Accounting Solutions for Early Stage Companies

Accounting Solutions for Early Stage Companies

The Struggle for Early Stage Companies

Early stage companies can often struggle to keep up with their day-to-day accounting requirements. This is especially true, as founders and management try to handle accounting in addition to all their other responsibilities. This challenge is compounded as business activity and business complexity increase. Accounting solutions for these types of companies vary of course depending on their industry; however, outsourcing accounting services can be beneficial in order to keep staff focused on core competencies and revenue-generating tasks.

Solution: Outsource

Nothing is more important or sensitive to your business than your financial position. That is why you should invest in both people with deep experience and an infrastructure with enterprise strength. Early stage companies can find solutions to their day-to-day accounting requirements by outsourcing the following services:

1. Transactional Requirements

This includes accounts payable, accounts receivable, bank reconciliations, payroll processing, asset tracking, etc.

2. Financial Control and Decision Making

This could be for a short term engagement to review processes, set up budgets or refine financial reports or on a continuing basis. Additionally, early stage companies can hire a consultant to act as the CFO/Controller that oversees daily activity, managing cash flow, communicating with tax advisers and presenting financial status at board meetings.

By leveraging resources and enterprise quality accounting applications, you will have the controls, confidence and focus to help drive operational improvements in your business. Companies in the early stages usually need to spend most of their attention on acquiring clients, developing business and performing their core competencies. The day-to-day accounting requirements can add to the stress of all the other challenges of being in the starting phase of growing your business. Deciding whether you should outsource or not depends, of course, on your situation and business; however, it undeniable that outsourcing services that are non-revenue generating can be extremely beneficial and valuable.

The right size company for AaaS?

What Size Company Benefits the Most from AaaS? Lavoie has had numerous conversations over the years with companies of all sizes regarding outsourcing or what we refer to as AaaS (Accounting as a Service).  AaaS is a form of outsourcing that combines people, process...
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Technology Drives Accounting Efficiencies

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Technology Drives CFO Success

Effective Virtual or Fractional CFOs Rely on Technology Whether your CFO is full-time or fractional, CFOs are a pivotal part of your company leadership, helping you make crucial financial decisions and leading the execution of those decisions.   What makes an...
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Accounting the Key Strategic Advantage?

Most companies that are thriving view accounting as a strategic function. Companies relying on bookkeeping have a hard time keeping up in today’s changing climate.   Bookkeeping by itself does not provide opportunities.  In a fiercely competitive work environment,...
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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...
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5 Myths around Outsourcing Finance Functions

Outsourced Accounting or Accounting as a Service (AaaS) provider can be the catalyst to take your organization to the next level.  For some SMBs, accounting is not looked at as a strategic function of the organization, but it should be.  It also shouldn’t take focus...
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Our CPA Day of Service

For the last six years, the North Carolina Association of Certified Public Accountants (NCACPA) have challenged its members to give back to the community by participating in the CPA Day of Service. The idea came originally from one of NCACPA’s Board of Directors...
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How to Improve Your FP&A Process Right Now

FP&A Teams Have the Wrong Focus According to a recent report by Adaptive Insights, CFOs want their employees to spend less time on collecting and preparing data and more time on forecasting and analysis. The survey revealed that financial planning and analysis...
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8 Signs You Might Need the Cloud

If you haven't already, it is time to consider switching over to the cloud. Gartner recently released a report on cloud computing where they predicted that by 2020, a corporate "no-cloud" policy will be as rare as a "no-internet" policy is today. In order to stay...
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Sage Announces Acquisition of Intacct for $850m

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The Rise of Cloud Computing

The Rise of Cloud Computing

Business Wish They Made the Shift 2 Years Ago

According to Intacct, 89% of firms who have already shifted to cloud-based technology wish that they had made the move two years earlier. The rise of cloud computing is arguably the single most important technology story of the past decade. During that time, countless companies have moved some or all of their IT into cloud environments.

Why?

Because quite simply, cloud computing has a lot of advantages over traditional on-premise accounting. With the cloud, a company can shift a lot of its IT responsibilities to a third-party vendor, while enjoying greater performance. Additionally, the cloud is the less expensive solution, since organizations don’t have to purchase hardware and only pay for the services they use as they go.

Related: 5 Top Benefits of Cloud Technology

In addition to requiring fewer human and financial resources to operate, business leaders are looking to cloud based accounting solutions because of the deep insights into financial performance that these solutions provide. Today, firms want to look beyond basic measurements and take into account operational metrics as a means to a far better view of how the business as a whole is performing. And to get that level of insight and awareness, more advanced accounting solutions are absolutely essential.

What Metrics Are Businesses Looking to Measure?

Cloud based accounting solutions can keep track of retention rates, customer acquisition costs, customer life time value, fluctuations in monthly recurring revenue and much more, all in addition to accounting basics. With information in hand that is tailored to the specifics of their businesses, leaders have a 360 degree view of the organization and how it is interacting with customers and clients. That depth of information enables more informed decision making and a nimbleness that leads to a serious competitive advantage.

Related: Data-Drive Approaches Guide Businesses

Why Are Businesses Not Making the Shift?

Clearly, vastly superior information is available to companies who use cloud based accounting and financial solutions, but not everyone has made the change.  Why??? Because change is difficult. We fear disrupting our business routine, we are comfortable with Excel and Quickbooks, we don’t want to bother with training, etc. But switching to a cloud based accounting solution really isn’t that difficult.

We have transitioned countless companies, both large and small, to cloud based solutions, and the one thing each transition has had in common is that EVERYONE has exclaimed over the ease of  implementation and staff training. Don’t worry! Go for it! The transition will be over before you know it, and like 89% of companies already utilizing the cloud, you will be wishing you had made the change years ago!

 

If you’re interested in learning more about financial planning and analysis in the cloud, check out our eBook below!

LEARN ABOUT FP&A IN THE CLOUD

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Time Management and Discipline are Key for Success

Time Management and Discipline are Key for Success

There are a number of important elements that ensure that a company’s accounting efforts are effective and efficient, and support growth and viability. Today, I want to take a closer look at two more key components: time management and discipline. Only by committing to both can a business leader make sure the company’s financial situation stays on track.

Time Matters

Dedicating the appropriate amount of time to various tasks can be challenging as decision makers have a lot on their plates on a daily basis. With so much going on, and with so few hours in the day, it is possible that some things can get pushed to the side. One task, in particular, that many business owners struggle with is managing the accounting work required to run business efficiently. Most owners are not accountants, so they naturally focus on tasks that inspired them to start the business in the first place. Without a good accounting support and detailed information, challenges wind up unaddressed, and can snowball over time.

One of the best ways to avoid looming accounting debacles is to set aside a specific time each week to focus solely on accounting matters. When owners have dedicated time each week, they will able to address issues early, before they become big problems. In addition to getting the jump on problems, decision makers will have insight into the firm’s financial situation at all times. This is essential for ensuring that companies take advantage of opportunities as they arise. There is no way for leaders to make the best choices for their organizations if they don’t have a clear and accurate view of their financials.

Related: 3 Ways to Drive Business Growth

Discipline is Needed

Obviously, setting aside time to focus on accounting issues is only effective if business leaders actually stick with that plan. Additionally, owners need to have access to accurate budgets and be able to regularly compare their actual results and make adjustments as circumstances change. Accounting software can make a big difference here. Comprehensive, cloud based accounting solutions allow the business owner and team to do the detailed analysis needed. This in in turn allows them to develop short, medium and long term strategies and track progress over time.

Dedicating the time necessary to manage financial matters, coupled with the discipline to adhere to a schedule and enjoy meaningful access to information, are critical for long term success. The companies that choose to tackle the hard work of time management and financial discipline are always better positioned for success than those that make accounting and financial management a low priority.

Can you think of any other key components that business leaders need to commit to in order to keep track of the financial position of the company?

SIX BEST PRACTICES OF TOP CONTROLLERS

Financial controllers are increasingly taking on the role of financial operating officer. You’re ensuring that finance runs smoothly and that there are not surprises on audit day.

But what does “running smoothly” really mean?

Download this eBook to learn six ways that today’s best-in-class controllers follow to successfully meet and overcome challenges in the profession. 

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IT Solutions for Staffing Companies

IT Solutions for Staffing Companies

Challenges Staffing Companies Face

When your business grows, you should celebrate, not suffer. Tell that to the finance team that’s trying to make your entry level accounting software and reliance on Excel spreadsheets work in a much more complex environment. Your employees may also be relying on spreadsheets to manage central processes. You may be struggling with disparate operating systems that create multiple versions of information and from multiple locations. This can in turn prevent your employees from having real time visibility into data. Consequently, this also prevents you from having real time insight into your pipeline, cash flow and business trends. Your burgeoning back office may be requiring more and more human and financial resources which you would prefer to deploy elsewhere.

Cloud Based Solution

If these are some of the challenges you are experiencing, you may want to consider utilizing an integrated cloud based management system. As a result, you have access to consistent and centralized data for you business. Most noteworthy, this allows your employees to view and share the same data – wherever they may be located. By connecting your employees throughout your organization to a single source of information, you can dramatically increase efficiency, reduce errors and eliminate redundancies.

 

Related: 5 Top Benefits of Cloud Technology

Cloud based management tools cost 77% less than onsite IT systems

You should consider switching to a cloud based management system if you have the following needs:

  • Integrate and automate your accounting and financial management systems
  • Access to information by job order/applicant/industry/placement/division in real time
  • Alternative payroll reporting and multi-location reporting
  • Automated A/P with online approval and payment

 If you’re interested in learning more about financial planning in the cloud, download your free copy of our eBook below!

The Nine Circles of Excel Hell

Discover why financial planning and analysis belongs in the cloud!

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