Small business owners wear so many different hats. This includes employing and training staff, developing new products or services, managing employees, interfacing with clients, marketing and sales, and complying with regulatory requirements. They frequently become so involved in running their company daily that they may overlook what’s highly essential: the cash flow and financial performance.
However, at this point in your business, tax deadlines, payroll, receipts, invoices, and records can be overwhelming you. We have highlighted some of the top problems that high-growth businesses face in financial management. Certainly, many of these issues may be promptly, efficiently, and affordably resolved by engaging with a third-party provider.
Business Accounting Pain Points
What are the most pressing problems affecting business owners’ financial management?
a) Business owners lack sufficient time and skills to finances
Small and medium-sized enterprises (SME) owners prefer to dedicate their time to expanding, client interaction, or creating new offerings. The subjects that are the furthest from their minds are accounting, finance, and tax administration.
According to the Business Outlook Report 2020, a joint commission by the ACCA (Association of Chartered Certified Accountants) and the MIA (Malaysian Institute of Accountants), 53% of small business owners lack confidence in their accounting skills.
b) A large number of manual inputs
Hand-processing data consumes time and exposes one to the possibility of human mistakes. Both of these contribute to the issue of late delivery and unreliable insights that result in confused decision-making.
c) Poor compliance management
The cost and complexity of compliance are rising steadily, and it is challenging to keep up with these changes using outdated systems that are not designed to be flexible or comprehensive.
All SMEs need Accounting Tools
You may probably save some time and effort on your financial management responsibilities by adopting smart accounting tools, regardless of how big or small your firm is.
What is Cloud Accounting?
You can save all your financial records using cloud accounting, often known as cloud computing or software-as-a-service (SaaS).
The cloud is a network of remote servers where data can be kept. You can use it to access information, make changes, and keep an eye on business trends from anywhere at any time.
What is Traditional Accounting?
Traditional accounting is referred to as ‘traditional’ since it is created for desktop computers rather than portable devices. It is installed on your desktop computer and stores data locally on servers.
The only way to access the data on that specific computer is through its file system.
Three key distinctions between traditional and cloud accounting
i) Flexibility & Accessibility
The most noticeable distinction is what sets them apart. A traditional accounting system only allows you to access your financial information from the computer on which your software is installed, whereas cloud accounting software allows you to log in and view your financial information securely using a web-based interface.
Cloud software offers data backups and maintains real-time updates for all data sources. You have to manually update each copy or file that includes your information while using traditional software.
ii) Security & Safety
Traditional accounting is exposed to serious security concerns and safety dangers since data is stored locally in specified on-premise devices. Any data breach could wipe out the accounting data stored on these devices.
Using the cloud, no disaster or data breach attempt at the local level may harm your data because all of your accounting data is hosted on remote servers.
iii) Infrastructure & Maintenance Cost
In-house hardware and IT infrastructure are necessary for traditional accounting. Upfront expenses and ongoing IT support are significant. Traditional accounting requires additional service and maintenance when demand increases or software becomes outdated.
Since all data and accounting activities are hosted offsite via the cloud, cloud accounting servers don't require specialist hardware and IT infrastructure. All of your software upgrades and maintenance requirements will be taken care of when you start a cloud accounting service.
Cloud Accounting - Built Perfectly for SMEs
For small organizations, this necessitates the need to identify methods for maximizing efficiency. Any chance to automate time-consuming operations could significantly lessen the time demands on you and aid in both short- and long-term improvements to your company.
How does StanleyCo support you?
StanleyCo provides a comprehensive range of accounting, taxation and business consultancy services to a wide range of clients ranging from SME businesses to major international corporations.
● Help you solve accounting pain points for your business.
● Recommend and provide full-service accounting, bookkeeping, auditing, and financial reporting functions.
● Assist you with a complete powerful cloud accounting solution.
Talk now to StanleyCo’s business specialists that can help you make informed decisions about your business and compliant processing.