Written by – Greg Ekker – Sage Blog May 2022
If you haven’t yet moved your financial systems to the cloud, you may be considering it. Across industries including professional services and financial services, more businesses are adopting cloud-based accounting software and integrated financial management tools to streamline processes and enable data-driven decisions.
Cloud software adoption is accelerating worldwide. Gartner Research reports that 85% of organizations will have a cloud-first strategy by 2025. The demand for cloud computing continues to rise, as cloud financial services eliminate much of the manual, time-consuming data entry associated with traditional accounting software.
The benefits of cloud solutions are well documented. Leveraging a data cloud environment gives finance teams real-time access to financial data, helping organizations improve cash flow and make more informed decisions.
Cloud deployments increase business agility and deliver four times the return on investment (ROI) compared to on-premise deployments. Market data confirms that businesses of all sizes—from financial services and healthcare to consulting—are prioritizing cost optimization when evaluating new cloud financial systems.
However, the decision to move to the cloud is not always straightforward. Not every organization needs to move away from legacy systems or traditional accounting software immediately, but understanding modern cloud ERP solutions such as Oracle Cloud ERP can be valuable for future scalability.
If your business wasn’t born in the cloud, digital transformation requires a strong commitment to change and new skill sets. A successful strategy may include security compliance considerations, especially in highly regulated industries where real-time market data is critical.
You may be migrating one or more on-premise systems to the cloud now or in the future. The cloud may not be right for everyone. The key is to determine what’s best for your business, finance teams and specific requirements.
If you are moving forward with digital transformation, always plan thoroughly and set realistic expectations regarding costs, timelines and outcomes before beginning your implementation project. Careful planning will help you navigate business processes more effectively, whether your goal is cost savings or improved customer experience.
Here are 10 expert tips to increase the success of moving financial management systems (such as ERP) to the cloud.
Identify the right people
- For your cloud project, involve thought leaders who understand your business and software needs, as well as end users who will adapt to the new accounting system. Placing the right people in key roles supports data-driven decision making.
Three ways to ensure you have the right team:
Designate a project lead
- Choose someone with relationships across the business who can engage the right personnel when needed. They can help orchestrate technology integrations and streamline business processes.
Get an executive sponsor
- Leadership buy-in ensures the project team values the importance of a cloud approach and can resolve issues quickly. Cloud financial management implementations often affect multiple departments.
Incentivize participation
- Team members will still have their regular responsibilities, and their involvement may require extra hours each week. This could include data entry in cloud-based systems and testing real-time insights to ensure correct configuration.
Invest in and stick to the project plan
A detailed project plan ensures everyone understands their responsibilities and the overall timeline. Mapping out financial management processes keeps the project aligned with your cloud services partner.
Be realistic about commitments and consider vacations, holidays and other potential interruptions. Careful scheduling helps achieve cost savings, such as reducing time-consuming tasks.
Work closely with your service provider to define and agree on tasks and timings, and follow through. Experienced partners may recommend integrating solutions like Google Cloud or other data cloud platforms for secure access to financial data.
Even minor delays can quickly extend go-live dates and add costs. In a market where timely data is key, factor in complexities early in your implementation checklist.
Don’t replicate your old world in the new world
Learn what your new software can do with your service provider. Many organizations improve business processes by moving from traditional to cloud accounting software that offers real-time insights.
You’ll find new features and functions previously unavailable in your legacy system, even if you’re simply upgrading to a cloud version of your on-premise software. Cloud financial systems often enable advanced capabilities, such as artificial intelligence for data analysis and more robust forecasting.
Don’t limit your new software with old processes
Avoid replicating existing procedures, as they may include unnecessary steps from previous limitations or outdated workflows. Use cloud computing’s full capabilities to boost efficiency.
Evaluate other applications and their integration
Integrating external apps may be better than relying on CSV or Excel imports. Consider pre-built integrations or custom solutions for better access to financial data.
You won’t need all integrations at go-live. For example, you might continue importing files via CSV or Excel for the first few months while developing automated integrations. A smaller test group can help confirm your finance teams are ready for full adoption of real-time insights.
Start with the outputs
Consider the reporting you want and design backward. Build your reporting structure with cloud financial management in mind to ensure your data is organized, valuable and easily accessible for decision making.
Provide current samples of your most valuable reports to your service provider so they can align the data design and build reports that meet your needs when the system goes live. This is especially important for industries that rely on accurate, timely results.
Include only need-to-have data initially
Converting data to a new system can be complex and time-consuming. Think ETL:
- Extract data from your legacy system
- Transform it for the new system
Load it into the new system
- Optimize your data for the new system by eliminating duplicates and removing vendors or customers who are no longer partners. This step ensures you have accurate financial data to support business processes and cost savings.
This approach reduces data clutter and speeds up the project, accelerating the benefits of going live. Nice-to-have data, such as years of General Ledger or Subledger history, can be added after go-live.
Insider tip:
Unless required for legal or business reasons, extensive data history is often unnecessary in your new system, as historical research is typically infrequent. You may be able to retain access or extract data for offline use, saving resources, reducing security risks and keeping your new environment efficient.
Design with security in mind
Encrypt sensitive data such as Personally Identifiable Information (PII) and credit card information whenever possible. Use secure file transfers and collaboration tools if your team handles sensitive client information.
Limit access to only those who need the data, and deactivate and erase it upon project completion. This supports compliance and protects your organization from security breaches.
Implement Multi-Factor Authentication (MFA), strong passwords and role-based access. These features are standard in cloud financial systems and help mitigate potential threats.
Rip the Band-Aid off
With few exceptions, switch entirely to your new system at go-live. Using two platforms simultaneously is time-consuming and slows down cloud-based improvements.
Users tend to stick with familiar systems, delaying adoption of real-time insights and cloud accounting for daily tasks.
This slows down new system adoption, preventing early ROI and operational improvements. Embracing your cloud financial systems immediately accelerates learning and creates cost savings.
Going live is just the start
Even with the best implementation, users will not know everything at launch, and the first month can be challenging. Robust training helps finance teams understand key features, such as data entry automation and advanced management tools.
Work with your service provider as you become comfortable with the system, address questions and complete the first fiscal period close. Cloud financial services benefit from ongoing collaboration and iterative improvement.
Forty-five days after go-live is an optimal project completion point—one month of transactions plus two weeks to close the first fiscal period. Most activities repeat monthly, further supporting a single-system approach.
Understand it’s a journey
As the saying goes, “Rome was not built in a day,” and the same applies to implementing sophisticated software. Partner with your service provider and software vendor for long-term success, rather than treating the relationship as transactional. Organizations using technologies like Sage Intacct or Google Cloud know that continual refinement improves customer experience.
Use a qualified service provider with a proven cloud implementation methodology
Your financial management system should support your business for years. Investing in expert services ensures it’s done right. A partner who builds cost optimization into your cloud ERP strategy can save money and improve processes over time.
Digital transformation is an evolution
Digital transformation is ongoing. Changing environments, habits and technology will continue to reshape how you do business, whether in financial services, healthcare or professional services. With the right strategy built around cloud solutions and advanced management tools, your platforms will adapt, letting you focus on real-time insights into cash flow, business processes and cost savings.
Ready to take your financial systems to the cloud? Contact our team today to learn more about cloud solutions, explore tailored implementation strategies or discover how our services can help your organization achieve operational excellence.
