You is likely to be a CFO or in a management place at a small or medium-sized enterprise (SME).

In that case, you could have tried to handle the impression of the pandemic by adjusting your know-how technique.

On this article, we have a look at concerns that companies have round tech funding, the ability of the cloud, and the way each may also help your organization with monetary administration.

Right here’s what we cowl:

Holding again on tech spend vs reinvesting in IT

In line with IDC’s 2021 Cloud Pulse Survey, some companies tried to carry again on spending.

In actual fact, 18% of SMEs worldwide aimed to economize by turning off chosen IT companies, 16% negotiated pricing with distributors, and 15% halted new IT initiatives fully.

All fully comprehensible actions.

However maybe surprisingly, virtually 1 / 4 (23%) of world SMEs reinvested in IT.

As workplaces and shops closed throughout numerous lockdowns, you could have quickly invested in cloud know-how to help distant working and acquire provide chain efficiencies to fight sourcing points—one thing your finance group would have an enormous eye on.

Greater than half (60%) of SMEs say they deliberate to extend their IT budgets throughout 2022, with 32% considerably growing their cloud finances, and solely 5% planning to lower it.

If you happen to’re accountable for your corporation’ finance group and never spending cash on cloud know-how, you need to be.

Usually, cloud software program could be safer than desktop legacy options, as cloud suppliers ought to assure the security and safety of their platforms.

You profit from extra security measures, resembling password safety, encryption and entry limitations based mostly on person profiles.

You must also anticipate from cloud suppliers 24/7 monitoring and devoted cybersecurity groups that may quickly establish and reply to potential threats.

Legacy software program and the issues with handbook processes

It’s maybe straightforward for companies to carry again on funding in monetary administration enterprise software program—it entails work to search out the suitable cloud vendor, and budgets may dictate no person is eager on spending cash.

You wouldn’t blame a enterprise for having an ‘if it isn’t damaged, why repair it?’ perspective. Legacy software program can nonetheless carry out primary capabilities that finance groups require to take care of day-to-day operations, so it’s pure to stick with current techniques.

Nonetheless, outdated accounting software program can result in a mess of issues, resembling the next:

Inaccurate knowledge

With desktop legacy monetary administration software program, you lack actual time, up-to-date data for correct reporting. If you happen to’re nonetheless working with spreadsheets, you could have to manually key in knowledge—and it’s straightforward to make errors.

Inefficient processes

In addition to risking errors, handbook processes resembling retyping and rekeying knowledge from spreadsheet to spreadsheet take up a number of time.

That’s time higher spent on extra important enterprise actions, resembling technique and planning.

Misplaced knowledge

As your corporation grows, you’ll construct up a mass of paperwork and knowledge, which will probably be extremely difficult to maintain organised for those who’re nonetheless reliant on paper and on-premises storage.

As you develop, you might also be topic to elevated regulation, which calls for correct file protecting. If you find yourself changing into a public firm, which will current new challenges.

Poor visibility

If you happen to can’t actively see what’s occurring in your organization’s funds, it opens you to a world of ache when on the lookout for errors or methods to cease them earlier than they turn into a problem.

It’s additionally extra difficult than essential to establish developments and patterns and make correct monetary projections.

Why shifting to the cloud will assist the finance group

The extra you utilize cloud technology, the extra you’ll broaden areas the place the know-how can convey worth.

You possibly can measure the monetary impression of decision-making, figuring out and validating your most precious income streams.

You could have to steer the ship on the subject of getting worth out of knowledge, working with IT in shifting your corporation to the cloud and implementing applied sciences resembling automation, analytics and synthetic intelligence.

Nonetheless, the cloud means that you can arrange a foundational framework to your finance group to handle, measure and monetise knowledge as an asset.

Via working with cloud knowledge, your finance group can construct insights into new income streams, and help tech and finance to work collectively in enhancing efficiencies.

Might automation be essential to the way forward for your finance group?

Automation stops individuals from spending large chunks of time on repetitive and low-value tasks, costing your corporation hundreds of kilos every year—funds you can use for reinvestment.

As we already famous, the time you spend on handbook processing is time your corporation can’t spend on extra precious duties, resembling profitable new enterprise.

Cloud finance software can automate these boring and pesky accounting duties, crunch these numbers, produce studies, and supply precious analytics.

It’s not nearly eliminating previous know-how—it’s about profiting from the strategic worth and edge within the market that cloud know-how can provide you.

5 steps to maneuver to the cloud

Listed below are a couple of pointers if you wish to transfer your corporation to the cloud.

1. Develop a enterprise case

With the cloud, your finance group can turn into extra agile and sooner, gaining efficiencies by the time you save by eradicating time-intensive handbook duties.

2. Help IT in establishing the techniques

To extract worth from the cloud, it’ll be as much as you to evaluate industrial fashions, have a look at the dangers, recognise and account for worth, and apply controls and governance.

3. Plan and get strategic

Look at your monetary administration enterprise objectives and what is going to drive your use of the cloud.

Do you need to modernise your operations and undertake digital transformation?

4. Look at what cloud applied sciences will give you the results you want

Create a transparent roadmap for implementation. You’ll have to work carefully together with your individuals, who will drive the usage of new know-how.

With the tech in place, you’ll must work at measuring your progress and ask a couple of questions of your finance group:

  • How are you utilizing the cloud tech, and are you doing it proper?
  • How efficient are your new processes?
  • Are they resulting in the productiveness and effectivity enhancements you anticipate?
  • What outcomes do you see with the brand new know-how?
  • How are you going to get enterprise metrics to your meant objectives?

5. Talk the modifications together with your group

Protecting your finance group (and the broader enterprise) updated with the transfer to cloud software program is necessary. In spite of everything, they’ll be utilizing the brand new know-how, in order that they need to be clear on what’s taking place.

And get them concerned within the new methods of working—they’ll have the ability to help and provide precious day-to-day insights that can outcome within the transfer being a clean one.

Ultimate ideas: Advocate for the cloud and digital transformation

You and your finance group may have a important function within the digitalisation of the enterprise.

You could have a central half to play in a future the place you tie success together with your capability to extract worth from the immense quantity of knowledge out there to your corporation.

By growing your cloud knowledge capabilities, you can also make the suitable selections about what to put money into.

Make that connection between cloud tech and enterprise worth.

Advocate for digital transformation and elevate the function of your finance group.

Show the worth of the cloud and win your battles by making your corporation extra agile, ahead pondering and knowledge pushed.