Enterprise cloud computing technology is nearing ubiquity – and for good reason. The estimated 96 percent of organizations worldwide that leverage the cloud, per research from RightScale, maintain more streamlined internal processes that mitigate costly inefficiencies and bolster employee activity. Some even use the cloud to enrich their customer experience, releasing sophisticated online products that meet marketplace demand, build brand loyalty and ultimately boost the bottom line. This is the reason businesses across the globe spent more than $62 billion on the cloud in 2018 and are expected to reinvest another $81 billion in 2019, according to analysts for the International Data Corporation. However, enterprise cloud technology, although often associated with transformative organizational change, can also catalyze smaller scale improvements that can deliver significant impact.
Cloud-based accounting software is an excellent example of the technology’s versatility. When deployed within a particular business function as part of an all-encompassing bookkeeping solution, cloud services give accountants the power to unlock new levels of efficiency and access new financial management capabilities. This is why more than 16 percent of U.S. companies have adopted cloud-based accounting tools, according to survey data from Software Connect. Of course, businesses leaders still on the fence about the cloud and its place in the enterprise might want more detail on the technology and the exact layout through which it improves the enterprise accounting processes.
Here are three of the operational advantages that come with accounting in the cloud and how those benefits translate to organizational growth:
The term automation often strikes fear within the hearts of accountants, many of whom consider artificial intelligence and machine learning as threats. While most technologists believe AI will transform accounting, virtually none are under the impression that it will eliminate accountants, Forbes contributor and IT analyst Jean Baptise argued. Instead, experts insist AI and its more common antecedents can assist accountants by taking care of repetitive tasks such as data entry. While most cloud-based accounting programs do not include AI, they do come equipped with ample process automation features that give financial stakeholders the opportunity to accelerate bookkeeping workflows. Some accountants are able to cut their data entry workloads in half with the assistance of cloud-based accounting tools, which can automate as much as 90 percent of client-based transactional activities post configuration, Accounting Today reported. With this extra time, accounting teams can tackle more important financial matters, including strategic planning initiatives that lay the groundwork for future success.
Modern businesses navigate an ever-changing, fast-moving marketplace dependent on the whims of unpredictable consumers and commercial entities. To find success, firms must cultivate institutional data flows that facilitate up-to-the-minute operational optimization. Accounting teams working with more traditional financial management resources struggle to capture the sort of nimbleness needed to operate effectively in the climate. After all, a human accountant can only work so fast. However, this ceases to be an issue with cloud-based accounting software, which can generate real-time reports that quickly deliver the financial insights decision-makers need to move in conjunction with the market. This obviously holds major implications for businesses, as those with access to such tools can find ways to generate revenue in any situation.
Business leaders are always searching for strategies that support organizational growth. However, even those that come across viable methodologies for expanding operations and reaching new markets encounter difficulties in the form of process-related growing pains. In many cases, accounting departments with particularly antiquated or ineffective workflows hamstring enterprises with opportunities for growth. Cloud-based accounting software, on the other hand, supports the kind of scalability companies intent on expansion need, per TechTarget. For instance, solutions with the automated features mentioned above make it easy for financial management stakeholders to take on more backend duties. With access to more robust components, including multi-entity management functionality, accounts can set up financials for new internal bodies with little trouble. This kind of elasticity makes it possible for companies to grow operationally and reach new heights.
Together, these features make cloud-based accounting software an essential for modern businesses looking for long-term success. Is your enterprise interested in embracing cloud accounting and unlocking the benefits mentioned above? Connect with The TM Group, who have been managing ERP implementations for decades, providing small to medium sized organizations with tailored services designed to help them find success today and in the future.
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