According to Gartner, cloud investments are expected to top a whopping $482 billion this year, up from $313 billion in 2020.
To no surprise, this is due in part to the many disruptions experienced by companies as a result of the pandemic—the biggest being the massive shift to remote work which demands new ways of working. Finance and accounting professionals are experiencing unique challenges in a remote or hybrid work environment, such as maintaining appropriate visibility into and oversight of payments and payment information.
But what helped save the day and still continues to? Moving data and processes to the cloud. Using cloud-based software offers accounting departments a host of advantages over manual processes or on-premises solutions, including improving access to financial information, protecting sensitive financial information and helping organizations scale to capture new opportunities.
The Cloud Ensures Access to Financial Information Regardless of Location
Accounting has long been tethered to the office, dependent on manual, paper-based processes and desktop accounting systems for many of its core functions, from auditing to bookkeeping to financial management.
According to a 2021 report by The Association of Accountants and Financial Professionals in Business, when the pandemic hit, accountants struggled to access the information they needed to do their jobs, and companies who hadn’t automated began looking to cloud-based solutions to ensure survival.
Among other things, cloud technology can provide accountants the ability to help their organizations manage cash flow, continue processing payroll and paying bills, and ensure tax and regulatory reporting responsibilities are met.
With cloud solutions, finance teams can safely store financial data in a centralized, searchable database that they can access from anywhere—no matter if they are remote or in the office. Accountants can observe trends and identify early warning signs of potential problems, such as suppliers who are creating risk for the business.
The greater visibility also helps them spot opportunities for improvement so that they can help their organization shift direction to better manage cash flow, boost revenue and make more accurate projections.
Cloud-Hosted Solutions Elevate the Role of the Accountant and More
A 2021 whitepaper by Thompson Reuters shows that more than half (56%) of accountants find that technology increases their productivity while freeing them for more strategic work.
By eliminating time-intensive processes like data entry and providing better access, cloud-based accounting solutions provide accountants with more time to spend working on behalf of business owners and clients, serving as true advisors with time to strategize on how to make smarter investments, better forecast, and scale the business for the future.
Among other things, cloud technology can provide accountants the ability to help their organizations manage cash flow, continue processing payroll and paying bills, and ensure tax and regulatory reporting responsibilities are met.
Cloud Helps Protect Financial Data to Ensure Compliance and Security
Cybersecurity threats have rapidly increased over the last two years, as seen in numerous research reports, largely due to the security gaps remote work introduces. Employee laptops and personal networks often are not as secure as in-office networks, giving fraudsters easier access to sensitive data. Adding to the risk, documents like invoices can easily be lost or left unattended to when teams are scattered.
How will accounting and finance ensure the security of sensitive financial information and get access to it when they need it?
Encryption and around-the-clock monitoring and accessibility provided by cloud solutions adds an extra layer of security to protect against cybercrime. Having an automated, cloud-based process that fully integrates with existing accounting software can help tighten controls and reduce opportunities for human error or fraud.
Cloud solutions also can make it easier for teams to ensure compliance with regulatory and legal requirements. Advanced technology in such systems can monitor for regulatory changes and send alerts if red flags are noted, helping accountants stay on top of evolving regulations to keep their organizations safe and compliant.
Preparing for the Future of Work
While no one can predict exactly what the future of work will look like, it is likely that hybrid work environments are here to stay. Cloud-based solutions can empower organizations to provide the flexibility remote work requires while helping teams work smarter and more efficiently.
Cloud transformation also provides the accounting and finance team with peace of mind that they have the right technology in place to operate with resiliency and readiness for the future. And that is what is giving them a competitive advantage like no other.
Joseph Fox is Chief Product Officer for AvidXchange, where he is responsible for product strategy and leading the products organization and uses his extensive experience to bring innovation to existing and future AvidXchange products. His specific focus, and that of his team, is to develop Software as a Service (SaaS), value-based business software solutions for our customers.
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