10 Benefits of “Accounting as a Service”

10 Benefits of “Accounting as a Service”

Small and medium-sized businesses (SMBs) are often driven by a passion or cause – not spending hours on accounting and financial management.

SMBs face many financial challenges that affect cash flow including hiring new employees, increasing profits, employee healthcare, growing revenue and properly managing expenses.

Fortunately, technology has changed the game for SMBs. In the last decade, new technologies have enabled SMBs to compete with large enterprises.

Technology is only part of the equation.  Accounting as a Service (AaaS) is a hybrid solution that combines services with software; thus, the client can enjoy the benefits of professional expertise and leading cloud technology. This lays a great foundation, allowing companies to focus on revenue generating activities.  They are able to focus on future growth instead of being stuck analyzing the past.

10 Benefits of  Accounting as a Service

  1. Real-time visibility to your business performance via dashboards
  2. Reduce financial risk
  3. Increase productivity
  4. Be audit ready at all times
  5. Improved process flow and automation
  6. Eliminate staff turnover
  7. Cost savings
  8. Increased security
  9. Reduced IT headaches (upgrades and maintenance)
  10. Integration with your other applications to eliminate information silos

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A Solid Accounting Strategy Is Key to Your Success

A Solid Accounting Strategy Is Key to Your Success

Financial Planning and Analysis (FP&A) Challenges

Entrepreneurs have to cope with many unique factors that come along with running a startup firm, and many are directly related to financial management, accounting and reporting. Failing to get these matters right can lead to significant challenges such as compliance and budget. Thus, having a solid accounting strategy is key.

Fortunately, there are ample remedies available that are specifically targeted at helping entrepreneurs tackle these challenges. Many solutions come in the form of affordable cloud-based software solutions that are administered by an outsourcing firm. In order to discuss the benefits of cloud-based accounting and reporting and outsourcing, it is important to first identify the pain points and challenges that startups face.

No Foundation

Startups rarely have a strong foundation of accounting practices in place. Typically, they start from scratch. Building an accounting strategy from the ground up is challenging for financial professionals, much less for individuals with no financial training. Creating an accounting strategy without understanding what is required can seriously hinder growth of your business. Outsourcing your accounting work to a firm that utilizes a cloud-based accounting and financial management software, gives you real time access to all the information you need to react proactively to your changing business environment. Outsourcing the financial piece of your business to experts will allow you to focus on developing your product and getting it to market.

Related: Accounting Solutions for Early Stage Companies

Tight Cash Flow

New businesses tend to have a minimal safety net of funds to fall back upon if they experience an unexpected cash shortfall. If accounting experts are running your books and analyzing your financial performance with cloud-based solutions, you can be assured that you will have the information you need about your companies financial situation. Thus, you will then be ready to raise capital or obtain a line of credit to cover the shortfall or even avoid experiencing a shortfall at all.  For startups, adhering to a budget and managing cash are critical to your success

New to Compliance

The financial and accounting regulatory compliance statutes for startup companies can be extremely complex and difficult to meet. Entrepreneurs are often new to the matters involved, putting them at a disadvantage when trying to maintain compliance. Your outsourced accounting firm has the resources and experience to ensure that your company is in compliance so you can focus on what you do best.

No Accounting Department

Startups often begin with a small team of individuals who are passionate about a product or service, but who may not have experience running the financial side of things. But far too often, the founders end up shouldering these responsibilities anyhow, because they cannot afford to staff a financial team. By outsourcing your accounting and financial management needs to the experts, you mitigate errors and inefficiencies involved with doing it yourself, at a fraction of the cost of an in- house accounting team.  Services are scalable, so you utilize only what you need to get the job done.

Starting a new business is exhilarating and terrifying at the same time. Consider utilizing cloud-based accounting and financial solutions managed by experts so you and your team can spend all your time building something wonderful – your own business!

3 Biggest Tech Trends For Small Businesses in 2015

3 Biggest Tech Trends For Small Businesses in 2015

Entrepreneurs are business savvy. They are passionate about success and understand what it takes to grow their companies. Keeping their business at status quo is not an option. Staying ahead of the competition often involves significant investment in technology tools to help manage daily business operations.

Inc.com recently wrote about a survey conducted by Palo Alto Software, where 500 small business owners were asked about their technology habits and plans for the future. The top 3 tech trends they found were:

1. They’re Spending More on Tech

According to the survey, 81 percent of respondents said they were planning on investing more in the coming year. Additionally, 48 percent said they would be willing to spend more than $5,000 in the next coming year on technology. It’s safe to say that technology is valuable for businesses and continues to be an investment many are willing to do.

2. They Operate in the Cloud

Small businesses favor the cloud as evident by the survey that found that 37 percent ran over half their business in the cloud. Moreover, 44 percent said they use more than two cloud-based tools for their business operations. The cloud is on the rise due to the many benefits it offers business owners such as real-time data, remote access and system integration.

3. They’re More Mobile Than Ever

Palo Alto Software found that 89 percent of small business owners use their smartphone to run their business. Furthermore, 63 percent said they are planning on increasing their usage of mobile devices in the next year.

Haven’t Embraced Technology Yet? Now is the Time to Reconsider

If you are a business owner that has not embraced technology, my advice is to reconsider. Start by examining your business processes. Think about how technology could free up time and resources. Look at all the non-value add things that you do every day.

What if you could automate the majority of those items?

Imagine if the time and those resources wasted on non-value added activities were focused on growing your organization. Cloud technologies have brought enterprise technology to small businesses. Solutions are affordable and scale as your business grows. In addition to cost savings, newer technologies bring a wealth of new information that enable you to better plan for growth. Instead of focusing on the costs, examine the opportunities that technology will bring your company.