In the current context, many companies are trying to optimize their business processes by using advanced digital technologies. One of the popular ways to enhance the efficiency of a business is to use cloud-based solutions. In the framework of this review, we’ll discuss the transfer of financial software to the cloud, its benefits, and tips on cloud financial product development.
Benefits of Cloud Financial Software
Replacing conventional server-based software with a modern cloud-based version has some undeniable advantages. It results in improving the effectiveness and speed of employees’ cooperation and getting instant access to important data from anywhere in the world. Let’s have a closer look at the benefits offered by cloud-based financial business software.
Automatization of Routine Manual Processes
Implementation of cloud-based financial software helps automate some routine working processes of the financial department. This, in turn, improves the overall efficiency of the department and allows its employees to collaborate closely with the rest of the team. Additionally, you may consider payment gateway integration to process payments automatically.
Higher Accuracy of Data, No Duplicate Records
When financial data is processed manually, occasional mistakes caused by the human factor are inevitable. Also, the process is time-consuming and very expensive. Cloud-based solutions, in turn, help avoid human mistakes and allow employees to track the documents for duplicates.
Strict Hierarchy
A distinctive feature of the financial sector is that unauthorized access to the inner data can result in major troubles for the whole company. Modern SaaS financial solutions let create a strict hierarchy where each employee gets access to the piece of information he/she needs for work, no more. All the rest information is reliably protected.
High Level of Security
When it comes to finances, security is a matter of prime concern. Cloud-based software solutions are known for compliance with the highest security standards. Additionally, there are special programs for fast backup and recovery, which can be implemented together with the SaaS system itself.
24/7 Availability
Unlike server-based systems, cloud-based software can be accessed at any moment from anywhere via a usual web-browser. All you need is Internet access. All the changes are also displayed instantly.
Types of Cloud Storages: What to Choose
Cloud storages do not come equal. Basically, there are three main types of clouds: public, private, and hybrid ones. Each type has its own pros and cons.
- Public clouds are known for their excellent scalability. They don’t require much time for the deployment. On the minus side, they are more vulnerable to hacker attacks and there can be problems with their productivity.
- Private clouds are created from scratch in full compliance with the company’s needs. They are very secure but less scalable than public options. Also, they are sort of pricey, and their development needs more time.
- Hybrid clouds combine the features of several popular options. They can be managed both internally and externally. However, they are quite expensive.
So, what type of cloud storage should you choose? Smaller companies can benefit from public cloud storage, while large-scale entities can opt for private or hybrid solutions.
Tips on Cloud Financial Software Development
Developing cloud-based financial software is a complicated and time-consuming process. While every project is developed according to the company’s specifics, there are some general things to consider. Here are three basic tips for everyone to follow.
Security is Crucial
The importance of 100% reliable protection is hard to overestimate. Those who’ve been hacked at least once in their life understand it pretty well. This is especially true for the financial department where unauthorized access to internal information can become a real disaster. To prevent this disaster you must do your best to provide the highest security level. Make sure you have all the required security certificate. Use advanced encryption methods. Finally, use multi-step authentication and make sure nobody can access the software without entering a login and a password.
Think of Positive User Experience
Usability is another important aspect to consider. User experience is affected by the user interface (UI) greatly. Make sure your cloud-based platform has an intuitive interface. It must be convenient and easy to use. There also should be no problem with upgrading. Ideally, the software should function both offline and online.
Arrange the Information in a Convenient Way
Irrespective of the company’s profile, its financial department always deals with numerous transactions and reports – losses, expenses, revenues, balance sheets, etc. When implementing cloud-based financial software, your task is to arrange this data wisely. Make sure each employee has access to the piece of information he needs for his work.
Check the Location of Data Centers
Cloud providers may be located anywhere. However, usually, they have more than one data center just to be able to restore the data in the case of a disaster. Make sure these data centers are located in the regions where the probability of disasters is minimal. Also, check whether your agreement with a provider determines the availability of services and uptime.
Basic and Additional Features of Cloud Financial Software
The feature set of a cloud-based platform can vary depending on the business profile. Commonly, essential features include the following:
- a Ledger;
- accounts receivable/payable;
- expense management;
- order management;
- cash management;
- analytic tools.
As for the additional features, they vary significantly from one company to another. For example, they can include the following ones:
- multi-currency;
- sales tax management;
- project accounting;
- global consolidations.
It’s for you to decide when and what kind of cloud solution to implement to manage your finances more effectively. But, in any case, its implementation is worthy of consideration, as this is a real way to save your time and money.
