5 Reasons to Implement Cloud Accounting Software Now
We speak to a lot of accountants here at Futrli. A lot of accountants. You are all unique and beautiful people but there is a common thread through almost all of the conversations that we have around implementing new cloud accounting software solutions.
Time.
Time is the biggest roadblock to accountants at the moment (and probably always will be). However, the time to act is invariably now - here’s...
5 Reasons To Implement Cloud-Based Accounting Software Now
Time is ALWAYS going to be an issue
If you think you don’t have the time right now, is that really going to change next week? Next month? Next year? There is always going to be work to do, it’s not going anywhere, and let’s be honest - you wouldn’t want it to.
Ultimately, it’s a matter of priorities, not time. It’s a cliche but one that holds up. There are 24 hours in the day today, and there will be 24 hours in the day 6 months from now. So where is the extra time going to come from?
There are 3 reasons that you’re looking to implement a new cloud accounting software solution; it’s either going to:
- help your clients
- save you time
- make you money
- all of the above?
(If it’s not doing any of those things then you probably shouldn’t be implementing it, right?)
No matter which of those have brought you to the decision to bring in a new tool, it’s definitely the sooner the better, especially because…
There is a lag between cloud accounting software adoption and profit
Whether we’re talking about time or money, you always need to invest some initially before you start winning it back later on. It also doesn’t matter if you’re implementing a new software solution, hardware, process change, workflow, staff member, or tea kettle… the sooner you start, the sooner you profit - whether that be profiting in time or money (or tea).
Early adoption allows you to hit the profit stage sooner - if you wait until you really need the solution before pulling the trigger then you are waiting until the most critical moment to make the investment. It is better to invest early and reap the rewards when you need them.
Especially in the software world, jumping on the bandwagon early comes with its benefits. Prices are often lower while the product is being worked on and improved which means that the initial investment is lower and the breakeven point much sooner.
Also, this profit gap can be decreased by getting on the train early because…
The sooner you integrate accounting programs into your workflows the more seamless it will be
Ideally, financial management and cloud accounting software solutions would be built into your processes from the ground up but unless you’re a brand new start-up, that’s not going to be possible. The longer you wait, the more established older, less efficient processes are going to be.
Clients don’t like change, even when it serves to benefit them greatly. They like things to stay as they are, even if that means a state of vaguely organized chaos. Rip that plaster off. The longer you leave it more set in their ways your clients will be and it will be more of an ordeal. Don’t ask either, tell them that you’ve found a better solution and it’s going to better their business. You’re the expert, be prescriptive.
Your colleagues are creatures of habit as well, they may be susceptible to getting stuck in ruts. How many times have you caught a colleague doing something manually that they could have automated? Or bruising through a meaty Excel spreadsheet rather than using the new cloud solution you’ve got? Get them to adopt new cloud accounting software solutions early so they don’t feel left behind and the leap isn’t so big.
However, not everyone in the industry is adverse to change because...
Your competitors ARE implementing now
It’s a competitive market out there; everyone’s playing the same game so to level the playing field you’ve got to make sure you’ve got the same equipment.
I’d use a sports metaphor here if I knew any.
We can all see that cloud accounting software is the future of the industry and, let’s be honest, it’s been the present of the industry for a while now as well. The marketplace is evolving and adapting - survival of the fittest actually means survival of the most adaptable to change (I studied evolutionary genetics at university, don’t fight me on this).
This has never been truer than it is now either. 2020 really cemented the critical need for cloud solutions in your workplace and your workflows. The people that thrived in 2020 were the ones who leveraged technology to aid their businesses.
If you need any further proof of this, look at where the early adopters of behemoth apps like Xero and Dext (Receipt Bank) are today.
Every day your competitors are implementing these solutions and if you’re not, you’re falling behind. This is a problem because…
Your clients need cloud based accounting
It’s a risky time for any business owner at the moment, your clients need you. As I’ve written about before there is a huge knowledge gap between what the average business owner knows about their finances and the risk that poor cash flow management poses to them. This is another reason to be the leader - your clients don’t know what they don’t know and often they don’t know what they need.
Forming good habits with small business accounting software like daily bookkeeping and thinking about cash flow on a regular basis means that they’re much more likely to work. The more you can get your clients doing these things, the healthier their business will be in the long run. Let’s not forget that protecting your clients protects your revenue as well.
Don’t feel overwhelmed, there is no need to dive headfirst into the deep end with your eyes closed but if you start today then you’ll be closer than you were yesterday. Take everything one step at a time and make sure to work with your clients, colleagues, and suppliers to make it happen.