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The case for investing in the cloud

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18th Mar 2014
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Having the right IT infrastructure and business tools in place should be a huge priority for accountants, argues webexpenses chairman Michael Richards.

It goes without saying that during the recession, many companies have faced immense pressure to reduce their cost base.  Organisation infrastructure has often been a primary focus for potential cuts – particularly when it comes to the IT and business tools that support it.

However, with the news of an economic upturn it has never been more important for companies to review and invest in robust IT infrastructure and ensure they have the most up-to-date business systems at their disposal. By doing so, they’ll ensure they have a solid foundation from which to grow and move forward. This sentiment was echoed recently by Arcadia Founder, Sir Philip Green, who stated, “If you’re not investing in new technology you will be left behind.”

Accountancy firms and internal finance departments aren’t immune from this. Not only will investment in technology make vital business operations more streamlined and efficient, I believe it will create the necessary foundations for your organisation to evolve in the upturn by giving you better insights more quickly.

But where do you start when planning to implement more effective business tools across your organisation? What software is out there right now for finance teams to utilise?

The first step is to work collaboratively with the wider business to evaluate the business tools currently in place and to ascertain where changes are needed. A good place to start is by drawing up a list of the current software used in your organisation and then assessing if it is helping or hindering staff in their daily roles.

When reviewing the many business tools and software your organisation uses, remember that there aren’t any quick fixes or one-size-fits-all solutions out there. You’ll need to have a firm idea of what you want to achieve by implementing new software. For many finance teams the central goal will probably be to automate things like expenses and organisation transactions that will give them more time to concentrate on strategic matters like financial planning.

Presently, there is cloud-based accounting software available to suit smaller and medium sized organisations.  Their features include a full accounting system with automated daily bank feeds, invoicing, debtors, creditors, VAT and reporting.  These new tools have a strong emphasis on ease of use, automation and integration of all accounting activities.  And of course, being cloud-based, they are accessible from anywhere.

Along with webexpenses, these systems also present all data in real-time and from a number of different remote locations – great if there are multiple users. This ensures everyone sees the same version of the data and decreases the risk of discrepancies.  From a bookkeeper’s point of view, they provide greater remote liaison with clients, and allow them to do as much or as little as they require (eg producing sales invoices only when needed).

The ability to develop in-depth expense reports at the touch of a button is also a great weapon in the arsenal of modern finance teams, particularly when they are looking to streamline their organisation or have suspicions of expenses abuse. Sometimes it’s the small changes to the software and business tools you use that can make the biggest differences.

Cloud based accountancy software also has the ability to operate with policies and procedures companies already have in place – making the transition a lot easier. An example of this can be seen in a development of our own expenses platform which was designed to give policy reminders to staff as they submit expenses claims. So employees have no excuses for bending the rules.  It’s extra features like these that play a crucial part in curbing fraudulent claims and making sure organisation policy is upheld.

The flexibility that cloud gives to many software packages and business tools can have huge positives for finance teams and employees alike. For instance, some expenses management systems can now be used on tablet computers and smart phones, meaning that staff can simply take a photo of their receipts as and when they are obtained and upload them to a central database. This cuts down on the tedious process of tracking and storing receipts – and reduces time wasted on sorting and processing for employees and their finance teams.

When it comes to modern business technology, accountancy and expense management systems are just the tip of the iceberg. For instance, companies looking to improve their project management can now access tools such as Basecamp and Trello, the market leaders in supporting effective task management and business processes. Not only can these tools be used to great effect in all departments of a business, they can also help finance teams to plan, organise, and regulate resources on a daily basis. What’s more, they can produce data that is clear and concise, in order to support budget planning and cost control.

Training is another important part of a organisation which can benefit from the use of technology. As many know, training can be costly and hard to organise within many large organisations. My own organisation has benefitted greatly from a piece of software called Skillsoft. This online learning platform allows you to develop skills in everything from people management to finance administration cheaply and effectively.

The accounting profession in particular, has seen firsthand the challenges of the last few years on the bottom lines they manage. Putting cash away for a rainy day has been the priority for many organisations and has resulted in a reluctance to invest in the latest technology. A study carried out in 2013 by Coleman Parkes (The Changing Role of Accountancy, Oct 2013) showed that 41 percent of UK managers expressed frustration that their finance departments were too traditional in their ways of working.

With this in mind, finance teams need to see past their initial reluctance, step out of the shadows and start aiming for sustainable growth. One way of supporting this ambition is to invest in IT infrastructure that can compliment business process and encourage growth.

Whatever your business requirements, now really is the time to invest in ensuring your organisation has the business tools in place to maximize your chance of reaching your key strategic and operational goals.

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