Online Accounting For Tech Startups – 3 Ways This Helps You Scale
I expect the very last thing on your list right now is accounting and collecting receipts for your ecommerce bookkeeper! However, you do need to get this in shape before you start scaling fast - and this is where the beauty of online accounting for tech startups and all the wonderful apps that are available really come into their own... yes - we can make your life easier!
Helping You Scale
As a tech start up going for rapid business growth, I see you - burning the midnight oil, working all hours with next to no resources or help from anyone. You're exhausted already, you're trying to raise funding, develop your product and find someone who can actually manufacture or code it... you are relying on volunteers, friends and lean wages supplemented with lots of cake to keep the team motivated and scale your business... and yes that ambitious sales plan and user acquisition chart is looking quite a long way off right now!
So asking you to start collecting receipts and doing your ecommerce accounting will very likely make your head spin!
But did you know that Online accounting isn't just about bringing your accounting software into the cloud, so your financial performance is available anywhere at anytime... it's also about virtual access to your finance team and digital speed of communication. Many of our clients are location independent and true digital nomads - so we understand how vital it is to be digital first.
Once you bring your accounting software and services online, there is arguably no other business model that allows you to reap the benefits more than tech startups and digital ecommerce traders.
Let’s look into 3 ways online accounting can help your tech startup to scale.
1. Automate Your Accounting Process, Save Time.
As a tech start up your two biggest challenges are going to be:
- Cash (or lack of it) and;
- Your time / capacity creating a bottleneck in your business.
When you don’t have a lot of resources, and you, as founder are spread super thin, you need to make what you do have, work to your advantage. This means being savvy and taking the time to automate your vital processes like accounting, collecting receipts and reconciling your bank account. We do this to quickly cut back on overall admin and processing time - put simply if you invest time now to do this, it will make life alot easier for you to successfully manage your business.
An automatic accounting process bypasses the typical struggles of any tech startup and digital ecommerce business - specifically the high volumes of order fulfillment you might experience as your site goes live - plus the ongoing hundreds, possibly thousands of transaction line items pouring through your platform each month. All this plus inventory tracking and the need to get everything off the ground quickly (we know the pressure you are facing with your tight runway!) - yes - it is difficult to balance it all but possible with the right advisors and tools on your side.
2. Better Data, Better Insight, Great Decisions.
As a tech startup, you’ll be data first - all the way. Your whole world will be KPI's (Key Performance Indicators) and not just collecting data but needing deep insight and information from that data.
You'll quickly find that you'll have to be monitoring the right kind of metrics to get the best performance results from your business. Without clear reporting metrics, you won't be able to evidence your progress, forecast your potential success and make clear cut decisions that will transform your business growth trajectory.
Data matters. As a tech start up, data is your bread and butter.
Without it, you will struggle to make the right decisions and investors won't be very happy.
When your bookkeeping and accounting process are all online this means that you’ll get instant, often real time access to your financial performance and a steady stream of financial metrics coming in to you as Founder and CEO on a regular basis. This is vital when you want to be able to make the right decisions and to help you feel like you are in control.
The great news is that now there are a whole ecosystem of apps which integrate with your accounting software to deliver beautiful reports, dashboards and forecasting tools - all at the click of a button.
3. Focus On The Right Things, Free Up Brain Space.
Let’s be realistic here - you’re busy.
Life as a new tech startup Founder is very hectic - there isn't alot of spare brain space, time or energy to go around... You will often get so caught up in the everyday stuff, the "doing" that the focus on your strategy, your trajectory and roadmap for growth can get lost in all the noise.
It's estimated that only 2% of the population is actually proficient at multitasking. When we jump from task to task, we aren't really getting more done. In reality we're forcing our brains to constantly switch topics and focus - we end up working ourselves harder to do things at a lower level of quality and exhausting our mental energy too.
Online Bookkeeping and Accounting tasks may only seem small little tasks each day but just like any of those tasks you pick up and put down several times a day - when you are constantly task switching you aren't working in focused time blocks and making inroads on your business growth. You're just "busy" being busy.
When you finally decide to outsource to a bookkeeper your daily records and accounting work, it will take an enormous weight off your shoulders - all of a sudden you are freed up to work on your business, not in your business... and importantly - the time you get back you can use to GROW!
With an online accounting service, not only will your numbers be available at your fingertips, your brain will be free to focus on the important projects - you can finally start blocking out chunks of time to move yourself forward and work on the things that step change your business growth.
Make It Happen In Your Business
You have a responsibility to make sure that you are serving your startup well and that your most important resource - YOU - is being used most effectively. Delegate everything else that isn't mission critical, automate and use the technology available to help you do the heavy lifting that will get your business off the ground and soaring in no time.
Online bookkeeping and accounting is vital for any modern tech start up and digital ecommerce business. It helps you to free up time and energy to focus on other tasks in a very practical way. Trust us when we say it, you’ll be so glad that you automated your bookkeeping and accounting processes and delegated these important, yet time consuming tasks to an online accountant.
- Why not book a call to talk to us about how we can help you via our ecommerce bookkeeping and accounting services to move to an online accounting software that's simple to use and perfect for your tech start up or digital eCommerce ambitions.
- Reflect on how much time you would save each week, if you had the courage to invest in some virtual bookkeeping support and delegated the busy work to a professional.
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