The pandemic has brought a massive change in the way companies did business.
Startups have been one of the most impacted, and are grappling with insurmountable challenges. They are finding it hard to keep their businesses afloat, as per several reports, Indian startups laid off almost 20,000 of their workforce last year, and the lockdown announced in 2021 again has derailed their recovery, they are again experiencing salary cuts and layoffs which again has strained their businesses further.
They have been continuously trying to adapt to the new normal by innovation, lean operations, cutting real estate footprint, and largely cloud accounting outsourcing.
The pandemic has played the role of a catalyst for the growth of cloud accounting globally. In the last year, organisations have geared up cloud adoption due to a variety of factors, such as enabling remote working, seeking efficiency, and cost savings.
Likewise, India’s small and medium businesses (SMBs) present a huge untapped opportunity. Recently, a NASSCOM study revealed that over 60 percent of the SMB survey’s respondents have adopted cloud, nearly 50 percent are still at a nascent stage, and only about 15 percent are advanced users. The SMBs will also fast-track cloud adoption due to the pandemic, with many skipping the proof-of-concept stage.
With the rise in virtual work triggering the urgency for reliable, secure, scalable off-premises technology services, cloud accounting software is helping organisations be efficient, organised, and flexible.
The startups are finding it hard to justify hiring an accountant, and in many cases, they end up figuring out things on their own, which pushes them to look for cloud-based accounting software and trusted partners who delivers robust, scalable, and readily deployable financial solution to survive and be future-ready for any volatility.
The accounting software should provide a comprehensive set of services – cloud bookkeeping, statuary accounts, management accounts, payroll, smart services and taxation. It should provide them with an insight into their business’s financial health and evaluate their performance from multiple angles.
Cloud accounting outsourcing
Cost-cutting is one of the major factors for startups to consider cloud accounting outsourcing, as working with an accounting expert will free up their time and focus on revenue-producing activities.
Transitioning to the cloud can be implemented immediately. Being hosted by a service provider; the cloud accounting software does not require any time in installing and maintaining it.
Cloud accounting as a game-changer
Cloud accounting is emerging as path-breaking technology for small businesses during the pandemic. The strength of a business depends on how effectively and quickly it can manage critical information in today’s data-driven world. The software unifies the front- and backends, and enables companies to access the same financial records and books that updates in real-time.
Cloud outsourcing automatically updates all databases in real-time. It also prevents a lack of data consistency due to the absence of real-time information updating. Startups can operate seamlessly and be more creative and productive and save time.
Alongside, cloud technology can enable you to leverage smart automation, saving time, and eliminating paperwork. This will empower organisations in building more accurate data vaults and get greater, faster insight into the bigger picture to make informed decisions in a much smarter way.
The teams can benefit immensely from network automation to set up smoother processes. The cloud solution allows companies to combine accounting, financial data, and CRM through a fully integrated and backed-up solution. Critical data can be protected in a scalable solution that would continuously optimise security. It also takes care of compliance across multiple organisations, currencies, and international jurisdictions.
Cloud computation software will not only streamline and automate to reduce overheads, but will help to lower the cost of ownership, enabling companies to scale without making any investment in IT estates.
Cloud accounting outsourcing has championed the benefits for large organisations and a fast-paced digital environment, marrying digital transformation with the cloud, which can certainly be a game-changer in achieving a true competitive advantage for startups. They can certainly report higher profits and revenues.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)