Last editedMay 20222 min read
The value of the cloud has become so apparent that the majority of IT budgets are now being spent on cloud-based solutions, cloud finance included. Most modern finance teams are now armed with powerful cloud solutions to help them manage their company’s finances. All aspects of a firm’s finances can be managed this way, from payments and payroll to budgeting and forecasting– and since everything is online, the software can be accessed from anywhere, at any time. In this post, we’ll explore exactly what cloud based accounting systems are, and the benefits they can bring for your business.
What is cloud finance?
Cloud financial software comprises SaaS (software-as-a-service) tools that companies can use to replace their traditional, onsite financial management tools. It helps companies keep track of expenses, sales, purchases and assets. It can take the form of a single system, for example an ERP (enterprise resource planning system) that allows a business to take care of the entire financial process, or it can be a collection of cloud financial systems that interact with each other.
The main difference between on-premises and cloud based accounting is that in the cloud, software and apps are run by a cloud service provider, so the business doesn’t have to manage its own servers or other physical assets. The aim of cloud financial systems is to give companies a 360 degree view of the company finances, whilstautomating processes to boost efficiencies.
The finance cloud should be able to handle:
When should you move to the finance cloud?
The best time to make the move to the cloud is when a company is growing and needs to access infrastructure that will scale with the business.
If you’re experiencing the following problems, it’s probably time to say goodbye to disconnected financial systems and switch to cloud based accounting:
When the finance team seem to spend most of their time switching from one system to another
When inconsistencies keep arising in your financial data
When you lack visibility and insights into your financial data
When you’re spending excess money on different systems
Benefits of cloud financial systems
Here are some of the main benefits of cloud based accounting
Cost-effective: Cloud financial software is relatively affordable when compared to onsite ERP systems. Since the software runs in the cloud, there are no maintenance costs and you can budget for future expenses based on usage, helping you to manage cash flow.
Immediate upgrades: Unlike with on-premises systems upgrades can be installed immediately, and they often happen automatically, with no need for any manual intervention.
Options to integrate with other systems: You can connect cloud financial systems and allow them to share information with each other. For example you can integrate financial cloud software with a payment processor like GoCardless. GoCardless provides customers with an efficient and cost-effective way to collect payments, and integrates directly with leading financial cloud software including Xero and QuickBooks.
Mobile access: Data can be accessed while on the go, via a mobile device with an internet connection.
Scalability: By migrating to a cloud finance system it’s easier to scale up resources according to levels of demand, with no need to create new infrastructure.
Streamlined data management: By consolidating your financial management software, you can eliminate inaccuracies and duplication and make auditing more straightforward.
Manual systems like spreadsheets and emails, or disconnected software, can slow you down, with employees having to take on endless repetitive tasks. Inaccuracies and limited availability are major drawbacks of traditional accounting systems. Switching to cloud based accounting and connecting all your systems makes data accessible in the cloud and ensures that financial processes will run more smoothly.
We can help
GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.