By now you’ve probably read quite a bit about the benefits of switching from on-premises to cloud-based solutions. Forrester research reports that 50% of companies plan to increase their cloud spending in the next 12 months. About 92% have prioritized cloud computing as a new initiative in the next 18 months. Cloud computing isn’t the concept of the future; the future is here, and most companies will run at least one or more cloud-based software programs within the next year
As you consider switching all your software to the cloud, you may have questions. What do you need to know to make the transition? What benefits will your organization obtain from the switch? Is the cloud a better solution?
Five Big Benefits of Cloud-Based Systems
Consider the following five benefits of cloud-based systems and how they may impact your organization.
- Obtain a clear picture of financial information: Quickly view the entire financial picture for your nonprofit organization. Cash flow, membership dues, sales from products, event/conference income, and much more can be reviewed easily and quickly. Information from multiple departments feeds into one system to provide a comprehensive big-picture view of the financials for your organization.
- Decreased reliance on spreadsheets: Many nonprofits still use spreadsheet-based accounting. Spreadsheets offer a simple method for running basic accounting information but lack the sophistication of combining information into one easily accessible location. Spreadsheets tend to be finicky, with formulas and formatting that can be tricky to use. And one small data entry error on a spreadsheet can lead to multiple problems later. Cloud computing reduces these chances. Reports can be run directly from cloud-based systems without fussing about formatting.
- Enhanced visibility: Cloud-based systems enhance and increase visibility of data across all parts of the organization. Everyone shares their information in a cloud-based system, with access available to all departments and team members.
- One data source: On-premises software can lead to multiple versions of the same document. Chasing after the latest version and reconciling changes can take a great deal of time. Cloud systems always provide the latest reports and information.
- Integrate office processes: Cloud systems integrate front and back-office operations into one system. You’ll no longer need to maintain separate systems for both.
On-premises solutions have many drawbacks. Not only do they lack integration and visibility, but they need updates. Updates must be performed individually on each piece of equipment. Cloud solutions update automatically so that the latest version is always running.
The Main Difference Between On-Premise and Cloud Solutions: ROI
Lastly, the biggest difference between cloud-based and on-premise solutions is the ROI. With cloud solutions, efficiency increases immediately after adopting the cloud. The system gains in value with a positive ROI as it saves time and money elsewhere in the organization.
Not so with on-premise systems. Such systems begin losing ROI from the moment they’re installed. With constant updates and upgrades, purchases of special hardware and equipment to run them, and salaries for people to maintain them, these systems increase in cost and decrease in ROI.
Clearly, the winner is the cloud. With so many organizations adopting cloud-based solutions and more nonprofit software offered via the cloud, it’s time to make the leap to the cloud.
Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you improve and grow your accounting practice. Please contact Welter Consulting at 206-605-3113 for more information.