The cloud's big potential in finance
Digitalization and the automation of work processes have been key subjects within the finance business in recent years. The main idea is to automate tasks and workflows to increase efficiency.
Making your workflow digital increases your workforce's flexibility and lets entire groups, departments, and teams adapt to unforeseen situations like the recent COVID-19 crisis.
The automation of workflows is often a result of a wish to speed up a process, reduce errors, and gain a more flexible and efficient work process. Most CFOs implement digital tools to reduce the time used on repetitive but complex tasks, like the financial consolidation of a group, increasing data quality, and ensuring easy access to financial data.
You can choose to digitalize your workflows through several different digital tools and technologies. But one trend that is not going away is the cloud. Cloud technology is increasingly popular due to the flexible and efficient workflows it creates as a part of the IT infrastructure in the finance department.
Finance can lead the digital transformation toward cloud technology.
The well renowned consulting business, McKinsey Digital, estimated in 2016 that 86% of the retail sector's bookkeepers, accountants, and auditing activities have a technical potential to be automated. A number that has only increased and expanded to all industries. This does not mean that digital tools and computers will replace employees. On the contrary, implementing digital tools will allow you to channel time and resources more effectively. Take, for instance, financial consolidation. Financial controllers can focus on in-depth analyses instead of checking data for errors by digitalizing this process.
Incorporating cloud-based digital tools into workflows is not new within the finance business. Insights' Global Digital Transformation Survey Report from 2018 shows that the finance sector led the digital transformation compared to other sectors and industries, already then.
PwC Denmark reports similar results. From 2017 to 2019, there was a tremendous increase in finance departments using cloud computing. In 2017, only 34% of financial departments used cloud computing as a part of their digital infrastructure. In 2019 more than 50% are using cloud computing to store financial data, software, tools, and systems, and this number is set to increase to 85% in 2025. These figures do not stand alone, but they support a general trend toward cloud computing solutions.
Why workflow automation through cloud technology is the future
As mentioned above, we see a clear trend: More and more businesses choose to digitalize their finance function using digital tools built on cloud technology. In mid-May, we went to Accountex, and everywhere you looked, you would find an online software tool for simplifying and streamlining various heavy processes. The clear takeaway was that you need to start thinking digital in all your processes. And companies who have already transitioned to cloud technology solutions experience huge advantages such as:
- Easy accessibility and a high level of mobility
- Instant access to new updates and features
- Lowered costs
- No long-term binding periods
- High levels of security
Learn more about cloud-based finance software here: Read the Top 5 Reasons Why Cloud-based Financial Software is the future.
When looking at the benefits of cloud technology, it is no wonder that there is a massive potential for the finance sector to embrace this digital transformation. It is also understandable that finance departments are increasingly implementing cloud-based software. A smooth and efficient workflow is needed to keep deadlines within finance, and here, cloud-based software can be a great help. Work can be done anytime and anywhere as long as you have an internet connection.
The funny thing is that we use cloud-based software every day without even thinking about it. The apps on our phones like Spotify, Outlook mail, or the different social media apps are all cloud-based digital solutions. But it took a crisis for us to really realize the advantages of implementing cloud-based software into the IT infrastructure of our corporate groups.
Now, finance professionals must take learnings from the recent pandemic and implement them in their finance functions. If you have not gone digital with your finance department yet, you should consider what steps to start. Investing the time now can futureproof your finance function so that you are prepared when unforeseen circumstances arise.
Ready to see how easy it is the automate your consolidation workflow? Then book a demo with one of our experts today.
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Konsolidator is a Scandinavian SaaS company that delivers a 100 % cloud-based consolidation tool.