As the world prepares for the impending doom of a second wave of COVID-19, financial management is likely at the top of business owners’ minds.
Maintaining a steady flow of cash is important, but what other steps can a business take to alleviate worry?
Paul Guerette is the owner of Trident CPA, a Xero Silver Partner. He says that using a cloud-based financial system can ease the stress of business owners, and help build a better relationship with financial advisors.
“Having great cash flow is wonderful, but you also need to know where your business is at,” said Guerette. “That really comes down to systems and having appropriate tools in place to be able to monitor your business.”
According to Xero’s ‘Young Entrepreneurs: The Future Of Your Practice’ report, online accounting maximizes data flow and allows for valuable conversations between business owners and financial advisors.
However, Xero found that only seven per cent of millennial business owners take advantage of cloud-based software. Spreadsheets, desktop accounting, written journals and keeping a box of receipts make up the other 93 per cent.
Why you should use a cloud-based system
While millennials are usually quick to adopt new technologies in the digital age, the use of financial advancements hasn’t been as common.
“I mean, if I was buying a cell phone today, I wouldn’t tell you to go buy a flip phone. Right? And there’s a reason for that,” said Guerette. “There’s all these wonderful tools that are out there, but such a small percentage of companies are using them or taking advantage of them.”
Through using a cloud-based system, accountants can easily help small-businesses face hurdles such as hiring and retaining staff or increasing sales. With all of your data in one place, it is more convenient for both the business owner and accountant to address concerns and have regular check-ins. This can help with the satisfaction of business owners as well as an increased overall knowledge of their business’ finances.
Guerette notes that the COVID-19 pandemic was arguably the worst thing that happened to many of his client’s businesses. He said that using a cloud-based system helped owners be aware of all their financial information to make better informed decisions, including making it easier for businesses to transfer to online environments during the pandemic.
Financial management in a post-COVID-19 world
“This is the future, it’s here. This is where everything is going, it’s only a matter of time until we’re all there. Of course, those who get ahead of the curve will succeed,” said Guerette. “Those who drag their feet, get pulled along and don’t adopt it? Those are the ones who are going to struggle.”
As Canadians continue to keep an eye on the number of COVID-19 cases, businesses should consider the benefits of moving financial information online. Guerette is excited for the future of cloud-based financial management, and how it can help business owners continue to succeed despite these unpredictable times.
Tech giants like Amazon, Spotify and Netflix are seen as exciting and appealing to consumers, and Guerette hopes that using financial technology will reach that same status for business owners.
“We’ve only scratched the surface in terms of what’s what’s available.”