The following SC&H Group blog post reveals how technology startups and fast-growth companies are using cloud accounting applications to achieve a powerful competitive advantage in today’s business landscape.
For today’s emerging technology companies, the business landscape is complex, competitive, and ever changing.
Navigating Today’s Complex Startup Landscape
For instance, startups are growing more quickly than in previous years, according to a recent Kauffman Foundation report. As a result, they are displaying a high degree of scalability and increasing demand for operational support.
However, while rates of startup growth and technological innovation are rising, only about half of today’s 28 million small businesses are surviving more than five years, according to a recent Bureau of Labor Statistics report. In fact, survival rates are plummeting from 78.6 percent after year one to only 51.4 percent after year five.
Meanwhile, technology is transforming the speed, approach, and performance of business processes and operations, changing the way emerging companies interact with both employees and clients. Consequently, embracing advanced technology is no longer an option for startups—it’s a requirement.
Gaining a Competitive Advantage with Cloud Accounting Applications
Embracing advanced technology has become particularly valuable in corporate financial functions, where enhanced efficiency and decision making can drive overall business success.
Therefore, many executives are exploring and integrating cloud accounting applications to meet business demands; streamline financial management processes; and improve their company’s security, flexibility, and mobility. An estimated 78 percent of emerging companies will be fully adapted to the cloud by 2020, a 41 percent increase from 2014, according to an Emergent Research report.
Although on-premise accounting applications can be effective during a startup’s initial development, cloud applications are often a more scalable option for emerging business. When fully optimized and integrated with a company’s operations, cloud applications have been found to deliver 1.7 times greater return on investment compared to on-premise applications, according to a recent Nucleus Research report.
Achieving Greater Mobility, Efficiency, and Security
Furthermore, cloud accounting applications are providing emerging businesses with complete mobility, allowing financial information to be easily accessed and shared. With this capability, executives are enjoying enhanced collaboration, as well as an efficient and cost-effective way to back up files.
As an Internet-hosted service with process automation, cloud applications are also streamlining processes, making it easier for executives to focus on key strategic tasks. And, with less resources devoted to traditional IT infrastructure, cloud accounting applications are helping emerging companies to cut costs, free up capital, and provide flexibility for operational and financial needs.
Most importantly, cloud applications are providing executives with improved financial security by offering restoration, maintenance, and data protection—all essential functions for startups working to raise funds and accomplish long-term objectives.
Ultimately, technology startups and fast-growth companies are investing in cloud accounting applications to remain adaptable and powerful competitors in today’s fluctuating business landscape. By fully optimizing and integrating these applications, executives are improving accuracy, efficiency, and bottom-line results.
Want to learn more about how cloud accounting applications can benefit your business? Contact SC&H Group’s CFO Advisory Services team today to discuss how Intacct cloud financial applications can enhance your long-term success with improved efficiency, accuracy, and flexibility.