As the owner of a startup business, your first year will be the most challenging, tied up with day-to-day business operations and adapting to your new environment. On top of that, you’ll want to be involved in recruitment, bookkeeping, marketing, and sales.
According to Forbes, 90% of startups fail. It’s your goal to be the one out of ten who go on to succeed. For this reason, every decision you make is calculated. You rely on the guidance of experienced mentors to share best practices. You do extensive market research. And you make a list of the equipment, software, and tools you will leverage to ensure your success.
And because you don’t want to fail, you study innovative tools and practices that were designed to improve efficiency and increase productivity. One of the approaches you will most likely come across involves cloud accounting.
Back in 2015, Business Wire reported on how software company Exact partnered with PB7 to conduct 750 interviews with small businesses who had moved to the cloud. The data they collected revealed that those who embraced the cloud not only achieved 25% additional revenue compared to their counterparts who had not made a move, but they also doubled their profits.
Numbers like these prove how cloud-based business practices can significantly help startups succeed.
Raise Your Credibility
Storing your data on the cloud tells clients, investors, and other stakeholders that you are serious about data security. Each cloud accounting solution has its comprehensive security policy detailing how it protects your data. When you use traditional IT systems that are in-house, you could potentially lose all your data in the event of an on-premise attack, theft, or disasters such as floods or fire.
Maximize Your Time
For all companies, maintaining the books is a key responsibility. Approaching accounting in the traditional sense can be time-consuming for both you and your bookkeeper. Because cloud accounting automates tedious tasks such as confirming invoices, data entry and tracking revenue streams, businesses have far more time to focus on value-added work needed for day to day operations.
As a startup, you want to keep a close eye on your finances. You want to invest in what is necessary and think about luxury items later on when your operations are more stable. When you move your accounting to the cloud, you’re saving money because you’re not incurring the costs that come with maintenance and upgrades to traditional software.
Startups are described as businesses that have the potential to ramp up quickly. Cloud computing gives you that ability to scale and meet the growing needs of your business — with relative ease.
For the busy startup owner, keeping up with financials and bookkeeping responsibilities will be a top priority because revenues and profits will define success.
You want to keep your sensitive data secure with a solution that uses encryption and multi-factor authentication. You want to grow, and you want to grow fast, moving out of startup status to a business that is established with a strong number of employees and greater profits.
It’s all achievable with cloud accounting technology.
Until the next time,