Financial Planning Cloud Software is a tool that businesses utilize to replace in-house financial management solutions and processes. As a financial management software-as-a-service (SaaS) solution, cloud financial management generally operates by licensing a collection of software licenses and the resources necessary to run them from a cloud service provider. Cloud computing enables businesses to operate the solutions they want without investing in legacy solutions that require on-premises infrastructure, saving time and resources.
Differences between Legacy and Cloud Financial Management
The main difference between Legacy and cloud financial management is that the software and applications with cloud solutions are housed on a service provider's off-site platform with a cloud solution. This eliminates the need for your firm to maintain its own data center, servers, and other physical assets. Instead, you may use a cloud-based platform to access the software and services you need remotely.
Another significant distinction between cloud-based and on-premises financial management systems is that the cloud service provider (CSP) is responsible for all physical upkeep with cloud-based solutions. However, depending on the CSP, you may be needed to handle the setup and upgrades of your app, but this is entirely dependent on whether you have a comprehensive or partial cloud solution.
What are the Specific Advantages of Using Financial Planning Cloud Software?
Some of the advantages of cloud-based financial planning software include the following:
1. Ensures enhanced secure Financial Systems and Data. Increased security is achieved by using a comprehensive cloud financial management system in which the cloud service provider manages both physical server maintenance and software updates/patches. This is because routine software patching helps eradicate security flaws in software that hackers may use to steal sensitive data. Additionally, CSPs may have a staff of cyber security professionals that can guard against infiltration attempts against their financial management software-as-a-service.
2. Assists in the handling of data in a simplified manner. With an on-premises financial management system, your business's financial data may be split over an unlimited number of network assets. This may be a source of disruption for your enterprise's already complex financial activities, diminishing productivity and raising the chance of accounting mistakes. Consolidating your financial management systems with a cloud-based solution helps minimize duplicate data, making things simpler to trace in the event of an audit.
3. Enterprise Mobility Increased. With cloud financial planning solutions, your enterprise's financial officers may access the finance data and systems they need from any location with an internet connection. This increases your financial management team's independence and mobility, making their work simpler.
4. Expenses are More Predictable. One of the significant hazards associated with having an on-premises financial management system is the potential for fluctuating expenses. With on-premises solutions, you must update your data center on a regular basis, replace servers, license newer versions of your operating system and applications, and do an emergency repair. This results in variable expenses, in which things operate well for one month and then blow through the budget the next month. Cloud financial management software streamlines the process by including these additional fees in their monthly charge, resulting in predictable, steady expenses.
5. Scalability is simple when your enterprise's needs change. A significant financial advantage of cloud migration is the ease with which your cloud deployment may be scaled to meet your enterprise's demands. In this case, you pay for just the resources you really need during any given month. This contrasts with the on-premises financial management solutions, which need budgeting for data center expansions whenever your organization outgrows the capacity of current systems.
6. It eliminates server maintenance. Maintaining data centers and servers in good condition is a significant drain on resources, requiring experienced workers, specialized equipment, and possible downtime during repairs. With a cloud-based system, the cloud service provider manages server maintenance and any necessary upgrades.
By choosing a financial planning cloud solution, such as Anaplan, an organization saves time, money and risk. A cloud based financial planning solution is a great option for today’s remote work environment.
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