For any business, regardless of the industry they operate in, accounting is an area that cannot be avoided. We currently live in a time of technological innovation and constantly hear about new startups that they change how their industry operates entirely.
If you are a startup, it is likely that you are trying to figure out the best way to manage your accounting. Below we've listed some of the ways that startups could evaluate how they will implement accounting.
Should you keep it in-house and hire a CFO or Accounting Manager?
Hiring another employee, at least in the early stages, would likely force you to give them a stake in your company. Not to mention another employee adds another liability to your startup, which may seem like an unattractive option.
Should I hire an outside source?
Hiring a bookkeeper for a one on one basis is affordable and usually paid for on a month-to-month basis. It is likely that you have already thought about this option before reading this article since it's the most common, but it's not necessarily the best.
What type of accounting should I implement?
There are two forms of accounting that the majority of companies recognize -- cash accounting and accrual accounting. Some companies have the option to use either, some will be forced legally to use accrual accounting. Both of these have their positive and negative aspects of them and it is likely that you can switch back and forth between the two types at the click of a button on accounting software.
Should I automate the process?
Automating the accounting process is a growing global trend. Technological advancements and increased emphasis on artificial intelligence continue to make automating your accounting process easier. According to Tata Consultancy Services (TCS) early adopters of Artificial Intelligence (AI) accounting saw a generated average revenue increase of 16% whereas laggards saw a modest 5% growth.
If your startup's philosophy is to stay ahead of global business trends, automatic accounting processes should be at the top of your list. A/R Insite's cloud-based structure makes it easier to automate and keep track of your accounts receivable so that you can experience increased efficiency.