The benefits of cloud transformation in accounting
The benefits of cloud transformation in accounting
At present, all businesses are adapting to a digital context that is constantly innovating as a result of the fast-paced advancements in technology that have been more noticeable during and after a sudden pandemic. Among new computer words and terms such as digital transformation, cloud computing, and artificial intelligence (AI), the accounting industry is no exception to the wave of accelerated change and innovation.
This process has become a prominent catalyst for change in accounting and financial services, aiming to enhance operational efficiency and effectiveness. However, this transformation process requires a holistic shift in business operations and thus requires a thorough understanding of its challenges at companies.
This transformation goes beyond mere technology adoption. According to Feng Liu, Head of Cloud Engineering at BDO Lixar, it is rather a mindset shift about how you run a business on the cloud and how you leverage the capabilities at hand. Accountants, financial teams, including management, will need to adapt to new ways of managing financial data.
The time and investment required to migrate financial processes and data to the cloud can be substantial; therefore, receiving advisory in this process is essential to avoid affecting business continuity during the transition period. The cost of cloud services, including subscription fees and data migration charges, must be carefully managed to avoid unexpected expenses and ensure cost-effectiveness.
What is cloud transformation?
What is meant by cloud? It is a metaphor for a network of servers connected to the Internet, which allows accessing to information from any device only with access to the Internet. This transformation refers to the process of adopting technology solutions to modernize and optimize business practices. This involves shifting from traditional software and hardware to services that are hosted and managed in the cloud.This process has become a prominent catalyst for change in accounting and financial services, aiming to enhance operational efficiency and effectiveness. However, this transformation process requires a holistic shift in business operations and thus requires a thorough understanding of its challenges at companies.
The challenges: What to expect?
Cloud transformation in the accounting field, as in other professions, is not a one-and-done initiative, but rather a continuous automation process that involves re-evaluating and optimizing various aspects of the business operations model, security policies, and costs.This transformation goes beyond mere technology adoption. According to Feng Liu, Head of Cloud Engineering at BDO Lixar, it is rather a mindset shift about how you run a business on the cloud and how you leverage the capabilities at hand. Accountants, financial teams, including management, will need to adapt to new ways of managing financial data.
The time and investment required to migrate financial processes and data to the cloud can be substantial; therefore, receiving advisory in this process is essential to avoid affecting business continuity during the transition period. The cost of cloud services, including subscription fees and data migration charges, must be carefully managed to avoid unexpected expenses and ensure cost-effectiveness.
Medium- and long-term benefits
The accounting industry has evolved significantly in recent years, and one of the key drivers of this transformation is the adoption of cloud technology, providing numerous benefits, where the most important are:- Agile decision-making and view customization on different devices.
- Cost reduction in spaces to store documentation, avoiding the use of traditional servers.
- The contribution to the environment avoiding the use of paper, fighting deforestation and pollution.