Are you ready for the cloud?

When I first met Jenni, she had been in business for about 3 years. She offered a range of holistic services to her customers and her company was doing well. She was growing her customer base and sales had increased every year.

Talking me through her trading history, Jenni told me that she had made a small profit in her first year, which was something she was very proud of, an even bigger one in her second year. She felt she was well on the way to making her business a great success.

Everything she was doing was working, her customers were growing, she was beginning to make a name for herself, by the end of year 3 she was busier than ever.  However, when Jenni looked at her year end accounts she was very surprised to see that while her revenue had doubled her profit had not. This did not seem right to her and she did not know what had happened.

So, what went wrong?

Well… probably nothing… actually.

As you take on more and more business, it can be very hard to keep an eye on your spending. To keep your customers happy, you may spend more money in getting faster deliveries from your suppliers or, have spur of the moment purchases that eventually add up and eat into your profits.

The reality is that unless you plan and track of your spending – chances are that they will increase.

The good news is that this is a normal growth phase.

The not so good news is that unless you get to grips with this, you will eventually go out of business.

Your business has changed, has your accounting?If you go back to when you started out, accounting was something that you did once a year. It was something that you had to do. Once you submitted your tax form you didn’t think about it again until the next year.

In the beginning it was possible to do that, this no long works for your business. Accounting is now something that you need to keep an eye on so that you can bring your profit back in line with your revenue.

More and more entrepreneurs and small business are turning to cloud accounting. My question to you is: will cloud accounting work for you?

Check out my blog where I go into the pros and cons for cloud accounting.

Interested in finding out more? book a discovery call with me here.