You have bootstrapped a startup and now the challenges involved in running it are surfacing one after the other. Finance management is probably your biggest tormentor, particularly when resource crunch is looming large. Now, you have three scenarios. One, you neglect to account outright and consider implementing it once your business starts flourishing. Two, you are a die-hard traditionalist and opt to invest heavily in an in-house accounting department. Three, you prefer digitalization and go for online accountancy software. With business success depending on the way you approach accounting, let’s factor in the outcomes of each scenario.
Scenario 1: Neglecting to account
They call bookkeeping as the universal language of business. When accurately done, bookkeeping gives you an exact idea where your business stands at any point of time and helps you identify opportunities and plug loopholes before they gain criticality. Running a business without accountancy is like driving a car blindfolded. However, far too many startups tend to ignore accountancy or prioritize other aspects of business over it, which leads to their undoing.
Scenario 2: An in-house accounting department
Setting up an in-house accounting department costs you in time, effort, and money. You need to put up finances for staff onboarding and salaries, which may not be feasible for a startup facing a financial crunch. Plus, the equipment, space, and other related costs will further strain your budget. Even if you brave it all to set up an in-house department, the results are not always favorable because manual bookkeeping is vulnerable to human errors, information gaps, delays, and inaccuracies. Many in your situation prefer outsourcing their bookkeeping to specialist firms to skip an in-house setup but end up paying up more than they bargained for.
Scenario 3: Online accountancy software:
Online accounting software is the best bet to cater to your bookkeeping needs and keep your business moving forward. It offers you the core bookkeeping capabilities minus the hassles, delays, discrepancies, and overheads involved in manual accountancy. Here’s how.
Spoilt for choices
You have bookkeeping programs for every need and budget. Although QuickBooks is the reigning incumbent, better and cheaper alternatives like myBooks are also readily available to elevate your bookkeeping experience.
Convenient to use
If you are at odds with numbers and technology, online accounting software is for you. The best QuickBooks alternative, myBooks features a user-friendly interface, making it easy to use and understand. Cash flow and income statements and other reports are automated. This means finances are efficiently manageable without knowledge of bookkeeping principles. Also, the invoicing is fast, accurate, and simple.
Cost-effective
The transition from manual to digitalized accountancy offers measurable cost benefits – a big plus for any startup. Put to the past your set-up outlay and ongoing expenses involved in a dedicated department. With online bookkeeping software, it’s only a modest monthly payment and you are sorted. In fact, QuickBooks online alternative like myBooks offers a standard plan at $4.99 a month.
Scalability
Scalability comes by default with online bookkeeping. The programs scale to your changing business needs, relieving you from additional investments and hassles.