Keeping unnecessary costs to a minimum is a priority for most people, but we all know how easy it is for regular expenses to creep up over time. Even when things are running smoothly, finding a way to save that little bit more can give you extra capital to invest in the growth of your business.
While there is plenty of advice out there to tell you how to save money on your business, one effective and often overlooked strategy is to switch to cloud-based accounting and support applications.
Cloud technology has many benefits beyond monetary but its cost-effectiveness is one of the main reasons that people often decide to make the switch.
Here are five ways cloud technology for accounting has the potential to save your business money:
1. Reduced equipment costs: Terminal based systems require equipment. This usually includes computers, monitors, software, data storage and more. Cloud systems are far more flexible and because many of the back-end features like data storage and security are included in the cost they usually work out cheaper. With a cloud system, all you need is a computer and a reliable Internet connection, there’s no need to invest in the extensive IT infrastructure that’s required for traditional terminal-based systems.
2. Maintenance and updates: Unlike a terminal-based platform, when you sign up for a cloud application the regular maintenance and updates are all taken care of in your monthly cost. This is very useful for small to medium-sized businesses that might not want to invest in an in-house IT department yet lack the expertise to manage the regular maintenance of their system themselves. With a cloud system, you get the benefit of a team of full-time experienced IT staff while the cost is minimal as it’s shared between all the platform’s users.
3. Scalability: One of the most appealing features of cloud platforms for small businesses and startups is the ability to scale up or down without incurring massive costs. Many businesses struggle as they take on more staff, putting stress on their IT infrastructure. This can lead to higher costs as they need to upgrade to cope with the extra users. Scaling up or down is not a problem with a cloud-based system where you can easily add and remove users at will.
4. Streamlined pricing: Most cloud-based systems come with a simple subscription-based pricing model which means you pay a regular monthly fee for everything that is easy to predict and budget for. With terminal-based systems, it can often be difficult to predict costs as issues and upgrades often appear unexpectedly and at the worst possible times.
5. Drive your business forward: The knock-on effect of all this cost-saving means that you have more money to invest in your business and a higher level of visibility that allows you to drive your business forward and increase profitability.
If you are keen to free up some cash to invest in your business, or you’re just looking for a way to reduce some of your regular expenses and streamline your business finances, moving to a cloud-based system is well worth considering.
Get in touch today to arrange a free consultation and learn more about how to utilise cloud technology for accounting to help you get on top of your process and save time and money.
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