With the adoption of cloud services, many companies are undergoing a major shift Photo: Le Toan

Tran Thi Nham, chief accountant from Kim Tin Corporation, a firm specialising in welding equipment, has experienced substantial time savings and increased accuracy by leveraging cloud-based consolidated financial statement solutions. She told VIR, “With the adoption of cloud services, we can now swiftly generate reports, including cash flow statements, without the need for manual data extraction and consolidation.”

The automation streamlines the process and facilitates seamless collaboration, even with renowned firms, minimising the need for extensive adjustments during the reporting phase.

Pham Duy Hoang Nam, CFO of FPT Retail, said that the company’s financial reporting process previously required a team of at least three individuals working continuously.

“However, with the adoption of cloud services, the company underwent a significant shift. Our reporting team could now be streamlined to a single person. This allowed us to focus on reconciliation tasks and identifying discrepancies within the system, resulting in improved efficiency,” he said.

The implementation of a cloud-based system automated various tasks, saving valuable time and reducing the risk of errors. With financial data securely stored within the cloud, businesses could benefit from improved accuracy and data integrity. The automated processes streamlined their reporting workflows, leading to significant time savings and increased productivity.

Le Hong Viet, CEO of FPT Smart Cloud, underscored the importance of cloud-based service providers in offering seamless integration capabilities with various accounting software and leveraging multiple cloud platforms, including Oracle, Fast Accounting, or Misa.

This integrated approach plays a crucial role in enabling businesses to effectively automate their financial processes, ensuring a smooth and continuous flow of data and facilitating consolidated reporting. By consolidating data from diverse sources onto a unified cloud platform, businesses can access comprehensive financial insights efficiently, leading to more informed decision-making.

Viet further highlighted, “Our service could assist Vietnamese companies in seamlessly adopting International Financial Reporting Standards or transitioning from Vietnamese Accounting Standards. This feature provides significant benefits, particularly for listed entities, as it reduces the time and effort required for the conversion to global accounting practices, eliminating unnecessary complexities.”

In line with the growing importance of sustainability in today’s business landscape, some cloud services providers could also integrate additional features that will assist companies in launching their sustainability reports and adopting environmental, social, and governance criteria.

“Currently, the adoption of cloud services for integrating or consolidating financial statements among listed companies in Vietnam is still relatively limited. While there is growing awareness of the benefits offered by such solutions, only a small number of companies have embraced this technology to streamline their financial processes,” Viet told VIR.

However, he stated, as more organisations recognise the advantages of cloud services in terms of automation, data consolidation, and improved reporting accuracy, it is expected that the number of listed companies leveraging cloud services for financial statement integration will gradually increase in the future.

Nam of FPT Retail acknowledged the complexity of handling data from various sources, particularly in the retail industry, such as point-of-sale systems and accounting systems.

“The seamless integration of these systems becomes crucial to successfully process a high volume of transactions. An illustrative example is FPT Retail’s Long Chau, a local pharmacy chain, which records approximately six million sales transactions per month. To handle such a large volume of data, robust financial data processing capabilities are required, including daily synchronisation, timely closing, and comprehensive reporting functionalities,” he said.

He also underscored the importance of reflecting transaction fluctuations in the balance sheet, in addition to ensuring accurate account balances. Traditional accounting practices often focus on the latter while overlooking cash flow dynamics. Accurate representation of cash flow dynamics in financial reporting is crucial to align with accounting standards and facilitate effective cash flow management.

In addition, industry insiders also believed cloud services offer immense value to real estate companies with numerous projects and subsidiaries. These businesses, including those exposed to high tax risks, can benefit from cloud solutions that enhance financial management and streamline tax-related processes. By leveraging cloud services, companies can effectively navigate complex tax regulations and ensure efficient financial operations.

Viet of FPT also noted that cloud-based systems often adhere to rigorous personal data protection standards, ensuring compliance with upcoming regulations. “Data protection policies ensure that only necessary information, such as tax identification numbers, is utilised, while sensitive personal data is not stored or violated,” Viet said.

In Vietnam, the cloud market has been experiencing fast-paced growth, but it still lacks the robustness needed to match global standards. While Vietnam has been recognised for its innovative initiatives in the cloud sector and is on a trajectory of strong development, it ranks 53 out of 76 countries in the 2022 Cloud Ecosystem Index, according to German online platform Statista.