Scale your startup with the right accounting technology

By May 15, 2019July 23rd, 2019No Comments

Take a moment to think about all the cloud-based services you use in your business.

Cloud storage helps with file sharing and documentation. Cloud payments make it easy to do business online. Cloud communication connects team members around the world. Cloud security keeps important data safe.

Cloud matters. Small and medium-sized businesses that use cloud apps grow revenue 30% faster than companies that don’t, says a UK study from Xero. Nine out of ten companies use cloud services in their day-to-day or are planning to do so in 2019, according to a recent IDG survey. A few even have mandates to move 100% of their business to the cloud.

Accounting needs to be on that list, too. Why? It makes bookkeeping a breeze… and it can actually help your startup scale.

Here’s some great advice from companies who’ve successfully scaled – and how your accounting software fits in.

Deliver data

“Use proper tools to ensure you’re making data-driven decisions” – Vincent Mifsud, CEO of ScribbleLive.

Your financial data is a huge part of your growth, and helps you make the biggest decisions for your future. Cloud-based accounting software not only makes it easy for you to track your revenue and expenses, but it can also compile your data together to spit out insights and forecasts, based on real-time data, that power your next big move.

Try tracking your most important data with the help of:

  • Xero: Link your bank account to your accounting software to automatically track each transaction.
  • Recurly, Chargebee or Chargify: Get insights from your subscription-based billing data without opening Excel.
  • Chartmogul: Track all your SaaS KPI’s in one place

Automate manual work

“Part of being successful means you have to decide what not to do” – David Lai, founder of Hello Design.

The words “startup” and “scrappy” go together like bacon and eggs. When things are small, your team needs to do a lot with very little. Automation takes a huge load off of the shoulders of busy teams. Think of the time and effort saved when your accounting software can take some of that manual work of processing transactions and creating reports off your plate.

Try connecting to data entry apps like:

  • Receipt Bank: Replace that expense spreadsheet with a tool that scans your receipts and captures the important information for you.
  • Hubdoc: Automatically import your receipts, bills, statements and emails into one system that handles the manual input work.

Boost your efficiency

“Take actions to continuously simplify the operations and strategy” – Arnab Mishra, President and COO of Transera.

It’s easy to get wrapped up in the details. As you grow, that list of details gets longer – and more complicated. If you need to update 15 different spreadsheets to answer a simple accounting question, for example – you’re creeping into the overly complex. Cloud-based accounting integrates with the programs and platforms you use every day to keep all your most up-to-date information in one place, for everyone on your team, no matter where they are.

Try integrating cloud systems like this with your accounting software:

  • Stripe: Make invoicing easy for both you and your customers with an integration that automatically feeds payment info to your accounting software.
  • Wagepoint: Spend less time on payroll with a service that takes care of paystubs and CRA compliance for you.

Measure twice, cut once

Most importantly, as you scale, you need processes and platforms in place that can keep up with you.

It’s easy to pick a free accounting platform (or one that’s very well advertised), but does it really fit your startup’s needs? Will it fit those needs two years from now, or will you have to switch to another system? If you don’t have the right platform for your growth from day one, you’ll have to transfer data down the road – and that’s a painful and costly process.

Just as you need to find a cloud drive with the right amount of storage available, you also need to find an accounting solution that can save you time and money, provide the best information, handle the right number of transactions, produce the right reports, unlock the right levels of access, add the right amount of security and the right integrations to fit your business… no matter how big it grows.

How can cloud accounting help your business save time and money while setting you up for the growth ahead? Let’s talk!

About Element CPA

Element CPA is an innovative accounting partner that’s 100% focused on helping Canadian startups and small businesses get their books in order, operate more efficiently and plan for the future. We handle the day-to-day financial operations that make your business run, tell the story behind your numbers and provide advice as you grow.