How Cloud Technology Improves Financial Efficiency and Helps Business Success

Aberdeen suggests that enterprises follow the practices of excellent enterprises and actively adopt ERP cloud solutions. In severe business environments, by deploying ERP cloud solutions, enterprises can lay a strong foundation in data management, solve core challenges faced by financial teams, and improve business outcomes. In short, cloud users are more prepared in all aspects.

The current business environment is full of uncertainty, and financial teams often face enormous pressure to quickly provide critical financial and operational information. Many enterprises have finally withstood the test of the epidemic and are ready to show their strength. They soon face a series of new challenges, including supply chain disruptions, inflation, and rising energy costs. This has once again shrouded the enterprise in a cloud of uncertainty.

Basic challenges faced by the finance team

Many of the problems faced by the finance team are closely related to outdated basic data management processes. From the Aberdeen data (as shown in the figure below), it can be seen that the most common challenge mentioned by the surveyed companies is manual processes, followed by information accuracy. To obtain accurate and accurate real-time information, enterprises must eliminate manual processes.

Data source: Aberdeen

In addition, data is stored in a large number of dispersed systems, which is one of the key structural issues faced by enterprises. This can easily form data silos. In addition, the surveyed companies also mentioned automation issues. If financial settlement data cannot be obtained from non-financial/accounting personnel in a timely manner, it will ultimately lead to delays in reporting and summarizing intelligence.

How do excellent enterprises respond to these challenges?

The survey found that the customer service level of excellent enterprises is about 95%, which is more than 10 percentage points higher than the average of other enterprises. Their productivity and profitability have increased by 20.4% and 18.4% respectively compared to other enterprises. In these crucial business indicators for enterprises, excellent enterprises perform significantly better than other enterprises. We cannot help but wonder what measures these excellent enterprises have taken and what capabilities they possess.

An important investment initiative is the adoption of an ERP cloud system:

Cloud/Software as a Service (SaaS):

Excellent enterprises: 50% All other enterprises: 36%

Compared to other enterprises, excellent enterprises are 14% more likely to adopt ERP cloud solutions (with an adoption rate of 50% for excellent enterprises and 36% for other enterprises).

How can cloud solutions help businesses address the main challenges in the financial field?

By comparing enterprises that have deployed ERP cloud solutions with those that have not adopted cloud technology (Figure 2), we can determine which functions affect the speed, security, and degree of automation of data processing, thus solving some fundamental problems, such as adopting automated or manual processes; How to ensure the accuracy of data; And what impact can the interconnection between financial accounting departments and other data providers have.

Data source: Aberdeen

By automating the data import process through cloud solutions, enterprises can solve multiple problems at the same time, including eliminating manual data transfer processes, using automation technology to significantly reduce human errors, and accelerating the flow of information. Compared to non cloud users, cloud users are 43% more likely to adopt automated data import processes.

Secondly, the most crucial aspect of cloud solutions is to ensure the accuracy of the data used for decision-making. By compiling data and generating reports in multiple formats, as well as automatically importing data, enterprises can eliminate information delays and meet the needs of stakeholders in a timely manner. In addition, by updating financial indicators in real-time, enterprises can also provide accurate and up-to-date information to stakeholders in a timely manner to meet their needs.

Overall, cloud users have more efficient data management processes, laying a solid foundation for enterprises. This not only helps solve major challenges faced by financial accounting teams, but also significantly optimizes core KPls such as decision-making speed and financial statement accuracy. Enterprises can leverage cloud infrastructure for data management to innovate and help finance teams solve various specific problems, including data continuity, automation, data accuracy, and real-time data for optimizing decision-making processes.

This article "How Cloud Technology Improves Financial Efficiency and Helps Business Success" by AcloudEAR. We focus on business applications such as cloud ERP.

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