“Cloud technology is helping to power up and rewire the global small business economy,” explains Alexandra Heber, global storyteller for Xero. The new innovations, tools and products are giving power to the small business owner.
According to recent statistics, small businesses that use cloud based services are “much more likely to grow and thrive,” says Heber, with 88% of small businesses lasting for five years or longer than businesses who do not make use of cloud based services. Managing director of Xero Australia, Trent Innes, sums up the role of cloud technology by saying that “we do what we do to make the lives of small business owners better.”
Innes goes on to add that “the truth is that small businesses simply cannot make themselves viable entities without getting on board with cloud financial services. Apps like BPAY are now used by Xero to ensure that small businesses get paid faster.” So, it’s not only beneficial in terms of productivity, but also in terms of accessibility to your finances.
Starting a small business used to be risky, but accounting firms that make use of the cloud help you to access your capital more easily. Moreover, “businesses that use cloud apps grow 30% faster than those who don’t,” Innes said.
The benefits of using the cloud for your financial needs do not end there. Working within the cloud leads to closer partnerships with other businesses. For example, Fuelled coupled with Xero, New Zealand, in order to ensure that Xero customers “can access an immediate source of finance making the task of managing cash flow easier, as well as providing the means to fund future growth,” says Trent Fulcher, director of Fuelled. Partnerships like this would not develop if it weren’t for the mutual connections businesses develop through the cloud. In addition, the relationship that develops between “the lender, accountant, and the business owner ensures that banks have a true understanding of their customers’ daily cash flow, reducing the likelihood of a default on the loan,” says Heber, which makes it easier for your loans to be approved, reduces the risk involved in taking a loan, and opens up access to capital for the small business owners.
The key to making cloud based services work for you is to ensure that you employ an advisor who is fully equipped in the use of services like Xero. “Of the millions of small businesses around the world, less than 1% have online accounting; more than 89% of small businesses on Xero connect with an advisor, and; businesses that use an advisor grow their net profit by 23% more than businesses who don’t – accountants and bookkeepers have a huge role to play in driving the small business economy,” stresses Heber.
The key to the success of your business no longer lies solely in the originality of your idea, or your ability to sell a product, but in your ability to connect to the world on a global scale and ensure that your finances are being managed in the most effective way possible.