What are the Must-Have Features for a Cloud-Based Financial ERP?

A lot of CFOs recommend a switch from on-premise to cloud-based ERPs for their business without realizing the importance of such a move. A major mistake financial enterprises make while considering moving to the cloud is treating a cloud-based implementation like a simple exchange of technology. CFOs could do well to have a handy checklist of features which they should demand from their cloud vendor before considering the transformation. There are a lot of benefits from moving to the cloud and having a handy guide to these advantages would help any business.

So, what are the must-have features? Check out five of the most important below:

1. Security:

A major benefit from moving to a cloud ERP would be security. Cloud ERP vendors have better security solutions compared to their on-premise counterparts. When it comes to financial clients, the issue of security becomes more crucial as the information is usually sensitive and cannot be subjected to leaks. Cloud vendors are also protective of their reputation and do not like data breaches as it could harm their reputation. Finally, cloud ERP vendors have the advantage of economy of scale to invest on tighter security solutions.

2. Customization:

Cloud Financial ERP providers are investing heavily on code that can be easily configured by businesses. Customization is easy if an ERP is on the cloud when compared to an on-premise ERP because the cloud ERP is usually built for flexibility; the code can be regularly updated. This is a major consideration for finance enterprises which frequently undergo changes in their business processes.

3. Cost:

Cloud financial ERP providers are cheaper to implement than the on-premise solutions. In a cloud ERP, the capital expenditure for the company is zero. All the IT infrastructure from the servers to the security packages is paid for and maintained by the vendor. Although the operating expenses are on the higher side with cloud vendors, almost all these ERPs provide a per-user subscription package which saves a lot of costs for companies considering the move. Coupled with great security and flexibility, the low cost and savings make cloud ERPs a very attractive business opportunity for most finance enterprises.

4. Opportunity to transform business processes:

With the implementation of a cloud financial ERP, enterprises can rethink their own business processes and consider a change in strategy. Switching from a legacy ERP to cloud requires a rethinking of the business process and moving could give businesses an opportunity to evaluate their existing business functions and figure out the areas in which they’ve been lagging so they can formulate a change in strategy. This is an unexpected benefit but many companies have embraced this opportunity enthusiastically and the changes have transformed firms and driven profits.

5. Cloud ERPs drive innovation:

In a traditional ERP implementation, the scope for the IT department mainly entails maintenance of infrastructure and updating patches. They also take care of documentation, storage, backing up information, and ensuring hardware failure does not stop business from functioning. Local IT also handles minor support issues at times. When businesses move to the cloud, IT teams have opportunities to test the ERP and manage hybrid implementations. The IT department also gets exposure to the per-user subscription model.

Although these features are not the only benefits that a cloud ERP brings to an enterprise, they are some of the key benefits that can unlock the potential of businesses switching to the cloud.