Small Business Services

Is Cloud-Based Accounting on Your Horizon in 2016?

What do you know right now—at the end of December—about the state of your company’s finances as you ring out 2015? Can you quickly answer these questions?

  • What will your profit or less for the year be as of December 31?
  • What were your total payroll expenses?
  • What products sold the best?
  • How many invoices haven’t been paid? Any outstanding bills?
  • Have you received all of the products out on purchase order?
  • Are you running low on any items? Do you have too much unsold inventory?
  • Do you need to make any last-minute expenditures to minimize your tax obligation for this year?

Cloud-based accounting applications can answer these questions—and many more—in seconds.

Growth Necessitates Change

If you’re a sole proprietor who sells only a handful of products or services, you may do fine using a manual accounting system, though you might at least consider subscribing to a web-based invoicing system that offers basic recordkeeping tools.

But as your inventory grows in depth and volume, you need a better way to track it than by doing manual counts and recording numbers on note cards.

And how’s your cash flow? Are you finding it increasingly difficult to pay bills on time? Will you be hiring your first employee in 2016? Do you anticipate needing to start sending purchase orders in 2016? Are you finding it difficult to create the detailed reports you need in Excel and impossible to do so by combing through paper records and forms?

At some point, you’ll start getting farther behind in your work because of the time you must spend on managing your finances. You’ll lose money and risk damaging relationships with customers and suppliers. And you’ll lose direction. You started your business to fulfill a dream or solve a problem or simply to make more money.

While you’re struggling with debits and credits, invoices and bills, account reconciliation and time-consuming reports, you’re falling behind in your original goals and objectives. Your company is stagnant, or worse, begins to fail.

Pursue Your Dream

Cloud-based accounting isn’t a panacea. If you don’t know the basics of double-entry bookkeeping, there’ll be a learning curve. You’ll pay a monthly subscription fee. There may be times when you’re tempted to fall back on your old manual system simply because it’s familiar.

But online accounting solutions more than pay for themselves in the time they give back to you. They’re designed for use by non-accountants, built using simple language and a clear, understandable user interface and navigation scheme. More than simply maintaining records and processing transactions, the insight they offer through instant reports and other management tools can help you make smarter, more profitable business decisions.

And you don’t have to struggle alone. The best route to this new way of managing your finances is through an accounting professional. He or she can help you find the best solution and learn how to use it. Then you can get back to planning and growing and fulfilling your dream.

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