Cloud-based Accounting Solutions Playing a Key Role in Financial Management
It was in the late 90s when small businesses used to manage all of their finances in manual books by using the conventional ‘pen and paper’ method. The next decade saw the shift to adoption of technology which we call as the ‘computers & desktop phase’.
During this time, usage of ‘excel’ gained prominence for data recording purposes. Practices have changed a lot since then.
Importance of Financial Management in Current Time
There is tremendous significance of financial Management for the success and well-being of small accounting businesses. According to a recent study done by an analyst firm, it has been found that a good majority of small accounting businesses are lacking the much-needed financial management skills.
The basis of conducting the study was to understand the ongoing trends & behaviors among small accounting businesses in regard to financial management. Around 94 percent of the participants said that they though they lack financial skills, they could definitely work upon them for improvement.
On the contrary, around 54 percent accounting business owners agreed that their first year of operations proved to be the most difficult one as they did not focus properly in financial management. As a result of that, such businesses had to invest more time in understanding the basics of financial management for more complex scenarios.
Almost 85 percent respondents said that they started their business simply by efficiently utilizing their personal savings, that further made financial management even trickier. It thus becomes quite clear why financial management is quite crucial for small accounting businesses.
However, 78 percent of such businesses confirmed that they would prioritize enhancing their financial management skills in order to be at the gaining end. Nearly 75 percent businesses confirmed giving priority to investment in financial management in order to gain better control of their business.
The Current Phase of Cloud and Accounting
In the past few years, there has been a gradual progression to deploying financial tools & systems on Cloud. With customers demanding a seamless environment across a range of devices, new & improved ways of managing finances allowing anytime, anywhere access are emerging fast.
Mobile platforms are being utilized for not just checking outstanding receivables but also raising instant invoices and checking the business health while being on the go.
Cloud-based financial management solutions such as QuickBooks caters to the varying needs of small and medium accounting. QuickBooks also bundles up a set of value addition offerings like Payroll and Sales Tax (VAT/CST) that simplify tax and compliance amazingly.
A large percentage of small businesses is fast experiencing the tangible & intangible benefits of these Cloud-based solutions.
Having told that, as we can see a positive trend in the adoption of Cloud technology, the practice of managing finance using a financial software hosted on Cloud is still in its most nascent stage in a few countries.
It’s possibly due to less awareness about the available Cloud tools and software and the potential these bring along for accounting businesses.
How Decision of Small & Medium Accounting Businesses Is Getting Impacted?
Creating accounting software products for small & medium accounting business is pretty exciting. however, it can be very challenging as well.
Accounting software providers keep framing suitable strategies from time to time in order to cater to the rising demands of customers.
Consider for example the case of QuickBooks – An Intuit product. In the year 2014, Intuit partnered with paybooks with an aim to deliver a comprehensive payroll management platform. The combined platform helped users to manage end-to-end payroll and compliances (including employee self-service & benefits).
With payroll integration, QuickBooks emerged as a unique, more comprehensive integrated Cloud based financial management solution comprising comprehensive payroll capabilities. This increased the accounting software’s usability & value many times in the market.
Cloud accounting solution providers though strive to develop a properly nourished ecosystem that effectively supports training and also drives adoption. This however is something in its developmental stages still.
So, the big question gets answered here itself. It’s typically the usability and benefits of an accounting software solution that governs the decision of small & medium accounting businesses.
Going for QuickBooks Cloud hosting thus has to be the first choice of accounting businesses looking for optimum gains from their investment in accounting software.