To Cloud or Not to Cloud? That Is the Question.
- Jun 7, 2019
- John Delalio
If you are considering moving your business to a cloud accounting service, there are several questions you should first ask and answer. At the top of the list: “Do you want to focus on customers and new opportunities and not spend your time worrying about recordkeeping, taxes and regulations?” If you answered yes, congratulations, you are a business owner who doesn’t want to waste time on non-core activities. Cloud accounting can take care of the daily accounting functions allowing you to focus on what counts -- growing your businesses faster and easier.
Next question: “Why would you want the costs and hassles of hiring, training and managing accounting staff when a seasoned cloud accounting team can handle all your requirements on a low monthly, cancel-at-any-time, subscription contract?” Let's face it, it’s much easier to obtain (and cancel) a service versus hiring and terminating staff members. Also with cloud accounting, you get an entire team with different skills and strengths, not just one person who you ‘hope can do it all.’
Is your current bookkeeper essentially maintaining the status quo rather than helping you grow your business? Many small business owners have an outside bookkeeper who makes sure accounting transactions are recorded accurately and timely. And while many are happy with a bookkeeper, they also note that the financial statements may be correct, but the information really doesn’t provide much insight about the future or help them make decisions about how to grow the business. Access to proactive, actionable information, with advice from a seasoned accounting team, is really the key to a cloud accounting solution.
Speaking of advice, do you want to make decisions by making a ‘best guess,’ or would you rather rely on accurate data, industry-based analytics, and the knowledge from an accounting team with years of experience?
Let’s say you want to make a decision about hiring new employees. Wouldn't it be great if you could make that decision based on knowledge from financial projections that make you comfortable you can actually meet payroll? That, again, is the advisory benefit of a cloud accounting solution.
Let's change gears a little: If you are considering a round of fundraising, you can maximize your valuation by having accurate financials. This is another area where cloud accounting can help. Next, say you hit your fundraising target—well done! However, investors will want to know that the money is being handled correctly. Cloud accounting can provide you (and your investors) reliable and accurate information so they are confident they have invested wisely. This accuracy gained via the cloud can also lend credibility for subsequent fundraising rounds.
Broadening our horizons, cloud accounting can benefit foreign-based businesses that are establishing operations in the U.S. But how? Cloud accounting can quickly and accurately allow a foreign company to maneuver the often-daunting maze of our rules and regulations. A U.S.-based cloud accounting team is well versed in local laws, regulations, and customs. Also when the service is delivered by an accounting firm with national and international experience, you can be sure that expertise for complicated issues such as international formation, tax, and transfer pricing is readily available.
As a business owner, are you interested in utilizing the latest technology to run your business? Your competitors are, so the answer should be a resounding yes. Cloud accounting can really help in this area. Whether your technology consists of a pen and paper or you’re using a smartphone to run your business, cloud computing can make the process easier, more accurate and safer.
Ultimately, the question comes down to do you want to grow your business in the most efficient and effective manner? If the answer is yes, then look to the cloud.
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John Delalio is a Partner in the firm’s EA Outsourcing Solutions (EAOS) Group which provides outsourced Accounting, Finance, HR, and IT solutions to small businesses, startups, and family offices.
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