The Lowdown on Cloud Accounting + Tips for Startups and Entrepreneurs

If you’re a startup or entrepreneur, you’ve gone into business because you have a passion for a particular field or role. Maybe it’s a killer new app for businesses or maybe it’s a consumer-focused game changer - or something else entirely. In any case, you’re not enjoying the accounting headaches that come with running your own business. The thing is, it's arguably one of the most important functions of your business. So how can you make these processes simpler?

To start with, as creators of cloud-based financial tools for small business owners with 0-9 employees, we’re partial to the cloud. You can export your data at any time, it’s always secure, and you can access it from wherever you are. Plus, because you don’t need to install any software, it’s usually free or very low cost. You just can’t get this with desktop software, which is at risk of virus, stolen computers and crash.

The cloud is seeing explosive growth in popularity from accounting to file storing and sharing and much more, so there are a ton of companies to choose from. Make sure you do your research. Not all cloud accounting software will be the right fit for your business.

For example, consider if you’ll need valid records at tax time; if so, you’ll want software that offers double entry accounting. If you need a variety of tools like invoicing, accepting credit card payments, payroll and receipts, consider products that offer an entire ecosystem of accounting support; this way, you don’t need to use multiple providers that each only answer one of these needs. Finally, make sure it’s simple to use but also robust enough to grow with your business.

It’s our goal to liberate small business owners so we’ve put together a list of our top tips for startups:

• Cloud accounting software should complement, not replace, your accountant. You’ll still need to call them for things like year-end processes. We actually have a guest collaborator function so you can add your accountant as a collaborator, and they can easily check up on your accounts, set up sales tax, files sales tax reports, things like that. It’s pretty awesome.
• There are things you can do to get paid faster. Our research shows when an invoice includes the ability for you to accept on-the-spot payments by credit card, you’ll get paid, on average, 12 days faster than being paid by cheque. We’ve also discovered people who invoice clients between 7 and 9 a.m. get paid an average of five days earlier, and that Sunday is the best day of the week to invoice clients.
• Check out GetStartupTools.com for more cool solutions and incentives for startups, covering digital marketing, customer support, web development, email newsletters, online content sharing, education and more, from really cool companies like Zen, Box, MailChimp, Uberflip, General Assembly (and Wave). It’s a great little bundle to make it easier and less expensive to get your business off the ground.

At the end of the day, as much as you might hate dealing with the paperwork, from payroll and getting paid on time to managing receipts and filing taxes, your records paint a picture of your expenses vs. your income, and help you stay on track financially.

Here’s to all the great startups out there!

About Wave:

Founded in November 2010, Wave provides integrated online applications that help small business owners around the world run their businesses. The company has secured more than $19 million in funding. With 1.5 million users on its platform and counting, Wave is signing up tens of thousands of small business customers each month, and currently tracks almost $80 billion in small business income and spending. Based in Toronto, Canada, Wave has offices in Rochester, New York, Vancouver, British Columbia, and Winnipeg, Manitoba. For more information, visit www.waveapps.com.

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