When a company has a culture focused on business agility, they tend to enjoy faster revenue growth due to improved efficiency and increased productivity. They are also better equipped to manage risks and make more informed decisions.
Business agility that complements with the right technology is what allows companies to respond to rapidly changing business environments. To adapt to external and internal changes, organizations must adopt tools that were designed to help streamline processes and improve workflows.
According to a study by Harvard Business Review, business agility was the number one driver for why mid-size organizations adopted cloud computing. Cloud computing accounting software is just one of the solutions that SMBs leverage to be more proactive in anticipating future challenges. Here is how making a move to cloud accounting improves business agility:
With cloud accounting, you have the benefit of scalability. To scale quickly and smoothly is one the principal things any company needs in order to be agile. This is especially true for start-ups and companies that are rapidly growing due to increased demands and changes in the market.
The cloud offers businesses the flexibility to scale up and down depending on their unique business needs. There’s no need to lease a bigger space or invest in new hardware. When you’re in the cloud, and you need increased storage, you only have to make a call or email your cloud services provider.
Business agility involves making cost-efficient decisions in response to business environment changes. The goal is to reach profitability faster. Compared to the conventional in-house accounting setup that requires expensive hardware, equipment, and space, cloud accounting is the more cost-effective option.
Traditional accounting costs you more in the long-run as you pay for system upgrades and need to replace outdated hardware. You also have to hire and train in-house staff to maintain servers. With cloud accounting, there are no upfront hardware fees because your data is stored on a remote server. Your accountant or bookkeeper will have access to it anywhere they have Internet access. The subscription fee you pay covers the storage space you need, and any software updates you require.
With a traditional accounting setup, your hardware containing all your data is likely stored in-house at your office. It means you don’t have access to it on-demand and neither does your accountant and anyone else who helps with keeping track of finances. Without easy-to-access to data, work is slowed down as people wait for those who have access to relevant files.
Cloud accounting makes your data available to you when you need it regardless of your location for as long as you have Internet access. Your accountant or bookkeeper can easily work remotely and help you make business decisions wherever you are. Because the cloud makes your data available and accessible, you can make informed decisions quickly.
Ultimately, the best way for any company to achieve business agility is to change their culture to one that embraces innovation designed to simplify processes. Work that is made easier doesn’t mean that it is less efficient; in fact, changes such as moving to the cloud not only remove the complexities that come with traditional systems but they also positively affect the bottom line.
And that’s the beauty of the cloud.
Until the next time,