Paychex: cloud accounting give start-ups a competitive edge
Startup companies are constantly on the lookout for ways to gain a competitive edge. To manage a young business and find new investors, entrepreneurs know that reliable financial information must be readily available. Informational requests can pop up at any time. Rather than formulating responses with quick number crunching on paper, cloud accounting systems allow users to immediately access financial data in a variety of customized formats. With online accounting software, startups find the competitive edge they need to keep up with the fast pace of the business world.
“Mobilize” Accounting
Cloud accounting can “mobilize” data by providing real-time monitoring of income and expenses, even when small business owners are away from the office. Compatible iPad and iPhone apps can be downloaded and installed on a smart device, giving users the ability to view year-to-date sales, generate new invoices, and scan in expense receipts. The apps provide synced data at users’ fingertips in meetings, on conference calls, and at trade shows.
Manage Cash Flow
Cash is vitally important, especially in the early stages of a business when significant startup expenses are required. Cash balances must be frequently reviewed and future expenses prioritized. For companies without an online accounting system, constructing a cash flow statement can be daunting. Using a cloud accounting system, cash flow is continuously updated once a starting balance is entered. As income and expense items are reported by individual users, cash flow is automatically adjusted. Management can monitor the current balance of the cash account and take comfort in the knowledge of just how much liquidity is available for immediate investment in business opportunities.
Produce Professional Reports
The day-to-day operational demands of running a small business keep many owners busy. Sitting down to create professional financial reports for individual customers and investors is a time-consuming task that is frequently pushed off. Yet, when financial information is requested, or a business plan is needed, it is essential for management to put their best foot forward and produce quality financials. Online accounting software is designed to easily help startups produce accurate financial reports which look great and can be customized to meet a variety of requests. Invoices may also be generated for customers both in the office or using the iPad app while on a job site.
Enhanced Data Security and Availability
Few startups can afford the high-tech data security measures employed by larger companies utilizing full-time IT staff and internally built systems. One of the many benefits of today’s online accounting systems is that cloud data storage helps level the playing field for smaller companies. Cloud accounting systems feature high-level safeguards with dedicated firewalls to ensure that accounting records are safe and secure at all times. Servers are housed in special data centers built using redundant Internet connections, routers, and power generators to guarantee uptime. These data centers also provide startups with offsite file backup. Should the home office or company headquarters ever become inaccessible, remote access to financial data is always available.
https://www.paychex.com/articles/finance/cloud-accounting-gives-startups-competitive-edge