How Cloud Accounting Benefits Start-ups
If you’re a start-up, looking for investment from anywhere and you aren’t using cloud accounting, you’re doing your business no favours and making your job so much harder.
Want to know why?
Here’s the five things you’re missing without cloud accounting in your corner
- Your competitors are outsmarting you at every opportunity
Before online accounting platforms existed, the corporate big wigs had the upper hand and got everything going. The small developing business was left in the shadows with little attention.
The big companies have the revenue coming in to support advanced IT infrastructures, develop and maintain their own accounting processes to get the investments they need to grow.
You don’t have that. Until you bring in cloud accounting because the providers have the advanced accounting features to help you manage your accounts efficiently.
- You can’t prove cash flow efficiencies
To get investors interested in hearing your proposal, you need reliable, accurate and most importantly, up to date financial reporting.
Real-time data showing your profits, losses, operational costs etc. You get that with cloud accounting and without it, you’re going to have many investors potentially interested, until they see outdated financial statements based on last year’s revenue, and only a guess at best on your future predictions.
With state-of-the-art cloud accounting, you get the real hard data that’s indisputable as it is updated based on current data and historical data to give an accurate representation of your cash flow efficiencies – or the lack of.
- You’re wasting time on tasks instead of growing your business
Be honest with yourself. How much time do you really spend on your accounts? Now put a price on that time. That’s money gone.
Every investor wants the assurance that the business manager, project manager and anyone else involved in the growth of their investment is actually working to generate profits. You don’t do that by focusing on back-office admin.
Start using the technology to buy yourself the time you need to put your business plan into action and reach your milestones faster.
- Team meetings are less productive
In your early days, it’s important for teams to be tight knit. On the same page and knowing exactly who’s doing what, when it’s getting done, deadlines, and the money that’s at stake. Team meetings are important but it’s not much good if only one person knows about the accounts, and there’s no collaboration going on.
With your accounts online, everyone on your team knows what’s what. You can hold your team meetings, use mobile phones, tablets, or laptops for everyone to see the figures you know about and they’ll instantly feel more involved with the business and in turn, will be more focused because you engaged with them. If you’re using contractors, or remote workers, they can even log into your account as a user and submit their timesheets, submit requests for time off and a bunch more stuff.
- You’re lacking digital security by keeping your accounts in-house
To go up against any competitor you need every advantage you can get. Trying to put robust security procedures in place to safeguard your data and comply with legislation is going to cost a heck of a lot more than outsourcing.
That’s what cloud accounting is. It’s outsourcing to a third party provider so you can manage your accounts online. It’s no different from email. You don’t store a server and use software to send an email, attachments, quotations etc. You use Gmail, Hotmail, Outlook, or whatever your email client is.
Like the cloud or not, you’re using it. You may as well use it even more to your advantage and get aboard cloud accounting, because the faster you do, the faster you’ll grow.