There’s so much to get your head around when you start up a new business. From sales to marketing to getting your website or brick-and-mortar presence just right, the set-up phase can feel like a whirlwind. With so much to do establishing a new business, startup owners can feel too swamped to give their business financials much thought.
Setting up on the run, many startups simply turn to traditional pen-and-paper systems or spreadsheets to manage their incomings and outgoings.
What’s wrong with good old pen and paper?
Yet Australian Bureau of Statistics figures reveal one in four startups close down within their first year, in many cases due to poor financial management.
A recent survey conducted by Intuit revealed 42 per cent of business startups use spreadsheets to manage their finances, while 22 per cent use pen, paper and ledgers. And while these methods may feel familiar, the reality is they offer little in the way of bottom-line benefits.
Using more modern accounting tools can give you instant access to up-to-date financial data, which can be vital in helping turn your startup into a profitable venture.
Managing your business finances, 21st century style
Old-fashioned accounting methods are limited. Spreadsheets are usually saved on one hard drive only – normally on your desktop or laptop. Meanwhile, pen-and-paper systems are stored in a fixed location – your filing cabinet! In both cases, your financials are neither transportable nor easily accessed.
By contrast, 21st century cloud-based accounting software is easy to use and it’s accessible online, so you can use it anytime, anywhere and from any device. Track your spending, send invoices or obtain a snapshot of business performance data from your office, the café or even from the other side of the world!
Another benefit of cloud-based accounting is that you don’t need to install or constantly upgrade software to use it – you simply sign up for it via an affordable online monthly subscription.
Take advantage of the cloud
Making profitable business decisions is easier when you have a solid, real-time understanding of your financial position. Cloud-based financial management tools provide this, while also saving your business time and money.
Intuit’s QuickBooks Online, for example, allows you to manage your finances anytime, anywhere. From sending invoices and managing BAS and GST obligations to tracking expenses, sales and cash flow, using QuickBooks Online means all your financial data is accessible 24/7 from your laptop, smartphone or tablet. Best of all, QuickBooks Online is an affordable accounting system that costs as little as $12 per month.
Sleep easy
Starting up a small business can be super stressful. You may have business loans or staff you need to pay. Then there are the inevitable issues that arise around cash flow.
A whopping seven out of 10 startup business owners lose sleep over business worries, and concerns about business finances are at the top of the list.
Using cloud-based accounting tools to stay on top of your finances can help you sleep soundly and focus on what’s most important: making good business decisions that underpin growth and success.
If you’re a small business owner who still relies on the old pen-and-paper methods, now is the time to get up to date and streamline your accounting with online software.