For most startup founders, dealing with finances is the most stressful part of entrepreneurship. Not only is manual bookkeeping time-consuming, but it also carries a high risk of error—errors that can come with hefty penalties from the IRS.
Fortunately, the pen and paper method has been replaced by a new generation of cloud bookkeeping services. This means leveraging technology to automate the bookkeeping process and make data accessible anywhere, any time. In short, these firms automate the bookkeeping process to make the lives of entrepreneurs infinitely easier. Let’s take a look at some of the biggest benefits that come with using a cloud bookkeeping service.
1. Streamline the Record-Keeping Process
Say goodbye to those old shoeboxes stuffed with receipts. When you use a cloud bookkeeping service, the record-keeping process is automated and streamlined because all your accounts are connected. This means you can easily track and organize all of your business expenses without having to jot down every purchase.
2. Secure Your Data
One of the biggest downfalls of manual bookkeeping is that data is easily compromised. On the other hand cloud security is world class. Because data is stored on the cloud instead of a physical hard drive or in a filing cabinet, you never run the risk of losing your data in the event of theft or a natural disaster. With the cloud, your data is constantly backed-up, so as long as you have access to the Internet, you’ll always be able to view your financial data.
3. Strengthen Business Relationships
While you may think that old-school bookkeeping would lend itself to stronger customer relationships, that isn’t actually the case. This is because your relationships with your vendors, distributors, and clients thrive open communication, which is far faster, easier, and more transparent when backed by cloud bookkeeping. When working with a cloud bookkeeping firm, you never have to worry about souring a relationship because of missing receipts or overdue invoices because all of the data is constantly updated and easily accessible.
4. Keep Compliant
Perhaps the biggest benefit of cloud-based bookkeeping is keeping startups compliant. With manual bookkeeping, the risk of error is high because humans aren’t as good at catching their mistakes as computers are. Therefore, using software to keep your bookkeeping in order can help to prevent a lot of tax-time headaches and ensure that you don’t trigger an audit or penalties from the IRS.
To outsource your bookkeeping and leverage the power of the cloud, contact the experts at OpenDigits.