How Cloud Accounting Software Benefits Start-up Companies

When starting a company, regardless of your educational background, prior work experience and inclinations, you quickly become an expert in the all-around dealings of a business whether it be handling transactions, planning and leading different departments or just simply being the decision maker on a daily basis. 

While most of the requirements of the job can be learned through experience and knowledge-building, making the right financial decisions is a different thing altogether. The ability to manage your finances from the get-go allows you to feed the lifeline of your company, setting it up for success. 

Luckily, cloud accounting software exists to help startup companies and entities with their financial management needs. By using cloud accounting for tasks such as bookkeeping, financial transactions and payroll management, you can easily get the right kind of accounting support without having to employ an accounting team during the early stages of your company.  

The Benefits of Cloud Accounting for Start-Up Companies 

  
Cost-Effective 

While it is true that availing accounting technology software for your company is quite the investment, you would see that when the software becomes a part of your subscription to your chosen cloud accounting tool, you could improve your cash flow or use it for more profitable ventures, making it worth-it.  

Add this to the fact that cloud accounting tools require minimal supervision while staying on top of your books, it becomes the best option for a starting company that does not have the capital yet to hire additional manpower. 

Secure Data 

With the notion of putting your company’s financial records “in the cloud”, it is quite natural to be hesitant as it sounds like you are opening it up to vulnerabilities. However, it is frankly quite the opposite. Regardless of where you store your information, the same hesitation as if you were to leave your information in paper form in a locked vault or room would still be present. 

Using that analogy, keeping your records on cloud accounting platforms stands a better chance of being more protected as your data gets stored on remote servers with advanced security and back-up features. 

Data Accessibility 

Traveling abroad for a business trip and need to get pertinent financial data that are physically inaccessible? This problem is eliminated easily by the cloud, as it allows you to easily access your data – anytime, anywhere.  

As a bonus, you can always pull up the most updated information, as can be demanded from an investors’ meeting or a sales pitch. 

Cash –flow Management 

It is a must that all expenses should be recorded for these to be deducted from your total income during tax time to maintain the accuracy of your profitability percentage; it could be very easy not to log the smallest of expenses. 

 Aside from these, you may have already forgotten to issue invoices that could greatly affect your receivables. With these problems combined, you are on your way to accounting mishaps. With cloud accounting solutions, you can integrate various financial systems into your tool, thus making usually time-consuming and tedious accounting operations done faster and more accurately. 

Need help with your Company Finances?   

When it comes to accounting, the services provided by an accountant are imperative. You have two options when it comes to this: hire an in-house accountant or outsource a business accounting service. You can check out our blogs if you want to know more about outsourcing your functions to a reliable partner.  

You can also grab a copy of our whitepaper Outsourcing: How to Make it Work to know how we can make outsourcing engagement work for your growing business.   

This post was first published on 08 December 2014 and edited 03 May 2024. Edited by: Aly Tagamolila