By Simon Bull, Sales Operations & Business Development Manager at Aqilla
Finance teams haven’t always been at the forefront of digital transformation trends, not least because their heavily regulated environment can – to an extent – create understandable caution and slow the pace of technology change. For instance, finance teams will be familiar with storing their sensitive data on their office premises, keeping it under their own roof and control. As a result, software modernisation can get left behind thanks to an ‘if it ain’t broke, don’t fix it’ mentality that can inform the thinking of finance and IT professionals alike.
Yet, across the economy, the pressure created by lockdown to build more flexible and integrated tech strategies is rapidly growing, not least because of the need to work from home. In the case of many organisations, the transition to flexible, remote working was straightforward, albeit slightly turbulent, but the finance department may have found it more challenging to transition to the required standards of remote working.
In particular, digital transformation for finance teams increasingly means switching away from outdated in-house technology architectures and software products to flexible and more financially efficient cloud-based services. It’s an approach that offers a number of important potential advantages, and also some pitfalls to avoid:
- Cost Management: The cloud-based Software-as-a-Service (SaaS) approach that is the basis of many of today’s cloud computing businesses offers users the convenience of a monthly pay-as-you-go model. Instead of investing significant sums in one-off software purchases, for example, all users need to access cloud-based finance software services is a desktop computer, laptop or smart device and internet connectivity. In turn, this also saves money on the server hardware that has previously sat in the corner of the office, and it may no longer be needed at all. In selecting cloud-based finance software services, organisations should always compare pricing from several providers to make sure they are getting the most competitive deal.
- Stronger Security: The best cloud providers should have security at the top of their list of capabilities, and checking on their accreditations, policies and track record should always form part of any selection criteria. This should include areas such as data protection, backup services and their ability to deal with common security issues, such as ransomware.
- Service as Standard: ‘Service’ is a buzzword employed by many SaaS providers, but it’s something that shouldn’t be taken for granted. Done well, cloud-based customer support and service can deliver an outstanding experience where the provider really feels like an extension of the in-house IT Team. The best ways to assess the service capabilities of any cloud provider are to ask for references from existing customers, check online reviews and evaluate their Service Level Agreement (SLA) to understand the small print of any agreement.
- Built for purpose: one of the major plus points of adopting a cloud-based software service is that they are built for purpose, and many offer an amazing degree of bespoke capabilities enabling every organisation to tailor them to their precise needs. This is in contrast to traditional software solutions that can, in effect, force the user to work in a prescribed way that might not be suited to their circumstances or priorities..
Simon Bull
- Specialised Compliance: This is where the specialisation offered by many cloud software providers can be of particular benefit, and those serving the finance industry should have compliance at the heart of their product design. Even for the most niche requirements, there is often a software provider out there who is geared to meeting those needs.
- Better Performance: Today’s cloud-based finance software market offers a sophisticated range of options from simple entry-level functionality to powerful performance designed to fit the needs of even the biggest and most complex finance departments. Key features could include: extensive analysis, proper periodic management and business calendars, multi-currency, multilingual and multi-company operation, full VAT handling International coding, tax and language flexibility, automatic reconciliation / bank integration, built-in key performance measurement, advanced search, selection and drill-down, document and image scanning.
Without doubt, the future of finance will be one that is digitally transformed. Even before the pandemic, modernisation offered compelling arguments for change across the tech strategies of many finance teams. Lockdown has accelerated the pace of change because cloud-based finance software can help teams to adapt and capitalise on working from home to match the success digital transformation has brought to many other key business functions. To put it simply, Covid-19 has become a catalyst for a digital transformation in finance, particularly in moving finance and accounting software away from traditional on-premise solutions to built-for-cloud services.
