The way finance teams operate has changed dramatically. Not only have they shifted towards more remote ways of working and collaborating, but they are also under pressure to respond quickly to volatile economic conditions and evolving regulations. Those that are still using legacy financial systems are at a disadvantage.
A survey conducted by Sage found that among South African finance leaders, 73% reported that a disjointed finance and accounting system was a moderate or high concern. Meanwhile, nearly four in ten agreed that they lacked the systems they needed to work effectively when not in the office.
Against this backdrop, we can expect to see an accelerated move towards cloud-based finance and accounting systems in South Africa. With the shift towards software-as-a-service (SaaS) systems, financial leaders can offer easy-to-use platforms that democratise financial data and enable people to work securely and efficiently from nearly anywhere.
The cloud is changing the finance profession by offering financial platforms with unprecedented flexibility, ease of use and mobility. Here are a few of the significant benefits finance teams can achieve through migrating to cloud-based business solutions:
- Scalability
Cloud-based financial systems can grow along with your business. You can start small, then add more users or increase transaction volumes without performance or scalability issues.
- Streamlined data management
With a cloud-based system, finance teams can consolidate their information and ensure that everyone has access to the same consistent set of live data and transactions. This enables them to analyse and report in real-time, responding fast to a changing world.
- Remote work
One of the key benefits of a cloud-based system is that it is available to the distributed teams, whether at home or scattered across different offices. This enables finance departments to move towards sustainable remote or hybrid working models.
- Modularity
With cloud-based software, an organisation can easily add functionality as needed. For example, when a business grows, it can add modules such as budgeting and planning, global consolidation and inventory.
- Integrations with other cloud solutions
Modern SaaS finance solutions will offer simple, point-and-click integrations with a range of cloud-based business management, CRM, e-commerce, inventory management, payroll, or time & expense software. There’s no need for third-party integration, IT support, or custom consulting.
- Security
Half of the respondents in the Sage survey said cyber, and data security risk management is a significant challenge for finance teams. High performing cloud-based solutions are safe, secure and compliant with data privacy laws. They are designed to prevent unauthorised programs, systems, and users from gaining access or control of system processes, resources, and data.
- Process efficiencies
Cloud systems are live and offer real-time data outputs, speeding up financial processes like collections, consolidations, and close-off periods. Plus, cloud-based systems offer extensive automation and integration capabilities. For example, they eliminate productivity busters like manual data entry, paper-based processes, and spreadsheet maintenance.
- Simplicity and reliability
The finance department doesn’t need to worry about deploying, installing, upgrading, and patching the software with cloud-based finance solutions. This is all taken care of by the vendor. Plus, the software is deployed in a high-availability data centre, with the IT cost and risk assumed by the cloud vendor.
The move to cloud is accelerating as our research reveals that over nine in ten businesses intend to be using cloud-based financial systems within the next year. Cloud-based financial management solutions are a must because they’re designed to meet today’s business needs and adapt and scale only with a business cloud-based financial system.
By Gerhard Hartman, Vice President, Medium Business for Sage Africa & Middle East
