Update: This article was last updated on 8th May 2019 to reflect the accuracy and up-to-date information on the page.
The startups are slowly becoming an essential aspect of the nation’s economy. However, 75 percent of startups tend to fail during their early years.
The reasons for this could be manifold. Hence, it is important for every startup to make their move wisely. Especially, due to the competitive nature of the market, startup companies should constantly be looking for ways to get an edge over others.
However, to achieve the same, startups need a solution to cut down costs and streamline their business.
The startups using the on-premise setup for their business find themselves in an endless loop of hardware maintenance and replacement. They have to deploy an IT team to look after their issues, increasing the operational costs. The limitations of on-premise setup degrade the performance and make it hard for startups to sustain growth.
In order to manage a business, startup owners understand that their financial information should be safe and readily available as requests can pop up anytime. This can be achieved with the help of cloud computing.
Cloud helps in running a firm in an organized manner and makes tasks simpler, unlike manual accounting. Instead of creating responses with quick number crunching on paper, cloud accounting lets users have instant access to the accounting data in various formats.
Here are five ways early-stage startups can manage their finance and accounting while keeping their processes on track with cloud accounting:
Let’s explore in detail.
1. Remote Access and Multi-user Collaboration
The best part about cloud accounting is that it lets you access the accounting process remotely through the Internet. Hence, unlike the on-premise setup, where you have to go to the office to access the data, the data is available on your portable devices in real-time.
Another aspect of cloud-hosted accounting software is that multiple users can share and view files on the same cloud platform. All they have to do is login to the cloud and get access to the accounting data.
2. World Class Security
Cloud brings with it the top-class security features that guarantee that the highly critical financial data does not get compromised by unauthorized users. To ensure the same, cloud service providers deploy security safeguards like data encryption and multi-factor authentication.
In addition, the Business Continuity and Disaster Recovery process adds an extra layer of security for your financial data by identifying threats and backing up your data constantly on redundant servers located in separate locations.
3. Time and Cost Saving
Moving the accounting process from on-premise to the cloud leads to considerable time and cost savings for startups. As by opting for cloud services, the startups no longer have to purchase high-end hardware for their offices, they can reduce the capital expenses.
Moreover, as the cloud service providers take care of all the issues related to the hardware and infrastructure, the startups do not need to deploy an IT team in their office premises. This eliminates the IT-related hassles saving them time and operational costs.
4. Automatic Updates and Software Upgrades
Cloud accounting facilitates automatic updates to your accounting files and software so that you do not have to spend extra resources. You can utilize the same for other critical tasks leading to improved time as well as resource management.
All the updates are accomplished in the background so that you can continue with your tasks without interruption.
5. Better Business Decisions
It is imperative for every startup to make the right business decisions to achieve great heights. With cloud accounting, you can make better business decisions as it enables advanced analytics of the financial data.
Moreover, since the data can be accessed in real-time, you can keep track of the data and make business decisions on the spot, irrespective of your location.
Want to know more about the benefits of hosting your accounting process on the cloud? Connect with our Solutions Consultant.
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