How Automated Accounting Empowers Startups' Accounts Department

Key Highlights: How Automated Accounting Empowers Startups

• Cost Savings
  Automation reduces manual work and minimizes the need for additional hiring.

• Better Accuracy
  Cloud-based tools reduce data re-entry and significantly lower the risk of errors.

• Clear Transparency
  Shared ledgers with controlled access improve visibility and build stakeholder trust.

• Giddh Benefits

  • Simple setup
  • Real-time data sharing
  • Multi-company support
  • Easy scalability as the business grows

Still using paper or Excel or Tally for your business’s accounting tasks? There’s a better way.

Maybe a manual accounting system worked fine for your small business when you were just starting out. You sold your service or product, sent invoices from online invoicing templates, and recorded payments in a spreadsheet or perhaps an offline accounting solution like Tally.

But you have grown. And Spiderman’s uncle once said- With great growth, comes more complex accounting chores, like tax filing and automatic invoice preparation — maybe reporting. Okay, maybe we are paraphrasing, but even if you’re doing some of your work in Excel, you don’t have one central location for all your customer and vendor, sales and expense information. Locating a critical detail quickly is nearly impossible.

And that’s the first benefit of using cloud-based automated accounting software: All of your financial data is in one place. As you create records and transactions, they’re filed neatly in the appropriate areas. Everything is centralized and in its place.

How can IT Startups and Small Businesses Benefit from an Automated Accounting System?

To tell us more about that, we chatted with the accounting team of MSG91, India’s leading cloud-communication startup uses a cloud-based accounting software for their accounting.

1. Savings on all fronts

   This is perhaps the most compelling reason to jump on board with cloud accounting software. “As a small business, you can begin your accounting with some manual processes. But as your needs grow, you should be leveraging on automation features such as APIs integration to build more automation and billing efficiencies.”

   Manish, an accountant from MSG91 team said. With automated processes, one is sure to save time and financial resources as the growing accounting needs will be taken care of without having to hire more people.

2. Improved accuracy

   While spreadsheets can be useful for a small business or a startup in their initial days of accounting, they inevitably become cumbersome. They can even be harmful by the time you’re managing financial data as your list of customers grows.

   Thanks to cloud accounting tools and their automation features, you’re not constantly re-entering data you’ve already typed in, because of which the incidence of errors goes down to a significant rate. Deepak, another long-serving accountant from MSG91 said that the manual way of accounting slowed their team down and put them at risk of making big, expensive mistakes because of it being operated without any backup system.

3. Increased Transparency

   At any stage of a business, having complete transparency and control of the finances is crucial. This is especially true for IT startups and their business owners who know how a lack of financial transparency can impact consumer’s interest. The team at Giddh knows that using technology is the key to making small business finance more transparent.

   Accountants can truly benefit from a feature like real-time ledger sharing, using which they could email the ledger of their clients to them on their email for effective collaboration. They can also generate a “magic link” which stays valid for only 24 hours so that the business owners are completely in control.

Other than effective collaboration, sharing ledgers also introduces transparency between clients and accountants. “When the accounting team and the clients are on the same page, there is no space left for any discrepancies of any kind,” the accounting head of MSG91 said with a smile on his face.

Streamline Your Finances: Why Giddh Works for Startups

When your startup grows, so does the complexity of your accounting. If you’re still managing everything manually with Excel or Tally, it’s time to switch to Giddh. Giddh is a cloud-based accounting software that makes managing your finances easy, accurate, and hassle-free.

Here’s why Giddh is perfect for your startup:

• Simple Ledger-Based Accounting: Forget the confusion of managing multiple spreadsheets. With Giddh, everything is organized in a single ledger, making bookkeeping straightforward and fast.

• Real-Time Data Sharing: Need to share financial data with your team or clients? Giddh allows you to share ledgers instantly via email or a secure “magic link.” No more back-and-forth emails or lost documents.

• Multi-Company & Multi-Currency Support: Whether you’re running multiple businesses or dealing with international transactions, Giddh handles it all. You can manage multiple companies, and Giddh’s multi-currency support makes cross-border transactions a breeze.

• Easy to Use: Giddh is designed for busy business owners. No accounting degree required. The platform is user-friendly. Therefore, you can focus on growing your business, not managing complicated financials.

• Scalable and Customizable: As your startup grows, Giddh grows with you. You can add unlimited users, handle over 100 companies, and customize features to suit your needs.

Conclusion

The above is just a summary of why a startup should move their accounting system online. The folks over at MSG91 came to the conclusion that there are lots of other benefits to be had with moving to the cloud after their pain points started disappearing.

To witness the magic of cloud accounting yourself, book a demo today!

FAQs

1. What is an Automated Accounting System?
   An automated accounting system uses cloud-based software to handle your financial tasks, such as invoicing, reporting, and tax filing, without manual intervention. It reduces errors, saves time, and streamlines accounting processes.

2. What’s the Difference Between Manual vs Automated Accounting Systems?