Cloud accounting can bring numerous benefits to a business, especially in its early stages of development. There are plenty of restrictions and a severe lack of versatility when it comes to the financial side of the business. Financial management almost always takes place in the office, in front of a specific computer that has a particular software installed. Secondly, if you’re in the field and collect payment, you’ll have to get back to the office before you can balance the books.
Probably the best part about cloud accounting is that you are not tied to the office. Since no software is installed on a stationary computer, managing your finances immediately becomes more streamlined and efficient. All the data is stored and centralized on a server. This is accessible at any time, and from anywhere there is an internet connection. All you need is a mobile device, such as a smartphone, tablet, or laptop,
This is only the tip of the iceberg. It’s up to each start-up whether they should consider a cloud migration or not.
Why Cloud Accounting
Before tackling the issue of when you should consider cloud accounting, you should take into account why and if it’s a decision that will positively impact your start-up. As mentioned before, this technology offers a great deal more flexibility regarding how and when you can manage your finances. Not only will this save you time but it can also aid with collaboration.
It is particularly useful, especially if you have more people handling your accounts. Cloud accounting allows for multiple users to access the information at once and coordinate with each other from various locations. The same thing is applicable if you’re working with a dedicated accountant as they will have instant and real-time access to your data.
Another significant benefit of cloud accounting, particularly for small businesses, is the lower costs as compared to the traditional software. On the one hand, there are no large upfront fees or update costs. Likewise, you can also save on costs due to less time spent on your accounts.
Centralizing your data in the cloud will also help you make better business decisions. It’s common for start-ups to run out of cash or make minor financial mistakes, only to see themselves fail. Having this information readily available 24/7 can spare you from falling into the same pitfalls.
In short, cloud accounting will help you stay on top of your business and plan. You can better analyze where your cash is going and what costs can be reduced. Entrepreneurs can better identify funding opportunities and shortfalls. As well, offer higher-quality information to lenders. They can also spend more time on other aspects of their business and have a better work-life integration for both themselves and their employees.
Bottom line – the best time to look at cloud accounting is even before you decide to launch your start-up. The quicker you make the transition, the less expensive it will be and the more you stand to benefit from it.
Until the next time,