If you run an established business, you’ll be very familiar with financial management. It’s an umbrella term that covers a variety of ways to plan, organise and monitor your financial resources in order to achieve your business goals.
Cloud financial management is a powerful way to take these processes one step further. Using cloud-based software and technologies to do things like automated accounting and financial reporting, it’s possible to streamline and improve your financial processes and decision-making.
What is the difference between cloud-based and on-premise software?
On-premise software is installed and run on computers on your business premises. Traditionally, financial software has worked like this: You would purchase a one-off software licence, install it on your computers and take responsibility for upgrading to the next version when needed.
By contrast, cloud-based financial management software is delivered over the internet, meaning that there is nothing to install. The payment model is by subscription (often called Software as a Service or SaaS), and updates happen constantly and automatically. Because the system is online, it’s possible to log in from any device.
How does cloud financial management work?
Rather than simply replacing the old on-premise ways of doing things, the capabilities of cloud-based financial management mean you can take things one step further. So cloud financial management works by leveraging cloud-based software and infrastructure to streamline and improve the financial processes within your organisation.
Automation is a key feature of cloud-based financial systems like iplicit. By automating repetitive, manual processes like financial consolidation and reporting you can save hours or even days of staff time, reduce the risk of human error and free up your employees to focus on more strategic tasks.
Integration with other systems, such as your CRM system, payroll system or e-commerce platform is simple and secure with cloud-based financial management software. This means that you can streamline your activity without duplicating work across platforms, and have a single overview of all your financial transactions in one central place. Integration also supports the automation of tasks such as invoice creation and expense tracking.
Collaboration is made easier on cloud-based platforms. Multiple team members can work together on the same accounts and reports, with no danger of duplication.
Scalability of cloud-based solutions means that you can easily adapt your financial software as your organisation’s needs change over time. As the business grows, additional users, data storage, and features can be added without the need for major infrastructure investments.
Security is another strength of cloud financial management. Sensitive financial data is stored securely in the cloud, while robust data storage and backup mechanisms ensure data reliability and availability. Secure login credentials, including advanced authentication methods like multi-factor authentication are employed.
Is cloud financial management right for my organisation?
For most businesses, nonprofits and charities, cloud financial management has many advantages. In addition to the efficiencies outlined above, the subscription model favoured by cloud-based tools means that the software does not require substantial upfront investment. Cloud-based solutions are easy to implement and can scale to accommodate changes in your user base and data volume.