In the not too distant past, only enterprises with the deepest pockets could afford the technology and data-backed insights required to keep them competitive. Technology vendors focused on products for large organizations, leaving small- and medium- sized businesses to grapple with boxed software packages and a hodge-podge of digital and manual systems that never quite synced together or drove results. The ultimate in digital efficiency was out of reach—until the emergence of cloud computing helped level the playing field.
Let’s take a look at how, thanks to cloud technology, growing companies are able to leverage the same computing power and cutting-edge capabilities of much larger enterprise organizations, and break through to new phases of growth.
The Impact of the Cloud
According to the Deloitte report, Small Business, Big Technology: How the Cloud Enables Rapid Growth in SMBs, a “younger” company faces three challenges across its growth cycle: access to capital and skills as they start up, scalability and management control as the business grows rapidly, and optimization and innovation as it becomes mature. Eighty five percent (85%) of survey respondents believe the cloud enables their business to scale and grow faster.
Taking a closer look, SMBs using cloud technology to overcome growth challenges report 26% faster growth and are 21% more profitable. What’s more, cloud technology enables these companies to:
- Scale and grow (80%)
- Access new markets (77%)
- Beat competitors (66%)
- Focus on strategic projects (75%)
Let’s consider a growing company’s financial and accounting organization. They may have started out with software programs like QuickBooks and Excel to help them manage day-to-day transactions and periodic reporting, but soon enough experienced their limitations. The addition of new employees, new entities or locations, and new business requirements signaled the need for new capabilities, more efficiency and control, and an overall more strategic level of support for company expansion. Either they find a “better way” to operate, or they risk losing momentum, both operationally and competitively.
Rather than finding a way to finance the implementation of a sophisticated on-premise financial system (or discovering such a system is severely cost-prohibitive), this growing company can allocate its resources of both time and money more effectively. With cloud computing, they can at once afford and implement highly scalable software solutions that solve their operational problems and provide the computing power they need to take their business to the next level—and compete with larger companies for valuable market share.
How Cloud Accounting Solutions Support Your Growing Business
When you deploy cloud-based solutions to streamline your business and provide the data and tools even the smallest finance and accounting team needs to maximize their efficiency, you’re setting up an infrastructure that’s designed for continued growth. You’re not limited by yesterday’s technology—and your budget can support ongoing transformation. Here’s why:
- Cloud software solutions are hosted on your vendor’s servers and are accessed over the web, so up-front, maintenance, and new user costs are low. You don’t need to purchase new hardware to support your system and you can rely on the technical expertise and system/user support provided by your vendor’s specialists—not your internal IT staff.
- Anytime/anywhere productivity. Accessing data and tools through the internet means users can work around-the-clock from any connected computer or device, saving time and making work more flexible and convenient for everyone.
- Strategic focus. Automation simplifies what was once cumbersome, manual and paper-based back-office work, leaving your employees with more time to focus on higher-impact projects—like getting real-time reports to managers so they can act fast on new opportunities.
- New customers, new partnerships. You’ll be able to meet the expectations of tech-savvy customers as well as vendors using the latest technology to run their operations.
Not only are cloud accounting solutions highly configurable to work with your existing (and changing) processes and systems, flexible APIs make it relatively easy for different cloud-based (and even some on-premise) programs to be integrated, bringing a whole ecosystem of software and tools to your fingertips.
Learn more about cloud accounting and how it can help your business grow in an ever-changing marketplace, contact our team!