Three Reasons the Time Is Ripe for Cloud Transformation

Cloud computing ranks among the top three IT initiatives.

March 24, 2022

The proliferation of hybrid work environments has compelled organizations to begin or accelerate cloud transformation. AvidXchange’s Chief Product Officer, Joseph Fox, shares how moving core business functions to the cloud can make remote work possible while improving operations, reducing accounting complexity and accelerating payments.

Cloud computing ranksOpens a new window among the top three IT initiatives, and investment continues to accelerate at a remarkable pace.  According to Gartner, it’s expected that global spending on cloud services will exceed $482 billion this year, up from $313 billion in 2020Opens a new window . Such growth is not surprising given the proliferation of work-from-home and hybrid work environments that depend on cloud solutions for efficient and scalable operations.

As many organizations learned during the early days of the pandemic, operating productively in a remote environment demands more than just sending employees home with laptops and checking in via Zoom. Many mission-critical business processes, like those of accounting and finance functions, are manual and paper-based, making it difficult for those teams to handle them from any place other than the office. These teams need, for instance, access to the mailroom, files, and check printers, not to mention the people required for approvals. Without access, bills go unpaid, jeopardizing essential customer relationships and, in turn, the business.

By moving data and paper records to the cloud, organizations can reduce the paper chase associated with receiving and processing paper invoices, routing invoices for approval, and issuing check payments so teams can easily and securely process, approve, and pay bills from anywhere, any time. What’s more, APQC researchOpens a new window shows that moving to the cloud not only enables employees to more effectively and efficiently work from home, but also provides numerous benefits for the business. 

See More: 3 Best Practices for Keeping Pace with Cloud Trends

Three Key Benefits of Cloud Transformation

As you consider the overall IT budget, take a closer look at how cloud investments can empower the organization to improve operations and adapt to the remote and hybrid work opportunities that appear poised to stay while reaping three key benefits.

1. Cloud solutions promote smooth collaboration

One of the most convincing reasons to embrace the cloud is its ability to enable collaboration between teams, which is even more critical as teams shift to more remote work. With data securely stored and accessible in a centralized, searchable database, teams can access it when they need it, regardless of location. 

For instance, with cloud-based back-office solutions, invoices are digitized, and data is centralized—rather than living in file cabinets—allowing accounting teams access via a portal. Finance professionals and business leaders can track the status of any invoice, analyze for trends, run reports for management, and share important financial information with finance teams to help them better forecast, make projections or set budgets.

By replacing time-intensive manual accounting tasks like chasing approvals on invoices, teams have more time to collaborate on areas that save their business money, like dynamic discounting, supply chain financing, rebate programs and other solutions, and maybe most importantly, strengthening relationships with customers. 

2. The cloud enables smarter remote environments

Financial transactions are innately complex and highly regulated. Remote work introduces a host of new complexities, such as how teams collect and reconcile invoices without a trip to the office or how finance will ensure the security of sensitive financial information and access it when needed.

Without a centralized cloud-based solution, it is easy to lose an invoice. The likelihood of it happening is even greater when working from home when team members aren’t together or physically able to check the scanner or mailroom. An automated, cloud-based process allows finance teams to oversee the entire invoice approval process from start to finish. Workflows can be personalized based on company workflows and needs, and processes are fully integrated with existing software, so there’s no jumping back and forth between platforms. 

Cloud solutions may also ease regulatory compliance by enabling tighter internal controls, monitoring regulatory changes and alerting companies if requirements change or if red flags are detected. Additionally, they may increase security by protecting against fraud and improving oversight and accountability.   

By automating time-consuming processes and ensuring that they are done securely and accurately, teams can take on more work without adding additional staff, increasing their organizations’ resiliency and scale to capture new opportunities.

3. Cloud computing accelerates secure payments

Pandemic disruptions and a resulting shift to remote and hybrid work have many companies uncertain about the shape of their work model into the future. They have inspired some to source new technology to increase resilience, efficiency, and competitive advantage. McKinseyOpens a new window also credits “an acceleration in customer appetite for digital experiences and rising competition in fintech” as one of the core reasons companies are looking to modernize by adopting new technologies, including the cloud.

One of the ways cloud-based accounts payable technology can help businesses increase resiliency, and better prepare for changes that may lie ahead is to ensure suppliers and vendors can be paid securely and on a timely basis. Leveraging a platform accessible via the cloud allows invoices to be submitted and payments made regardless of location. While checks will remain the top choice of payment for some companies, offering suppliers a selection of e-payment options like Automated Clearing House (ACH) and virtual cards can increase the speed and security of payment receipts. Electronic payments can also provide richer payment data, such as remittance information, enhancing visibility and oversight.

Embrace Your Cloud Transformation 

For the foreseeable future, remote and hybrid work environments are here to stay, and they challenge traditional business methods. Adopting cloud-based solutions can empower organizations to adapt to decentralized workforces and overcome related challenges. Moving core functions to the cloud can facilitate collaboration, minimize operational complexities, and improve the efficiency and security of mission-critical processes like processing invoices and paying bills.  Companies cannot afford to overlook such advantages.

What’s keeping you from embarking on your cloud transformation journey? Share with us on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . We’re always happy to hear from you!

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Joseph Fox
Joseph Fox

Chief Product Officer , AvidXchange

As AvidXchange’s Chief Product Officer, Joe is responsible for product strategy and leading the products organization, where he uses his extensive experience to bring innovation to existing and future AvidXchange products. His specific focus, and that of his team, is to develop Software as a Service (SaaS), value-based business software solutions for our customers.
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