CFO's are The New Cloud Software Champions

Cloud computing and cloud-based solutions aren't the next best thing, they are already here and this movement is largely being driven by end users and tech shops. This has created a micro-management mess for many companies. In a large study, Symantec found that the average number of cloud apps in use in various industries was 926. As more cloud-based solutions become available and utilized, companies need to implement streamlined processes that make the integration and implementation phase easier. Defining this process has now largely fallen in the hands of the CFO largely because of how these solutions effect OpEx and CapEx.

“We find cloud apps are less likely to experience security issues compared to utilizing a third-party vendor who may have to go through an interface process to talk to the software...”

— Kim Lee, COO at Faith Community Hospital

According to a study completed by Black Book, IT spend as a percentage of operating expenses in their organizations has increased at least 50 percent since 2015. Doug Brown, managing partner of research at Black Book states, "In current economic times with most organizations in the pursuit of maintaining a lean balance sheet to preserve cash flow, the cloud migration decision is appropriately led by the Chief Financial Officer. It shouldn't be a CIO's job to determine CapEx or OpEx or the benefits of accounting for technology investments as an operational expense versus a capital expense." 

Cloud-based accounting solution integration will not only aid in the daily practices of the CFO but the CFO is now also in charge of understanding how each cloud-based solution has an effect on their CapEx or OpEx as a whole.