There were not many top value-added re-
sellers of accounting and ERP software that
managed to increase their revenues over the
past 12 months, but for the select few that
overcame the volatile economic climate, the
reasons behind it were rooted in such strategies as mergers, diversification of product
lines, and expansion into new markets.
To be sure, out of Accounting Today’s annual ranking of the 100 Top VARs (Aug. 16-
Sept. 12, 2010, page 24) only 16 companies
showed a revenue boost compared to the
prior year’s report. Moreover, the report noted a 23.6 percent drop in the revenue for top
reseller Tectura to $229.2 million, compared
to a year ago, while the bottom threshold for
the VAR 100 declined by 31 percent from the
prior year, to $2.5 million.
The revenue increases for the 16 VARs
ranged from several hundred thousand dollars to several million.
Columbus, Ohio-based Socius, which resells Dynamics GP and Sage MAS 90/200,
among others, recorded the largest year-on-year increase of the VAR 100 — a 58 percent
rise in revenue for fiscal 2009 to $19 million,
boosting it from No. 30 to No. 12 this year.
Socius’ revenue increase, and move in the
rankings, was due in large part to its acquisition of the ERP practice of cbiz Technologies,
the now-former ERP practice of accounting
firm consolidator cbiz. The acquisition expanded the firm’s client base outside the
Midwest and into California and Kansas City,
Mo., and added 20 new employees.
cbiz had provided hosting services to its
Microsoft ERP and service provider license
agreement clients. Through the acquisition,
Socius gained those service areas and is continuing to invest in building these new areas
of its business, according to managing partner Jeffrey Geisler.
“[Organizations] have begun to see the
value in having quick and easy visibility into
Killer VARs
A few select resellers are finding ways to thrive in tough times
BY SETH FINEBERG
inbrief
all areas of their business, as well as having
streamlined processes that will save them
time and costs. Our vendor partners have
also recognized this area of need and have
responded by making the ERP and CRM solutions that we implement easier to integrate,
not only with each other, but also with indus-try-specific solutions, proprietary systems,
and other business software solutions,” said
Geisler. “The effect of the economy and the
changes to the Microsoft partner network
have given us the desire and ability to develop
an industry-changing business model that
will facilitate partners working together in a
manner never before imagined.”
M&A, AND BEYOND
Another firm that grew through acquisition
was Thornhill, Ont.-based BAASS Business
Solutions Inc. The firm generated $7.82 million during fiscal 2009 and a No. 40 ranking on
the VAR 100, versus revenue of $5.58 million
and a rank of No. 66 for the previous year.
In April, BAASS acquired Mississauga,
Ont.-based Dynamics reseller ProfitPoint
Inc. It had previously absorbed S.Kopstick
Associates, a Dynamics NAV consultant in
Toronto, and Zafi Computers Inc.
“BAASS has continued to grow both in staff
size and install base,” said president Joseph
Arnone. “We foresee this merger and acqui-
sition stage being ever-present in the future.
We have also diversified our product line and
adopted a vertical market strategy within the
SMB and mid-market space.” He also pro-
jected that BAASS’s customer relationship
management business will show significant
growth this year. “The greatest impact we are
seeing in the market right now is in technol-
ogy to meet this communication manage-
ment demand,” he said. “CRM systems are
[finally] gaining greater market acceptance,
and their functionalities and breadth con-
tinue to spread across all functional units.”
Carrollton, Texas-based Dynamics reseller
Aztec Systems saw its revenue grow to $8.14
million in 2009, up from $7 million in the prior
year. Much like BAASS’s Arnone, Aztec chief
executive Andrew Levi also noted increased
CRM business, as well as interest in hosted
solutions, and does not expect that to change
in the future. “We are seeing a renewed inter-
est in front- and back-office automation as a
strategic component to business as our cli-
ents’ businesses improve. We are also seeing
a dramatic shift in interest in a cloud-deliv-
ered model for critical business systems,” he
said. “We are excited that managed solutions
have finally come into their own.”
Other firms saw revenue hikes due to a fo-
cus on their vertical offerings and expanding
into areas in which they have expertise.
FASB, IASB RELEASE NEW
LEASING STANDARD PROPOSALS
NORWALK, CONN. — The Financial Accounting Standards Board and the International
Accounting Standards Board have published their long-awaited joint proposals
for overhauling the accounting standards
for lease contracts.
The proposals are likely to have a
major impact on the way that airlines,
commercial and residential property landlords, and equipment rental companies
do business. The proposal would require
that all lease obligations be recorded on
the balance sheet at the present value of
the expected lease payment, along with
an asset representing the right to use
the leased asset, in what is sometimes
referred to as the “right-to-use model.”
The proposal does include an exception
for short-term leases, however.
There are some minor differences between the proposals released by the two
boards. Some are due to cross-references
to variations in other standards, such as
the impairment standards used by the
two boards.
SEC solicits comments on IFRS work plan
WASHINGTON, D.C.
The Securities and Exchange Commission
is asking the public for feedback on its plans
for incorporating International Financial Reporting Standards into the financial reporting
system for U.S. issuers.
In the first of two notices (Release Nos. 33-
9133), the SEC requested public comment
on behalf of the staff on three topics: U.S.
investors’ current knowledge of IFRS and
preparedness for incorporation of IFRS into
reporting for U.S. issuers; how investors edu-
cate themselves on changes in accounting
standards and the timeliness of such educa-
tion; and the extent of, logistics for, and esti-
mated time necessary to undertake changes
to improve investor understanding of IFRS.
In a second notice (Release Nos. 33-9134),
the SEC requested comment on three other
topics: issuers’ compliance with contractual
arrangements that require the use of U.S.
GAAP; issuers’ compliance with corporate
governance requirements; and the applica-
tion of certain legal standards tied to amounts
determined for reporting purposes.
The SEC has posted its current work plan
for the consideration of incorporating IFRS
into the U.S. financial reporting system on
its Web site, www.sec.gov, which also accepts
comments on the workplan. AT
PCAOB WANTS PUBLIC
DISCIPLINARY HEARINGS
WASHINGTON, D.C. — The acting chairman
of the Public Company Accounting Oversight Board, Daniel L. Goelzer, plans to
ask Congress to consider a change to the
Sarbanes-Oxley Act to allow the PCAOB’s
disciplinary hearings of accountants and
accounting firms, along with the related
proceedings, to be made public.
Goelzer has directed the PCAOB staff
to develop a proposal that will be sent
to Congress requesting the change. Currently, under Sarbanes-Oxley, disciplinary hearings and proceedings are kept
private, unless the PCAOB finds good
cause to make them public, and all the
parties concerned agree to open them to
the public. That rarely, if ever, happens.
Public disciplinary hearings would
conform to a long-standing practice at
the Securities and Exchange Commission
to provide public disciplinary hearings on
matters regarding auditors. However, under current law, firms and auditors litigating with the PCAOB have little incentive
to consent to public proceedings and can
prevent the proceedings from becoming public for long after the information
would be most relevant to investors,
other auditors, and interested parties.
