4 Benefits of Cloud-Based Financial Solutions

Citizens trust their government agencies with some of their most sensitive financial information. As a leader in public sector finance, your team may handle and store Social Security numbers, bank account details, credit card info, income verification documents, government benefits data and much more. 

It’s your responsibility to make sure this information isn’t compromised – a growing challenge in the digital age, as cyberattacks threaten government agencies. Communities also desire transparency and accountability from their local governments. Cloud-based financial management systems can help with both of these concerns, and more. 

In this article, we explore the growing trend and demand for cloud technologies in public finance, driven by the need for greater scalability, operational efficiency and transparency. We’ll also dive into the benefits of these systems, and how a couple governments successfully made the switch to the cloud.

The Growing Demand for Cloud-Based Financial Management in the Public Sector

Government agencies face increasing pressure to operate with transparency and accountability – all while navigating compliance requirements. Traditional methods that involve manual processes and paper-based systems can’t keep pace with growing demands. 

As a public sector finance leader, you’ve seen it firsthand. Managing spreadsheets and physical documentation is cumbersome, slow and expensive. Using disparate systems makes reporting and analysis more difficult. Even on-prem solutions are rapidly becoming relics of the past.

Driven by the need for more efficient, scalable and secure financial operations, the public sector is replacing these outdated processes with cloud-based financial management systems.

Cloud-based finance solutions provide access to real-time data and financial insights, allowing for quicker decision-making and more accurate budgeting and forecasting. This immediacy is important in today’s fast-paced administrative environment.

With the growing threat of data breaches and cyberattacks, agencies also require better data security. Fortunately, cloud solutions offer advanced security features that help governments adhere to strict regulations around financial data. 

Thanks to the numerous benefits of cloud-based financial solutions, more and more public sector agencies are saying goodbye to tradition and hello to innovation.

Benefits of Cloud-Based Financial Solutions

Scalability

Cloud-based financial solutions provide remarkable scalability, allowing your agency to easily adjust computing power based on current needs. This is particularly helpful if your operational demands fluctuate drastically throughout the year.

During tax season when the workload increases, cloud systems can scale up to handle the higher volume without the need for physical infrastructure upgrades. Similarly, these systems can scale down during slower periods, making them cost-effective. This flexibility supports a more responsive and adaptable financial management approach.

Real-Time Data and Reporting

Cloud-based systems facilitate real-time data access and automated reporting, an improvement on traditional methods that rely on manual, periodic updates. With easy access to financial data, managers and stakeholders can monitor financial positions continuously and quickly make informed decisions.

The visibility of real-time financial reporting allows for budget adjustments, forecasting and strategic planning. It also supports better compliance and audit-readiness by ensuring that all financial activities are accurately recorded as they occur. 

With cloud solutions, you can generate reports without the manual reconciliation typically required in traditional systems. And since updates are managed centrally by the provider, your financial reporting will adhere to changing regulations and standards – giving you one less thing to worry about.

Cost Efficiency

Many agencies move to the cloud for cost savings and predictable budgeting. Cloud-based systems eliminate the need for extensive IT infrastructure, such as servers and data centers, which are expensive to purchase and maintain. 

Plus, cloud solutions tend to use a subscription pricing model – meaning agencies only pay for the services they use. This reduces upfront costs and lowers the total cost of ownership (no maintenance or storage costs for on-prem systems). Cloud providers handle system maintenance and upgrades themselves, reducing your agency’s IT burden and freeing up resources for key financial activities.

Transparency

Communities want their local governments to operate with transparency and accountability. Cloud-based financial solutions help your agency accomplish this. 

By operating on a centralized system that integrates with other key systems, you can be confident that every authorized user has access to the same information. Shared access facilitates greater oversight of financial activities, helping to prevent errors and fraud. It also allows stakeholders to track financial operations in real-time, which promotes accountability and trust.

Transparency is further improved through detailed audit trails – another perk of most cloud-based systems. These records track every transaction and modification, providing a timestamped history of financial actions that is invaluable for reports, audits or reviews. 

With this level of transparency, your agency can comply with strict regulations and strengthen stakeholder confidence in your financial practices. 

Real-World Success Stories 

Texas Department of Information Resources

The Texas DIR has transitioned to cloud-based solutions to provide state agencies with more flexible, cost-effective IT infrastructure. In 2014, they even provided a cloud services guide to help state agencies make the move themselves.

This transition resulted in improved efficiency and security across Texas government operations. It has allowed agencies to access computing resources on-demand without managing their own physical hardware, which has led to better scalability, cost savings and resource allocation.

According to Texas’ 2022–2026 State Strategic Plan for Information Resources Management, “Whenever possible, the public sector should prioritize cloud-driven ‘as a service’ solutions to lower costs over time and transition away from on-premise models.”

Tukwila, WA

Tukwila, WA moved to the cloud by adding CentralSquare Finance Enterprise to their city system. Their new paperless environment allows employees to report on their data and share information seamlessly. They were looking for a long-term partnership, not just another software solution, and they have been satisfied with the results.

Listen to our interview with Vicky Carlsen, the Finance Director for Tukwila.

How CentralSquare Modernizes Public Financial Management

The future of public safety is in the cloud, and with CentralSquare, that future is within reach. Are you interested in simplifying your financial, HR and payroll processes with a cloud-based

financial system that easily scales to your needs?

CentralSquare Finance Enterprise lets public agencies do more with less. With a cloud-based financial system that easily scales up or down, Finance Enterprise provides flexibility for smaller government agencies. It combines finance, HR and payroll on an easy-to-use, centralized platform that includes:

• Out-of-the-box functionality for quick and easy implementation
• Ability to configure workspaces, workflows and screens to fit your team’s needs
• Automated reporting and access to real-time data for faster, informed decisions
• Automated workflows (i.e. ability to move POS payments between approvers)
• And much more

Schedule a discovery call today to learn how our cloud-based finance solutions can help your team operate more efficiently, save money, improve transparency and increase data security.