Startups: Why Cloud-Based Accounting Software Is Right For Your Business

Cloud-based accounting software is increasingly popular with businesses of all sizes, but these applications are particularly useful for startups. As a startup owner, you must focus your attention on driving growth and increased turnover, so it's crucial that you always have access to your new company's latest financial data. If you're struggling to keep on top of your accounts, or you're just trying to decide which type of accounting software is right for your startup, consider the following benefits of cloud-based computing.

Gives you access to your accounts from any type of computer

Cloud-based software will work with any Internet-enabled device, giving you the flexibility you need to run your startup. Modern professionals often need to work from a shared office, from home or on the move, so it's important that business tools and software can adapt to these environments. Software installed solely on one or two computers restricts how employees can work.

Mobile computers are increasingly popular, too. 58 percent of American adults have a smartphone, and 34 percent of mobile internet users mostly go online with a phone. Startup owners need instant access to critical financial information, and cloud-based accounting software is normally optimized for a smartphone or tablet PC. You can also track payment and receipt of invoices instantly in real-time, which can help speed up conversations with suppliers.

Lowers up-front IT and support costs

Startup businesses have to keep a close eye on all costs, as it can often take time before the company becomes profitable. As such, you need to look for every opportunity to save money. Cloud-based accounting software is a cost-effective solution for startups, and is generally cheaper than traditional, in-house IT products.

With cloud-based technology, businesses simply pay a monthly fee, which includes all support, hosting and maintenance costs. Upgrades to the software will normally take place automatically, and without extra charges, and there are generally fewer administrative fees. Your business will also avoid the hardware costs that you would normally have to pay for backing up crucial data, as suppliers normally include this task in the hosting agreement.

Allows you to work more efficiently

Cloud-based software often includes extra, useful features that a traditional accounting tool wouldn't offer. For example, multi-company access allows you to manage the accounts of different companies through one user profile. This works particularly well for entrepreneurs, who often set up several companies, and need a solution that helps them access all the financial information they need from one system.

Entrepreneurs and startup owners want to spend as much time as possible on the value-add tasks that will help them grow their businesses. Internal IT employees don't need to manage or support cloud-based software, so you can deploy them on other, more valuable tasks. 

Easy and intuitive for anyone in your company to use

Cloud software developers focus on creating products that are easy and intuitive to use because they understand that businesses don't always have a lot of time to train their people. As your startup business grows, it's important that new employees can quickly learn how to use your IT systems. Vendors supply cloud products with comprehensive user guides and support tools, so it's easier to allow more people in your company to update or get access to financial information. Few startups have a dedicated finance manager, but with a cloud-based product, you probably won't need one.

Cloud-based software from companies like helps you work in a collaborative way. You can easily share information in real-time with a bank manager, investor or accountant, without spending hours in advance producing lengthy reports. Detailed management information allows you to quickly look at financial trends, and you can often use built-in forecasting tools to model different business scenarios.

Startups need to focus on lowering costs and driving profitable growth. Cloud-based accounting software helps business leaders meet these aims, by offering affordable, easy to use products that are full of useful features.