How cloud technology drives the finance function in 2022
It is not about getting rid of old technology and keeping up with the latest trends.
It is about taking advantage of the strategic value and edge in the marketplace that cloud technology can give you. Gone are the days that you must prepare huge lever arch files for your auditors – technology such as NetSuite allows you to issue a login to your accountants and for them to audit remotely.
The cloud has transformed the business landscape and for the accountancy side of business, that means huge changes. The flexibility, agility, and mobility that cloud storage and computing offer to business means that the way accounting services are now delivered must change - for the better! The COVID-19 pandemic has accelerated the need for organisations to be more agile and adaptable than ever. And Cloud Technology helps drive this.
What does the finance function look like now?
The perception of the finance function can be a ‘traditionalist’ team rather than innovative forward thinkers. Technology adoption often lags behind other corporate functions, such as marketing or human resources.
The CFOs are the ones who are playing a critical role however, in driving digital transformation as they navigate COVID-19 recovery. This does however, come with certain obstacles. Often there is a technology skill gap and internal resistance to change. You may hear of long-term team members arguing that ‘We didn’t need this technology to complete our work before, why change?’. It is important, however, that finance teams should begin preparing now for the finance function they will need in the future, or risk falling behind!
There are many great benefits of cloud computing for the finance team, including.
Streamlining Data Collection & Management
Enabling Agile Business Operations
Real Time Data Analysis
Live, Flexible Reporting
Solving business challenges with cloud tech
Before the cloud, the most you could reasonably hope for was accurate financial statements and reports. Now, with the cloud, you can access a treasure trove of data. This allows you to predict more accurately what will happen in the future, shape your strategy to fit, and improve daily decision making in real time.
Your finance team can find data patterns and trends, modelling future scenarios with machine learning and artificial intelligence. You can move quickly on projects because you have real-time data that provides evidence they will work.
Another huge business challenge which can be solved through cloud technology is cybersecurity
“In a 2019 Sage research report, cybersecurity concerns were cited as the number one challenge to digitalisation.
In two years, that wariness of cloud cybersecurity seems to have been replaced by positivity.
In a recent survey of 500 UK finance leaders, 49% of finance professionals who considered their organisation cloud-ready said improved cybersecurity was the leading benefit of new technology implementations.”
Typically, cloud technology solutions – if they are set up and configured correctly – can be a lot more secure than on-premises solutions. Cloud providers such as NetSuite, typically guarantee the safety and security of their platforms. They offer users more safety measures, including password protection, encryption and access limitations, based off user profiles.
How cloud tech can add value
As a CFO, if you want to make a business case to the rest of the company that you should be investing more in technology, you will need to connect business success with improved technology. Cost is the number one reason businesses are not investing in modern technologies, however, investing in the RIGHT technology will pay off majorly in the long term.
With the cloud, you can overcome financial arguments against digital transformation, as you can easily prove the value it provides. Cost is always a concern, especially if you are running a smaller company. However, to counter those concerns, your finance team must show shareholders the value of technology to the business. The challenge can often be convincing staff to make that ‘mental shift’ in their way of thinking – after this the cost can seem much less relevant.
The more you use cloud technology, the more you will expand the areas where the technology can bring value. You can measure the monetary impact of the decision making you’ve driven with data. You can also identify and validate your most valuable revenue streams and apply data to the processes.
Although the finance function has been far slower to embrace the cloud compared to other departments. Ultimately, it’s no longer a question of if organisations should move to the cloud – but when. CFOs need to rethink the role their finance function plays and take the reins in driving digital transformation in 2022.
If you’d like to find out more about what cloud technology can do for your business, please get in touch.