easily.

So, if you want to learn how you can create custom operational reports, create dashboards that display key project metrics, and perform multi-dimensional analysis of your operational trends, contact us. We'll be happy to help. Our goal is to neutralize the obstacles that take away from what you do best: producing the next generation of life-saving drugs that will impact millions of lives.

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