8 April 2024
What are Cloud Financial Systems and do I need one?
There are loads of reasons to embrace the cloud for your finance function. What is it, and why should you care?
With only a few exceptions, technology is moving into the cloud, and your finance function is no exception to this trend. There are a lot of reasons for this, which this blog will explore in more detail, but the most important is that investing in technology helps organizations to adapt and thrive to changes in the market.
There have been a huge number of changes in the past few years, so you can see why orgs want solutions that can be relied upon.
Crucially, cloud financial management software ensures you can inform your team about what’s happening financially, optimize your profitability, and operate at a cost-effective scale.
Let’s unpack what that means.
Benefits of Cloud Financial Systems
One of the biggest is the cost savings you can make in your organization comes from reducing and refining your infrastructure costs. In IT, cloud computing is one of the best tools you have. This is because cloud financial management software doesn’t require expensive and hard to maintain servers and updating them can be done remotely with a lot less trouble.
Cloud computing also has improved scalability and flexibility, especially since you don’t need to adjust your hardware each time you make an upgrade. If your organization suddenly gets bigger or smaller, you can adjust your solution on the fly. This makes it a particularly useful option for organizations that are looking to grow, especially startups, but they can add value to any business of any size.
Cloud systems tend to feature enhanced data security and privacy. Updates to patch vulnerabilities can be rolled out much quicker, meaning you’re less likely to be caught out by cybercriminals.
Key Features of Cloud Financial Systems
There are three key features you should make sure your cloud financial system accounts for.
Real-time financial reporting and analytics is one of them. This ensures that you get rid of data silos and eliminates the risk of double entry, as all your data stays in real-time. No matter where your finance team are based or how they like to work, they’ll all be working with the same data set, massively increasing efficiencies across the board.
One of the biggest day-to-day annoyances that finance departments deal with is expense management and invoicing. With improvements to technology, these processes can be automated, which will also help streamline budgeting and forecasting processes.
Choosing the Right Cloud Financial System
There are many different cloud financial management software solutions to choose from, so choosing the right one is a matter of figuring out what you need both in the short term and the long term. Will your solution scale with you? Does it offer the stability you need? How complicated will migration be, and does the provider offer support with this?
If you’re looking for a financial system that will smooth out the worst parts of the finance function and let your team focus on adding value, get in touch with our team.
