If COVID-19 has taught the business world anything, it’s that organizations of all sizes must be prepared for a market in which change is the only constant.
As soon as news of the virus began to circulate, economists and businesses braced for impact. Rumblings of governmental support for families and businesses began in early February, earmarked by a March 2020 release by the Federal Government of Canada, stating:
“These measures will provide up to $27.4 billion in direct support to Canadian workers and businesses.”
The package included $3.8 billion in wage subsidies, flexibility in tax filings, $5.5 billion in credit availability, various market liquidity operations, etc.
The Federal Government provided businesses with some tools to weather the storm, but what have private companies been leveraging for stability?
Cloud Technology as the “New Default”
In a cloud technology report by Gartner, Research Vice President Sid Nag affirmed,
“Adoption of next-generation solutions are almost always cloud-enhanced solutions, meaning they build on the strengths of a cloud platform to deliver digital business capabilities.”
The instinct for businesses (of all sizes and scales) to maintain status quo during these times may look logical to some. But logic dissipates if the current way of doing things is hurting the businesses. Evaluation of existing operations means taking an honest look at legacy frameworks and sacred cows.
Private Sector Shifts to Cloud Technology
Government measures helped keep businesses afloat during these tough months, but the private sector must adjust the way they work, too. Many have already started the adjustment process. We can point to the explosion of cloud technology over the last few years, even more so accelerated by the pandemic.
There are market indications on how critical cloud technology is becoming for business operations, especially in today’s climate. We’ve pulled a few important statistics to note:
- Cloud spending jumped a staggerring 37% to $29 billion during the first quarter of 2020.
- The global cloud market will exceed $623 billion by the end of 2023.
- Accessing data from anywhere was stated as the main reason for cloud adoption.
- 83% of PwC-surveyed CFOs are planning to scale back on capital expenses.
COVID-19 jump-started the need for off-premise, cloud-based technology that is scalable, secure, and affordable. Thankfully, cloud technology is available for a range of business operations, including functions like bookkeeping and accounting.
As we near the end of 2020, businesses may have trouble keeping up with the market if updates to the operating framework aren’t made.
Canadian SMEs’ Guide to Cloud Accounting & Bookkeeping
Smaller / mid-sized businesses in Canada might be on shaky ground right now, but implementing technology to streamline operations is a great strategy to stay competitive and focus on core offerings.
Looking at bookkeeping processes as the first place to shift to digital is an intuitive step towards a more optimal business overall.
Bookkeeping is compared to keeping healthy habits, it’s the act of staying on top of books and keeping the business healthy — an important feat in 2020.
National Market Lead at Deloitte, Amit Khanna, puts it well:
“There’s a direct relationship between bookkeeping and business health. You can’t monitor something you don’t have data for.”
Here’s a guide to why bookkeeping technology is the new standard and why small/mid-size businesses need to adopt.
1. Tech is always on. The beauty of bookkeeping cloud software is that it’s always online. Receipts, documents, and other information is updated automatically, regardless of the time of day or location.
2. Default mode is remote. Consider that businesses that already had cloud technology implemented didn’t have to adapt for the pandemic. They were able to stay agile and up and running, regardless of where they worked from.
3. Not reliant on employees. Staff is generally a company’s most valuable resource, but they’re human! Keeping your information in the cloud means that even if a teammate is sick or unavailable, accessing records is a non-issue.
4. Tailored for wage/rent subsidies. As legislation changes and new governmental benefits are built for business owners, it is critical that businesses stay on top of these changes in order to benefit from them. Cloud software makes it easier to log the required information and reap the rewards as they become available.
5. Fit for the online world. Most businesses already offer services through an online platform, so it makes sense that receipts and other financial reports for these transactions are online as well — unifying the tech ecosystem.
6. Best-in-class tech at your fingertips. Cloud technology has been around for decades and the functionalities are now virtually seamless. And businesses are not limited in their selection — so they can get the best technology there is to offer!
Having your books in order will better position your business to ride the wave of the market. It will show you exactly where you’re spending and helps you make data-driven decisions. And small / mid-sized businesses that go a step further and leverage cloud technology will reap the most benefits.
Bookkeeping has the reputation of being tedious, which isn’t untrue. But, using technology to automate where possible can drastically increase your chance for success!
Partnering with Zivo to digitize your accounting workflow will arm you with timely, updated financial reports, and the knowledge that your books are healthy and ready for anything. Click here to start the conversation and see how you can achieve more.