5 Reasons Cloud Accounting is Essential for Business Growth
It's the question at the top of any founder’s list - what will it take for me to succeed? What will make my company the one that defies statistics and continues to thrive? At Outsourced CFO, we believe that smart financial management coupled with the use of cutting-edge cloud-based software is the answer to ensuring business growth.
According to the latest data, up to 90% of startups fail. Across almost all industries, the average failure rate for year one is 10% However, in years two through five, a staggering 70% of new businesses will fail.
Cloud Accounting Benefits
Cloud-based accounting has numerous benefits, compared to paper ledgers and even most modern served-based software. This is why the advisors at Outsrouced CFO believe in using cloud-based accounting tools to ensure that your finances are in the best shape possible. Here are five ways in which the cloud leaves the competition in the dust, and can assist with your long-term success while ensuring business growth.
1. Real-Time Financial Insights
You’ve poured money into your startup - perhaps your own funds, or through partnerships or venture capital. Either way, it's important to stay on top of your finances so ensure that you know exactly what your money is doing. Enter real-time financial data courtesy of cloud-based accounting magic. With cloud-based tools, live financial information feeds directly into your reports, generating analytics and financial snapshots to give you a financial overview of your company.
With an overview of your finances available at a glance, you and your finance team can make effective decisions based on real-time data, giving you the speed and flexibility to adapt to market conditions as they happen. Your Outsourced CFO advisor can help you use this financial data to your advantage, generating management reports and financial projections that work for you.
2. Streamlined Processes and Efficiency
We all know that old saying - time is money. So trust the ability of cloud accounting to streamline financial processes and repetitive tasks, so that you save man hours and money.
Through machine learning and algorithm development, manual allocations become automatic, decreasing bookkeeping work, increasing organizational-wide analytics, and allowing your specialized team to focus on value-adds that support and drive bottom-line revenue. Less time spent on repetitive tasks means more time spent on growing your business.
3. Linking bank accounts and apps with ease
Cloud-based accounting is all about instant feeds and a connected network of service providers and apps. With cloud accounting software your allocated users can link directly to your company’s bank feeds, pulling bank transactions straight into your accounting system. Goodbye to manually uploading bank statements and hello to live access to financial information! This type of functionality also keeps financial information relevant and up to date as all transactions are uploaded to the cloud and refreshed automatically.
4. Scalability and Flexibility
You wouldn't buy a big SUV just to pop down to your nearest supermarket, would you? No, that's what a fuel-efficient hatchback is for. The same goes for software. Why buy a big, expensive system with more firepower than your company can handle? With the flexibility and scalability of modern cloud-based accounting packages, you can add to your software functionally as and when you need it, keeping vital operational money in your pocket.
Cloud accounting software also enables remote work in new and exciting ways, and opens up the field when it comes to gaining clients and retaining employees. Now you can work from anywhere with a solid internet connection, servicing clients wherever the need arises. Software updates can be developed and delivered faster and more easily in the cloud. This means you don’t need to worry about installing the latest version and you’ll get access to new features instantly.
4. Enhanced Security and Compliance
Many entrepreneurs worry that cloud-based financial packages are less secure than older bookkeeping systems. This couldn't be further from the truth. Cloud-based accounting software offers a number of cutting-edge security benefits, making it our first choice for managing financial data at Outsourced CFO.
Data is encrypted both in transit and at rest, protecting sensitive financial information from unauthorised access. Automatic updates and patches reduce vulnerability risks and human error, while access control mechanisms allow you to set permissions and restrict access to sensitive data as needed. Regular automated backups and disaster recovery options ensure that your valuable data can be restored in case of loss or corruption. Big cloud providers also have advanced physical security measures at their data centres, comply with industry standards and regulations like POPIA, and offer continuous 24/7 monitoring for unusual activity or potential threats. In short - their security is probably better than you could manage yourself!
Outsourced CFO (OCFO)
Transitioning your business onto the cloud can automate many manual processes and functions, increasing efficiencies and allowing access to real-time data, improving the strategic decision-making processes within your business. That’s why we think it's a question of when, rather than why, you are going to move your operation to the cloud. We offer a number of cloud accounting packages that are just right for you, whether you are starting out or your company has bigger, more complex financial requirements.
Get in touch with our team of professionals at OCFO today to learn more about how you can rethink, automate and scale your company using our expertise coupled with the latest in cloud accounting technology.
