8 benefits of using cloud-based tools for finance operations

Cloud technology continues to transform many aspects of society, including business functions such as finance operations. A company’s finance operations may be especially well suited to cloud-based solutions, because flexibility, cost containment, and efficiency are all critical for finance teams.

How can a company move parts of its finance operations to the cloud? And how can cloud-based tools streamline the different processes in finance operations? We tackle these questions below.

How can you move finance operations to the cloud?

While “migrating to the cloud” might sound daunting, cloud-based solutions are readily available and relatively easy to implement. Cloud-based software platforms are becoming increasingly popular, and they’re generally offered on a software as a service (SaaS) model with subscription-based pricing.

By turning to cloud-based tools for finance operations, you also move away from software installed on your on-premises server. This frees your company from purchasing software upgrades. As we discuss below, your finance team isn’t compromising security. Cloud-based technology has proven to be just as secure as (if not more secure than) on-premises software.

Benefits of cloud-based tools for finance operations

Cloud-based tools give a company’s finance team some distinct advantages. The most prominent benefits follow.

1. Better collaboration

With cloud-based workflows, members of the finance team and the entire company can collaborate with greater ease. Employees can access and share documents on the cloud platform. The request-and-approval processes so common in finance operations can also proceed in the cloud, with employees completing steps from any location. As a result, processes that were once convoluted and drawn out, such as vendor approvals and capital expenditure requests, can be handled more efficiently.

2. Automation

Automation is one of the best aspects of cloud-based tools. When your finance team moves away from manual processes, such as Excel spreadsheets and paper-based tools, the entire finance function can take a big step forward. Combined with the collaboration that cloud computing enables, automation can make even the most time-consuming processes run smoothly. Consider the number of repetitive administrative tasks common to many finance functions, such as accounts receivable and travel-and-entertainment reimbursements. When these areas are automated, the finance team can focus on big-picture goals and strategies. For ideas on where to start, read about seven finance processes that should be automated.

3. Greater accuracy and efficiency

With increased collaboration and automation, the efficiency of your finance processes will naturally increase as well. Another upside is increased accuracy, which is of paramount importance for finance teams dealing directly with monetary sums. Automated workflows can minimize or even eliminate human errors from duplication or miscalculation.

Just as importantly, an automated process can ensure compliance with internal controls. If a request needs to be elevated to a higher level for approval, or approvers need reminders about pending requests, the cloud-based platform can perform those functions automatically. This is another case of cloud technology increasing accuracy and efficiency without the tradeoff between the two that is so common in manual workflows and server-based software.

4. Reduced IT spend and other technology costs

Using cloud-based software for the finance function can significantly reduce the burden on a company’s IT department. With cloud-based tools, the SaaS vendor takes responsibility for the platform’s maintenance. Your IT team is no longer responsible for software upgrades and patches, and the company doesn’t need to budget for them. Given the constant pressure on finance teams to rein in costs, this is a welcome development.

5. Remote access

The COVID pandemic has accelerated a trend toward increased remote work. Cloud-based platforms are ideally suited to this environment, because finance teams can now be geographically dispersed and still perform their functions. Remote access can be even more effective when team members can use various devices, such as mobile phones. In short, cloud technology gives finance teams more flexibility in where and how they work.

6. Improved security

Those resistant to using cloud-based tools for finance operations often perceive the cloud as less secure than on-premises software options. In reality, cloud platforms are generally every bit as secure as server-based software, and in some cases more so.

A Gartner report(opens in a new tab) found that cloud providers’ security is generally equivalent or superior to that of on-premises data centers. Cloud-based solutions can include strong security features, such as data encryption and two-factor authentication, that traditional software often lacks. Automation on cloud platforms adds another advantage by reducing the potential for human error, which is often the cause of cybersecurity attacks.

7. Increased scalability

Another benefit of cloud-based solutions is greater scalability for finance teams. Cloud technology enables the finance team to upgrade storage capacity or add users quickly. The ability to scale rapidly at a low cost helps the finance department direct resources where they’re needed most, maximizing the company’s bottom line.

8. Higher transparency

The cloud also enables higher transparency in finance processes. The reporting in cloud-based solutions provides real-time visibility into different facets of your finance operations. Cloud-based automation also generates audit trails, which give immediate visibility into the status of any individual request or approval.

Looking into cloud-based solutions for your finance team

When searching for cloud-based solutions for your finance team, keep in mind that you can make the move gradually. Instead of shifting everything to the cloud at once, you can start with one or a few aspects, such as invoice approvals or journal entries. Most importantly, make sure your solutions offer all the benefits listed above, so your finance team can get the full value of modern cloud technology.

Nutrient Workflow Automation brings these benefits to finance operations, from approvals to audit trails. Explore finance workflow solutions, browse the finance workflow templates, download our essential financial operations automation guide, or contact Sales to see how it fits your finance team.