Finance finds its way to the cloud
13 Dec 2017
- Financial tools make up one-third of new cloud enterprise resource planning installations
- Momentum highest in manufacturing and wholesaling
Pure cloud-based financial management solutions are being adopted by mid-to-large sized businesses at a higher rate than many predicted, leading to higher gains in productivity and profitability according to research by American-based analytical firm Gartner*.
It found changing mindsets in financial teams are behind the change. Previously managers have been reticent about moving their operations to the cloud for reasons of data sovereignty and functionality. However, the ability to collaborate, increased security and advanced analytical tools are shifting mindsets.
The trend has been noticed by leading cloud-based business management software provider MYOB, which says 31 percent of new enterprise resource planning (ERP) cloud implementations are now for pure financial management purposes**. That has helped push its MYOB Advanced solution to become the fastest growing cloud ERP platform in Australia and New Zealand for mid-to-large sized businesses.
Gartner’s 2017 survey of global senior financial executives found that that 37.7 percent of mid-size enterprises plan to move their financial management operations to the cloud, while “smaller and midsize organisations are adopting cloud more rapidly than larger organizations”.
MYOB general manager of MYOB Enterprise Solutions Carolyn Luey says mid-sized organisations are looking to streamline their finance function by automating business rules, processes and approvals.
“We’re seeing a shift in how mid-sized businesses approach their financial management. Many organisations I speak to are looking to online solutions to help them do more with less. For the first time in 2017, we saw cloud ERP adoption overtake on-premise installations in the Australia and New Zealand markets.”
Ms Luey says a big driver of the change in attitude is finance leaders desire to adopt paperless processes that focus on reducing manual data entry.
“A trend we’ve seen over the last two years is finance leaders wanting to decouple themselves from manual data entry. This is often because finance teams especially wear the bulk of the responsibility for data entry or consolidation.”
Luey says that finance leaders are now seeking to empower other stakeholders within their organisations to enter expenses, manage budgets or self-serve report requests. Cloud software, like MYOB Advanced, is perfectly suited to the new ways businesses are working.
As a software-as-a-service (SaaS) solution, it offers browser-based access to a host of business management tools, making it simple to implement and requiring minimal IT investment or involvement.
The Museum of Australian Democracy (MoAD) is one such example. It moved to MYOB Advanced and adopted a paperless financial management approach, delivering huge gains in efficiency and time saved.
“Our finance staff were spending too much time handling requests for information from various departments,” says Nick Hetherington, Acting CFO at MoAD.
“Using a cloud solution ensures we have a single source of truth, which gives users a central repository for all information, saving time and reducing data errors. Everyone is working on the same live database. Paperwork coming into the Finance Department has been cut by up to 75 percent.”
Ms Luey says cloud software is perfect for businesses wanting to streamline finances because it can be customised to create rules for approving costs, meaning finance controllers can manage by exception not by rule.
“It’s interesting to see some sectors are moving to the cloud faster than others. Twenty-two percent of wholesale and distribution and 19 percent of manufacturing businesses have shifted, while just 14 percent of professional services firms have moved.”
“We’re seeing the biggest appetite for digital transformation happening in industries that some might have thought were traditionally late adopters of new technology,” she says.
For further comment or other information please contact:
Amy Kirkwood, MYOB Australia PR and Corporate Communications Manager
M: 0427 822 088 / E: firstname.lastname@example.org
About the research
**Data from MYOB Advanced Customer Base (Sept 2017)
MYOB (ASX: MYO) is a leading cloud based business management solutions provider. It makes business life easier for approximately 1.2 million businesses across Australia and New Zealand by simplifying accounting, payroll, tax, practice management, CRM, websites, job costing, inventory and more. MYOB provides ongoing support via many client service channels including a network of over 40,000 accountants, bookkeepers and other consultants. It is committed to ongoing innovation, particularly in cloud computing solutions, and in 2015 was awarded the BRW award for the most innovative large company for 500+ employees and placed 2nd in BRW’s Most Innovative Companies Award list across all categories nationally. For more information, visit myob.co.nz or follow @MYOB on Twitter.