It’s no surprise that cloud-based business budgeting software has become more of a necessity over the years. Organizations have to shift to remote working methods because of the pandemic and then adapt to a hybrid working environment.
Using cloud-based business budgeting software comes with a distinct set of advantages because it allows you to gather data from any location with an internet connection. In addition, CFOs and budget managers who use cloud-based systems see improved reporting, faster results, and even long-term savings.
Many companies are ditching Excel in favor of online budgeting software is no surprise. Here are some points you might want to consider why its time for your organization to explore a cloud-based budgeting solution for 2022 and the coming years.
Access to Your Budgeting Software at All Times
With the large and complex systems of the past, it has been a welcome change for many businesses to access virtually any information via the internet.
It means that the budgeting system is no longer tied to a specific office desktop that people can only access during office hours.
This kind of setup can also drag on efficiency, particularly for small businesses with thin financial teams. The CFO may not have access to budget or cash flow data while away at a conference, for example, unless someone else logs into the system, compiles the data, and sends it to them.
Things have shifted since then. CFOs, budget managers, and analysts can access the data they need financial statements, budgets, and forecasts, create reports, and run scenarios from anywhere in the world, thanks to cloud-based budgeting and forecasting software.
Cloud Software Reduced Costs
Cloud-based budgeting software is one of the most popular options for businesses looking to save money. In today’s world, most cloud software is offered as a subscription service, which means users pay a monthly or yearly fee. This eliminates a significant portion of the budget’s uncertainty right away.
This means that cloud services have a fixed capital outlay every month or year, saving money for the future. You can easily track the return on your investment in cloud-based planning software because it is often subscription-based in nature.
Savings in the IT department can also be attributed to lower costs. Cloud-based budgeting systems and services do not necessitate new hardware or upgrades, reducing operating budget surprises.
Reduces the involvement of the IT department
Cloud-based budgeting software eliminates the need for a dedicated IT infrastructure, which is another significant advantage. In-house IT resources, such as servers, networks, and hardware, are not required.
The host is in charge of all aspects of cloud-based software. They take care of any issues with the software, run a help desk, offer upgrades or patches, and ensure compliance.
As a result, cloud-based budgeting software reduces the need for IT staff to be on call for immediate fixes during budgeting season. In addition, the IT department is freed up to focus on other projects because it doesn’t require dedicated resources.
Before purchasing, cloud-based systems allow for live demos and trial periods without IT installing a temporary software package on the finance team member’s computer or setting up an environment just for the evaluation. The vendor can easily create a SaaS application account without the involvement of IT.
Our survey discovered how crucial it is for companies to use technology effectively. We recently found that improving the efficiency of the finance team was the top priority for implementing new technology. This year, 10% more respondents plan to use a cloud-based accounting/budget application than the previous year.
Financial Planning with Flexibility
When it came to budgeting models, companies had limited options. Enough time and resources were consumed in preparing the annual budget. Organizations, particularly small and medium-sized ones, can’t afford to spend more time budgeting because it could take months to plan. In addition, the pace of business did not necessitate greater flexibility in financial planning on the part of companies.
As a result, the business world has changed. CFOs can no longer develop the company’s strategic vision without the input of the office of finance. For a modern finance team, managing balance sheets and excel spreadsheets by hand is a waste of time and resources, and forecasts that remain static for more than a year can prevent a company from responding to changes in their industry that could be disruptive.
Many businesses have switched to forecasting software that allows for rolling forecasts to meet the demand for flexibility. The budget managers can make minor adjustments more frequently with rolling forecasts rather than spending much time once a year and sticking to the approved budget. A business’s leaders must update their line items for that to happen continually. Accessibility is crucial. As a result of this, cloud-based planning software is the best option.
As a result of cloud-based budgeting software’s user-friendly interfaces, budget managers don’t need to always be on their computer or desks to update financial accounts.
Aiming for Better Decision Making Through Improved Reporting
Technology has simplified processes for businesses, allowing them to adapt and innovate over the years with cloud-based software.
In addition to speeding up the budgeting process, cloud-based budgeting software improves forecasts and, thus, financial performance. At any time, financial data can be crunched to produce detailed reports, and what-if scenarios can be quickly and easily tested out.
