4 Benefits of Cloud Computing for Finance Teams

The rewards of cloud computing range from cost savings to greater flexibility to enhanced performance. Despite the benefits, however, many organizations still haven’t adopted this increasingly popular technology. 

According to Benchmarking the Accounting & Finance Function from Robert Half and Financial Executives Research Foundation, only 7 percent of U.S. companies rely on cloud-based or software-as-a-service (SaaS) applications as their primary financial system.

If you’re hesitant to make the move to the cloud, consider these four benefits of cloud computing.

1. Flexibility

With its ability to allow companies to store and manipulate data remotely, cloud computing offers unmatched flexibility, including for businesses with offices in multiple locations. Moreover, because these solutions are typically software-based, they can be deployed on any server.

An effective cloud-based solution supports all operating systems and does not require installation or administrator rights on the user side. It also ensures a high level of security for finance teams through SSL encryption.

2. Easy outsourcing

Companies relying on legacy systems must frequently upgrade their software and then retrain their employees on how to use the updated system. Firms using in-house solutions are also responsible for maintaining and troubleshooting their own system. All of this can be expensive and time-consuming.

Cloud computing, on the other hand, allows finance teams to outsource some or all of their IT architecture, operating platforms and software applications to a third-party web services host. As a result, finance teams using cloud-based systems generally are less reliant on IT, enjoy more efficient computing and experience increased productivity.

3. Cost savings

Affordability is often the main reason companies switch to cloud computing, as it typically costs less than maintaining an in-house system. Firms don’t have to pay for expensive hardware, upgrades or maintenance fees – they simply have to buy a subscription.

4. Stronger security

While some CFOs still have concerns about safety in the cloud, many industry experts say security is one of the primary benefits of cloud computing. Because cloud vendors must comply with strict standards and are subject to security audits, as noted by SAP's Lindsey LaManna, companies can experience increased security when using cloud solutions. 

What is your experience with cloud-based solutions for finance teams? Share your thoughts below.

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