The Benefits of Cloud Accounting for Your Business
If you own a small or large business, cloud accounting is the ideal option to avoid using a local network server to store, manage and process your data. In fact, it is the perfect way to attract investors to a new start up business. How and why? Well, cloud-based technology like this will help to significantly improve the efficiency of your startup or existing business. You will be able to access your financial information in real time. It also gives you leverage to compete in business. Below, you will find five ways that you can benefit from using cloud computing to get more funding from investors that appreciate the new technology.
- Improved Connectivity and Accessible Data
For a large company, it is probably easier to develop and maintain an internal accounting system because of the capacity to have large data services manned by experienced IT staff. A large company may also have the financial resources to purchase cutting edge security systems and expense hardware and software programs. For a new start up business, the opposite is true until cloud accounting provided that solution. With cloud accounting, small businesses are now able to compete with the same resources used by large companies. Cloud accounting provides improved connectivity and access to data through a monthly subscription to an online portal.
- Superior Management of Cash Flow
If you are a startup company looking for funding, it is important to demonstrate that you are able to effectively manage your cash flow since this determines whether you succeed in business or not. Investors will usually want to take a look at your cash flow statements in detail, reviewing your future expenses and cash balances. Without being able to afford an accountant, this would be almost impossible until cloud accounting provided the solution for dependable cash flow data for funding potential. Cloud accounting allows small business owners to monitor cash flow and to update data continuously. Therefore, current information is always available.
- Emphasis on Central Development
With cloud accounting, small business owners don’t have to consider a large, internal IT infrastructure. Cloud accounting allows small businesses to be as efficient as large business in being able to stay within budget and to use funds resourcefully. This allows the small business owner to focus on developing the core of the business, handling the most essential tasks first and foremost.
- Enhanced Teamwork and Alliance
Any business, including startup businesses have to make important financial decisions quickly. With cloud accounting, the key staff members within the business can communicate with each other and create an alliance to come up with the quick decision in real time. Cloud accounting allows data to be retrieved on any mobile device, phone or computer. Therefore, a partner or manager at one location can communicate with the owner at another location using an efficient cloud accounting system.
- Heightened Level of Data Security
Data security has been effectively managed by large companies already established until cloud accounting came on the scene. Small businesses can now compete in the data security arena, heightening their level of data security to provide:
- Devoted firewalls
- Automatic backup
- Data storage that is encrypted
Using cloud accounting allows small businesses to avoid the large servers that large companies use in their data centers. Investors will still be interested in offering funding to a small business with a cloud accounting system that indicates their data security measures equals to those of the large companies.