CloudCFO banks on SME digitalization

PHILIPPINE-BASED CloudCFO expect’s its client base of small and medium enterprises (SME) to grow amid the rising demand for digitalization.

“The demand is there,” CloudCFO Chief Executive Officer Mickael Cardoso Das Neves told a news briefing on Wednesday. “There is the digitalization aspect. In the Philippines, digitalization is actually ongoing. There is a need for it.”

The cloud accounting company has more than 230 SME clients, 80% of which come from the Philippines.

The company last week integrated artificial intelligence (AI) in its operations, automating expense transactions to keep up with the needs of business owners.

“What we’re doing is contextualizing a lot of what happens around the accountant treatment by bringing in a lot more information,” he said.

CloudCFO is also investing in AI training programs for its accountants.

“They’ll need to understand how technology works, how it delivers the output, and then advise the customer on the output,” Mr. Das Neves said.

“And for us to do that, we really have to elevate the job of the accountant. It’s not about credit-debit anymore. It’s about analysis, it’s about understanding systems, and it’s about taking that information and advising your customers,” he added.

Meanwhile, the country’s increasing adoption of a digital regulatory framework is expected to help CloudCFO boost its client base and simplify processes.

“As things become more digital, I think some of the barriers to full digitalization in some processes would start to kind of lift off,” Mr. Das Neves said.

Certain tax policy changes are also expected to boost CloudCFO’s client acquisition as businesses seek help on how to navigate such legal changes.

“We do acquire clients from tax updates,” the CEO said. “This is a huge opportunity for us because people completely off the grid are now inclined to register… You also have tax updates that make things more complicated.”

CloudCFO is also looking at tapping businesses outside the National Capital Region, but the company could be slowed by fewer companies adopting digitalization.

The firm is focusing on tapping the hospitality sector first, as well as major cities like Davao and Cebu.

“We can see that digitalization in Manila is probably more advanced than in the more provincial areas, aside from the big cities,” Mr. Das Neves said. — Aaron Michael C. Sy