The climate for start-ups is often competitive. Since so many small businesses are competing for market share, it’s the exceptional business models that rise to the top. An important aspect of this is bookkeeping. Using cloud-based accounting software is a great option to bring efficiency and organization to this notoriously mundane and tedious process. Here are five reasons your start-up should consider adopting a cloud-based accounting system:

1. Easy Software Options

Handling accounting for a fast-growing business can be challenging. Cloud-based accounting software makes this task less daunting with the connected app ecosystem that allows you to find the perfect tool to solve your problem. When receipts and transactions pile up, having your accounting data organized is game-changing.

You can also integrate expense management tools, such as Dext, which automates most manual data entry using Optical Character Recognition technology. Once uploaded into the accounting system, receipts remain in the cloud, acting as your digital filing cabinet so you don’t have to worry about losing the original. This app is especially helpful if you find yourself drowning in credit card receipts.

2. Straightforward Invoicing

Cash management is top of mind for all business owners we speak to. If you haven’t yet modernized your invoicing process and are still doing it by hand, or with a platform that’s not integrated into your accounting system, it’s time to make a change. Without an integrated invoicing system, you might not have a pulse on your accounts receivable which directly impacts cash flow.

Cloud-based accounting software can help you collect the cash you’re owed through automated invoice reminders. Plus, you can automate invoicing for recurring transactions so that you can put some or all of your invoicing on auto-pilot.

3. Paperless Accounting

Paper records get lost, misplaced, or damaged quite easily, ruining the integrity of your business data. With a cloud-based system, you can go completely paperless, and have all your important information right at your fingertips.

By going paperless, you can also save money on toner, paper, and filing space, in favor of more valuable resources that can help your business grow. Read more about the benefits of going paperless in this Forbes article.

4. Potential for Growth

For a start-up, the ability to scale is critical. The only direction for a new business to go is up, so all resources and tools must be capable of rapid expansion.

Cloud-based accounting software is extremely scalable. They will meet your needs today and expand to accommodate growth later on. Most major software products, like QuickBooks and Xero, are intended to be functional for small businesses while offering sophisticated analytics and reporting options that are better suited for scaling your operations.

5. Access from Anywhere

There are many benefits to using cloud-based accounting software, but the ability to access ledgers and reports from any location is among the most valuable. Instead of existing as a program downloaded to a local server, you can log in from anywhere, on any device, whenever you want. Essentially, keeping your books in the cloud makes business fast and easy.

Plus, remote access allows you to create a seamless partnership with outsourced accounting resources without surrendering control over your books. Should you choose to turn to third-party assistance to better manage your finances without the steep investment that accompanies in-house professionals, your cloud-based program makes it simple to pass on the reins. 

Making the right choices for your business isn’t always easy. But remember, the right software can make all the difference. By selecting a cloud-based option, you can support your startup from anywhere, enhance your processes, and take steps toward growth.

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SBBC is a non-profit resource centre for BC-based small businesses. Whatever your idea of success is, we’re here to provide holistic support and resources at every step of the journey. Check out our range of business webinars, on-demand E-Learning Education, our Talk to an Expert Advisories, or browse our business articles.