23 Apr Cloud for Publicly Traded Companies
Implementing business systems in the cloud for publicly traded companies requires comprehensive support for compliance, security, risk management, accounting and human resources.
Whether you are already a publicly traded organization looking to update your systems for mobility and cloud, or a privately owned business preparing to go public, an affordable cloud based enterprise resource planning solution that is quick to deploy, integrates with other applications and provides backstops and support for security and compliance is a critical part of your technology.
If your business is already a publicly traded company you face a rapidly changing technology landscape, and entry level accounting software and disparate line-of-business applications are already creating drag on profitability and productivity. Plus you have to face new problems like financing the expansion of production or service capacity. And with new requirements like reporting across entities, reporting to stakeholders and even public relations and marketing, every part of your business is more complex.
If you are still preparing to go public your IPO alone is going to cost your company some serious equity plus you have fees for outside accounting, legal and other professional services. Going public means you have to begin a robust book building process, perfect your business framework and sell yourself to underwriters and other investors.
To help you find the best cloud solution for your business we created a 3 part blog series on going public in the cloud which discusses:
Cloud Compliance Solutions – Cloud computing offers a lot of benefits in the form of cost savings, mobility, agility and efficiency, but most cloud services cannot deliver the security and compliance requirements of public companies. However, enterprise hosting services from a provider that specializes in the cloud for publicly traded businesses can. Does the solution you are considering provide in-depth reporting across entities with audit traceability for compliance and SSAE 16 Type II reporting? Does the provider offer a comprehensive Service Level Agreement, including up time guarantees, data privacy, security and data ownership policies with internal controls within the hosting organization to support your auditors and audit readiness for compliance?
Accounting Software Online – Reporting, planning, forecasting and cash flow management are hard enough processes as a privately held company. But when you go public standalone accounting software with rubber banded disparate applications is simply not enough to get the job done and avoid risk. If you are considering new business software in the cloud, ask if the solution offers hundreds of standard reports, consolidated financials, multi-entity reporting and multi-currency reporting? Will the solution integrate with existing applications while delivering real-time business intelligence and social insights for more accurate forecasting and planning? Will the solution help you avoid risk through intelligent cash-flow management, workflows and backstops for compliance, role based access restrictions and detailed audit reports with traceability?
Human Resources in the Cloud – As a business grows, so does the complexity of payroll, human resources and communications. Does the solution you are considering offer fully integrated human resources functionality that helps you recruit new talent, including investor relations and public relations experts while delivering KPIs for more strategic delegation. Does the solution deliver role based user access restrictions, automated reports and integrated CRM workflows to improve transparency and give stakeholders access to information they need with access levels you choose? Will you get simplified payroll and employee tax to help you grow your staff, while offering self-service employee portals that are protected by the highest levels of security, encryption and confidentiality?
As a business expands or goes public it will need deep technology infrastructure that is agile and scalable to support continued growth, increased production and increased service capacity. Public companies also need automation and support of more complex requirements for reporting, security and compliance. While public cloud services can’t deliver all the requirements of a publicly traded company, it doesn’t mean that going public in the cloud isn’t viable. The truth is that the cloud is the ideal model for going public; it’s just a matter of finding the right services provider to get you there.
Check back soon for our next article on the cloud for publicly traded companies, or watch this video to see how an ERP solution can help you achieve your goals in the cloud for public traded businesses.