Top 10 reasons you should move your finance software to the cloud
Research shows that most businesses plan to move their finance system to the cloud at some point. Read on to find a useful comparison between cloud-based financial management software, and on-premise financial solutions. This should help you to decide whether to make the move.
In today’s fast-moving world, any new software you implement should facilitate growth, improve general performance, and optimise processes. It should help you to adapt quickly during tumultuous times of unexpected change.
Chief Financial Officers (CFOs) in particular, need technology that will digitally transform their business, and put their finances in sync with the rest of their operations. Reliance on legacy systems and rigid data structures only serves to hinder this evolution (which in turn will negatively impact performance).
Many turn to financial planning and analysis (FP&A) software (which is cloud-based), as it integrates with other business systems, and is delivered on a subscription basis.
Cloud solutions put finance teams in the driver’s seat
Gartner predicts that the cloud will become the dominant deployment model across all areas of financial management applications by 2025. 72 percent of organisations have plans to leverage the cloud for financial applications in the next three years (according to ‘Finance Moving to the Cloud: The Steps to Take and the Benefits You Can Expect’).
Gartner VP Analyst, John Van Decker, says: “Gartner found that cloud solutions are easier to implement, require no major upgrades and offer functionality on par with on-premise solutions, which will soon be surpassed. Perhaps most importantly, cloud solutions put finance, not IT, in the driver’s seat, which will become an increasingly important differentiator as finance develops artificial intelligence (AI) strategies.”
Our Annual Trends Survey showed that 60 percent of UK business professionals are seeing cloud services supporting their work. Cloud adoption, and the use of AI (and business intelligence) was flagged by a third of respondents as areas they’d like to see impact their daily working life.
On-premise vs cloud-based financial software
Traditional on-premise financial applications are part of a sprawling hardware-based infrastructure, which has high ongoing costs for maintenance and upgrades. On-premise systems create silos in departments, data and systems. Also, you can’t integrate intelligent technologies like AI and machine learning (ML) into core processes.
With a cloud-based finance system, the software and data are hosted on a remote server, providing capabilities on a subscription-basis (also known as SaaS). The best cloud-based financial software covers all the essentials you need to drive the core of your organisation (such as accounts receivable, accounts payable, general ledger, assets and procurement). And there are many other additional advantages to adopting such a solution.
10 reasons to switch to a cloud-based financial system
- Cloud applications have intuitive, user-friendly interfaces that unify experiences across all aspects of the system, and increase employee engagement.
- They enable remote accessibility, anytime, anywhere, from any device. This improves self-sufficiency and employee empowerment.
- Cloud systems eliminate silos within and across departments, by aligning data, systems and processes.
- Cloud-based financial software can seamlessly blend finance with business data, as all organisational data is held within a single source of the truth.
- This access to real-time data enables more accurate, actionable insight, which increases data visibility (to improve forecasting and decision making).
- Powerful reporting capabilities help with internal, statutory and regulatory compliance.
- Cloud solutions deliver a lower total cost of ownership than on-premise.
- It offers potentially unlimited storage, and helps reach optimal performance.
- It is also super agile, meaning there is unlimited scope to add new technologies (like AI and ML).
- Cloud-based software has matured too. Fewer CFOs are concerned about the safety of the data they hold, because today’s systems have the highest levels of security and data protection.
What does cloud-based financial software mean for your business?
By migrating away from traditional technology, you are unshackling your business from rigid data structures and legacy processes. This means you no longer need to compromise, suffer complacency, or deal with underperformance.
With the right system, you can boost employee morale and organisational performance, by reducing admin, simplifying control, and improving the user experience.
Cloud software enables scaled growth, both in terms of volume and operational complexity, by removing bottlenecks and the costly impact of operational disruption. It enables ongoing optimisation by streamlining processes, aligning departments, improving decision-making and enhancing forecasting.
Choosing the right finance software for the future
The choice is not just about what’s right for your business now, but what’s right for your business in the future. Going forward, customer and stakeholder expectations will not abruptly drop. Markets will not suddenly stabilise. As technology adoption speeds up, digital transformation is not going away any time soon. And neither will your competitors.
While the solution for addressing all these challenges may be complex, one thing is clear, investing in the right software must form a vital part of your strategy.
If you’re in the manufacturing industry, check out our cloud-based Manufacturing Software, which is tailored for small to medium-sized manufacturers looking to grow. This solution unites all your business operations in one place, including your finances, sales and inventory control.
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