Cloud practices bring unlimited opportunities for businesses with streamlined processes and automated workflows. A recent report by Xero has suggested that firms with cloud practices in place have reported healthy growth in consecutive years. Compared to traditional firms, cloud-based firms add five times the amount of clients. These survey results show that, with the ability to increase their revenues and service a client base that extends past their immediate area, there’s no limit to what connected cloud practices can do.
Here are the signs that indicate your business may have outgrown the traditional accounting practices.
5 Signs it’s time to make the switch to accounting software
1. A booming business
Spreadsheets can be the biggest hurdle to business productivity. Because while the world keeps evolving, spreadsheets fails to keep up. As your business grows in terms of clients and employees, segregating responsibilities and access to important documents can become tedious task. Hence, accounting software comes with two-factor authentication security systems and user restrictions configurations.
2. Need for information on the go
With remote working slowing becoming the norm for workplaces, different teams and departments may need access to a particular data at the same time. In order to keep your project on track, you need a cloud application with an infrastructure that can support information on the go. This will avoid delays in making business decisions and managing cash flows. An accounting software provides a range of tools and analytics, so you can obtain detailed summaries of your profit, expenses, cash flow and more.
3. Repetitive manual tasks becoming time-consuming
As a small business owner, you juggle between multiple tasks and deal with conflicting priorities in a day’s work. While administrative tasks, such as inventory tracking, processing transactions or invoicing customers are necessary, these are often repetitive and can be a huge time waste. With an accounting software, you’ll be able to automate most of these tasks. This makes room for you to spend more time on important tasks for handling your business and building better strategies.
4. Manual errors becoming common
It is a matter of fact that nine out of 10 spreadsheets (88%) contain errors, and not a news that the number of errors that occur can easily build up when working with spreadsheets. While it inevitable that seemingly minute mistakes occur time and again, these can create adverse impacts on your business—such as inaccurate statements or lost tax credits. An accounting software is designed to eliminate errors and notify you in case of an error from a different user.
5. Lack of a proper accounting system
While many small business owners are highly skilled or experienced in their field, handling their own accounting and bookkeeping aren’t something they are comfortable with. A firm understanding of finances and small operations of business should not be the headache of a business owner. Accounting software comes with automated tools to perform complex financial calculations and generate charts and visual interpretations of data for individuals to understand their business better.
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