Zest AI becomes ASC 606 compatible and saves 60% costs through financial automation with Sage Intacct


GlobeNewswire
2021-03-17

The machine learning pioneer is successfully switching to SaaS financial management and Adopts new accounting standard while scaling finances at 100% growth

ATLANTA, March 17, 2021 (GLOBE NEWSWIRE) – way (FTSE: SGE), the leader in cloud business management solutions, announced today that Zest AI recently updated on Sage intact for central finance and earnings management. Switching from the original accounting software and transforming financial processes with Sage Intacct ensures timely, accurate financial data in all of its eleven business units. The company shortened its monthly close process by 33 percent, reduced annual accounting costs by 60 percent, adopted ASC 606 practices, and supported due diligence on its $ 15 million raise of capital – all while growing by 100 % year on year.

Zest AI, currently one of the fastest growing fintech software companies, was founded in 2009 with a mission to provide fair and transparent credit to everyone. Lenders using its software make better decisions and better loans – increasing sales, reducing risk, and automating regulatory compliance. To support the switch to something new ASC 606 accounting standards for the revenue recognition required for its new subscription model and for more robust reporting, Zest AI migrated to Sage Intacct.

“We saw a great opportunity to roll out scalable processes, financial controls and the right software from the ground up to make us more productive in the future,” said Walter Luceno, director of accounting at Zest AI. “With Sage Intacct, we now have accurate, real-time financial data in any management format we want, so everyone has more confidence in the numbers.”

By modernizing its multi-entity finance processes, Zest AI has been able to scale without the need for additional finance staff, even as revenue doubled. Sage Intacct created significant business value during this trip including:

  • Enabling ASC 606 compliance and providing flexibility for SaaS contracts: As we continue to develop Zest AI’s new products and pricing, Sage Intacct has enabled the finance team to Subscription billing best practices. “Sage Intacct’s capabilities are granular enough to support increasingly complex arrangements such as usage-based billing, while also helping us standardize contracts and keep track of all of our different schedules to generate customer invoices faster,” said Brandon George , Director of Accounting at Zest KI.
  • Shortening the monthly closing by 33% and reducing costs by 60%: The team used Sage Intacct to revise their monthly closing process and establish a single chart of accounts for all business units. By replacing time-consuming Excel-based revenue recognition plans with automated workflows and eliminating manual reporting, Zest AI reduced its reliance on an outside vendor for its monthly closing process – savings that exceeded the annual cost of Sage Intacct.
  • Optimizing accounting workflows through first-class integrations: After integrating Sage Intacct with systems like Bill.com, Expensify, Paylocity and Brex, Zest AI has a single financial system that flows seamlessly through the company. “As a direct result of our integrated software solutions, we can divert our time from accounting maintenance to strategic projects,” said Luceno.
  • Providing effortless visibility to aid in due diligence for a $ 15 million raise in capital: During last year’s funding round Sage Intacct reporting capabilities helped the Zest AI finance team conduct intensive due diligence deep dives and track key SaaS metrics. They were able to quickly answer all of the auditor’s questions and easily provide any additional analysis required. The system’s statistical accounts help them calculate ongoing performance metrics that investors need, such as Annual Recurring Revenue (ARR) and Customer Lifetime Value.

“The flexible dimensions of the system for marking transactions with departments, suppliers and customers have completely changed our reporting,” says Luceno. “Sage Intacct also allows us to speak with authority about margins and expenses, which helps our CEO and other executives make important decisions for the company quickly.”

For more information on how Zest AI benefits from the Sage Intacct financial management solution, please visit Read the full case study here.

Media contact:
Peter Olson
[email protected]
408-878-0951

About sage
Sage is the global leader in technology that provides small and medium-sized businesses with transparency, flexibility, and efficiency for managing finances, operations, and people. Together with our partners, millions of customers worldwide trust Sage to provide the best cloud technology and support. Our vast experience means that our colleagues and partners understand how to serve our customers and communities in good and challenging times. We’re here to help with practical advice, solutions, expertise, and insights. To learn more, visit www.sageintacct.com or www.sage.com/en-us/.


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