Breaking through the cloud

When asked about their top priorities at work, 50% of fi nance professionals said they wanted to provide a higher quality of data to company leadership to guide business decisions, according to new research by Advanced. Enter cloud solutions, with real-time updates and data analysis models galore. Why is it then, that so many finance functions are either still weighing up their options, or are still in the very nascent stage of cloud adoption?

Persistent barriers

Nick Levine, chartered accountant and fintech consultant, is of the opinion that many simply don’t want to rock the boat. “If the desktop solution they have is enough for them to rumble on and get the job done, they’ll tend to carry on with it,” he says.

This is especially true, in his experience, if the person leading that team has limited involvement with the day-to-day running of the team. If the current system is causing pain points and inefficiencies, the decision-maker is much less likely to be aware of them.

For other companies, it might not be a lack of willing that’s holding them back. “I think it’s a time issue. People running busy finance departments often don’t have enough of it to do the proper research,” says Tracy Johnston, VAT and bookkeeping department manager at accountancy firm Douglas Home and Co.

She cites fears over the duration of an implementation stage and the effect it could have on an already packed schedule. For those labouring under these constraints, Johnston’s advice is clear. The time cost involved for the implementation and training for a systems upgrade pales in comparison to the time saved in the long run. Hudson Business Advice’s Della Hudson thinks there could still be an issue with a risk-averse mindset that she suggests is stereotypically present in the profession. She also recognises a challenge for finance managers working in larger businesses who have to secure buy-in from the rest of the company. “Small companies are much more agile so they have an advantage there,” she says. 

Implementation

So, for the cloud curious among you, where should you be looking to start? Levine’s advice is to take a modest approach: “If you’re going to roll out something new, you might want to do it in a smaller part of the business as a trial run to see if you can prove it’s a success.” Taking this approach means the trial will cause less disruption and should prove itself useful or otherwise in a shorter time.

Such an undertaking will require a multidisciplinary project team. One non-negotiable member of that team, according to Hudson, is the project’s naysayer in chief. “Once they’re on board,” she says, “everything else will follow”. She concedes that this can make early stage meetings a rather monotonous process, having to repeatedly win over the reluctant party, but once you’ve put in the hard yards and convinced them, you’ll be halfway there.

Also, someone who isn’t enthusiastic about the project is more likely to see potential challenges than the cheerleaders. With your project team acting as chief testers initially, alongside ‘super users’ once the solution is in place, you’ll have a solid knowledge base to pass onto the wider business. Add in training for users before the solution goes live and two weeks after its rollout and you’ve got the basis for a strong implementation plan. Successful rollout is an ongoing process though. “Going live isn’t the end of the implementation, warns Hudson, “it’s the start of phase two of the process. You need to make sure everybody’s comfortable.”

Benefits for all involved

The advantages of a system upgrade aren’t just purely for the business, with tech skills now an increasingly important part of a finance manager’s arsenal. “With the changing skills expectations that companies now have, finance professionals should have a vested interest in cloud solutions so they can future-proof their own career,” says Levine. A job for life is increasingly a thing of the past and when the time comes to explore the job market for a new role, cloud expertise could prove pivotal.

Janine Blacksley, director of Walters People, is intimately aware of the skills boost working with the cloud can offer candidates seeking a new role: “Accountants will not only gain experience in new tech, but it will also free them up to be more forward-facing and attentive to the business’ strategic needs.” This extra time away from the nuts and bolts of processing means a chance to gain more experience in other in-demand skills such as communication, problem-solving, critical thinking and relationship building.

Teams in the cloud

This new way of working will likely see FDs looking for diff rent skills in new hires. “It’s historically a role that’s been extremely process-driven, with repetitive monthly tasks that have a very set way of doing things without really questioning things,” Levine reflects. He sees a future in which hiring managers will look for people who not only have the technical accounting ability but also have the ability to approach challenges creatively and think of new ways of doing things more efficiently.

Cloud solutions typically aggregate information and improve the presentation of real-time data to the finance function. This up-to-date flow creates opportunities to drive faster and better decision-making. And the use of external data sources can improve forecasting. “It can take accountants out of their comfort zone if they’ve traditionally spent all month preparing accounts and are now being asked to look forward,” says Hudson.

This increasing tendency for the profession to look forwards rather than backwards will also cause managers to seek a different set of skills in their new recruits, Hudson adds. Echoing this sentiment, Blacksley says fi nance leaders will be looking for candidates “with high levels of digital literacy and place value on those who can think strategically”. For anyone left on the fence about implementing cloud solutions, Johnston’s advice appears decisive: “They can’t ignore progress forever.” Citing HMRC’s progress towards real time reporting, and the necessary technological advancements to keep pace with it, she sees little choice in the matter. She adds: “Using a cloud solution will be essential in the fi nance department of the near future.”

George Carey is a freelance journalist