Let’s face it; cloud financial management is no longer a “nice-have” for businesses. Instead, it has transitioned into a “must-have” ever since the onset of the pandemic and remote work.
Cloud tools have become the essential foundation for how well a business can function. As a result, most IT budgets now revolve around a planning phase on budget allocations for all cloud solutions.
But what does this mean for a Finance team?
The modern-day Finance team of any business can seamlessly run operations from home if they’re armed with the right cloud software. Various tools can let them handle invoicing, expense management, budget preparation, and payments with a click of a button!
Without such tools that help bridge the physical gap of remote work, there is a huge communication gap between teams, leading to the wastage of time in fixing broken processes and erroneous reports.
How does a cloud finance system work?
A cloud finance system helps efficiently manage an organization’s financial planning on the cloud in layman’s terms. It arms a business with a wide range of connected financial tools that enable them to manage accounts, process payments seamlessly, create reports and manage budgets. Moreover, it allows for easy upload and download of data enabling seamless data movement in and out of systems.
When is the best time to switch to a cloud finance system?
If you plan to grow into a successful business, switching to a cloud finance system ensures your organization’s finances are future-proof as it lays out the foundation which helps you scale.
Here’s a checklist of problems that may indicate that its time for your business to make the switch to cloud financial management:
- Your financial data is erroneous/inconsistent
- Your processes are broken and risk financial leaks
- Your teams are weighed down by manual processes
- Your Finance teams have to enter the same information on multiple tools
- Your company has started business travel
- You lack visibility and control into expense management
- You need to give numerous people access to your financial data
Making the switch to a cloud financial management system
Remember that implementing a financial management system in a cloud environment isn’t all that different from an in-office setting. But the minor differences that do exist make the benefits exponential. As a business leader, you will need to plan out the following as you make the switch:
- Project responsibilities and timings
- Redefining the structure of key accounting workflows
- Ensuring proper migration of data between the old and new system
If planned and implemented correctly, these will help you efficiently simplify, streamline, and automate all your financial operations. Listed below are some of the biggest benefits seen after shifting to a cloud financial management system.
Benefits of a cloud financial system
By being offered on a subscription basis, cloud tools will let you eliminate vast investments of capital for hardware, software, and other accounting applications. Instead, you’d need to pay for access (storage too in some cases) and get pitch-perfect software in return, as opposed to in-office solutions where the cost is seen to go only in one direction: up.
Additionally, keep in mind that cloud financial solutions deliver higher ROI in real-time by providing you with a rigorous analysis of financial data while also providing your employees everything from enterprise-wide collaboration to mobile access.
All this and more will put your business on the path to offering more value to your customers. Cloud tools help you scale, not shrink.
- Automatic updates
Unlike an in-office system, you never have to worry about updating your accounting software or requesting the same. All updates happen in real-time by themselves, without any need for manual intervention.
- Enhanced customer experience
Cloud services have become the pinnacle of customer experience. CFOs and Finance managers within the company have started to recognize the immense benefits of Finance employees working on the same platform at the same time and viewing the same information. This ensures that no other team ever needs to be brought “up to speed” but instead has access to the same data as their teammates.
Additionally, it ensures that when a customer raises a request, anyone from an accountant to a seller can resolve the issue by viewing the same customer data.
Finally, a cloud finance system lets you create a single database of customers, which you can then automate for recurring payments like billing, managing revenue, and other core processes. This could just be one of the most critical ways in ensuring that a customer sticks around for life.
- Useful integrations
If you use a REST API or a tool like Zapier, you can connect your cloud financial tools, ensuring that all information is shared within your range of software. This enables you to eliminate manual errors or double data entry.
How to choose the right cloud finance tool for your business?
A cloud financial management system should let you seamlessly manage your expenses, sales, assets, and purchases. Think of it like a single ERP system that enables you to take control of your entire financial process. It will also give you complete visibility into your financial status and analytical reports to help you solve current problems while also predicting future ones.
Listed below are some of the critical areas your cloud finance system should handle:
- Order purchasing
- Asset Management
- Expense Management
- Expense Reimbursement
- Capital Expenditure
Why should you switch to a cloud finance system?
The common and shared information between different teams and tools enables you as a business leader to make smarter decisions. On the other hand, manual methods like emails or spreadsheets often disconnect employees by providing them with incomplete information and zero visibility. In addition, having employees enter the same data in multiple places can lead to numerous manual errors.
By connecting all these systems, you make the information accessible in real-time to everyone, thereby ensuring everything your Finance department runs like a well-oiled machine.
If efficiency and accuracy are on your mind, then a cloud finance system is the way ahead.
A cloud finance system grows with your organization by accommodating your changing requirements as you scale. It’s present to help your Finance teams in those places where they need extra hands. Taking a load off their shoulders ensures that your financial operations continue to run smoothly.
As the world continues to work from home, what often decides the very successful nature of a business is its timely adoption and implementation of automated systems. So fret not, take the leap, and watch before your own eyes as your business reaps its benefits.