How accounting technology can help founder wellbeing
26 April 2023
There is no doubt that starting a new business can be a stressful and demanding experience for founders, particularly when it comes to managing finances. Wellbeing is not usually high on the priority list with what can feel like a whirlwind of demands required from the very beginning. But, with the help of accounting technology applications, start-up founders can alleviate much of the stress and anxiety associated with at least the financial management and stay on top of all their accounting tasks. This can be achieved with accounting applications such as Xero, MYOB, Unleashed Inventory, Vend and various other invoicing and payroll addons. How exactly can applications help reduce workload and improve the overall well-being of start-up founders? Let’s explore.
1. Streamlining Financial Management Processes
One of the most significant benefits of using accounting technology is the ability to streamline financial management processes and automate tedious accounting tasks. Many accounting software solutions offer features that can automate routine tasks such as invoicing, tracking expenses, and reconciling bank statements. This automation can free up valuable time for start-up founders whilst also improving the level of accuracy of financial records.
2. Improved Decision Making
Accounting technology can also help start-up founders make informed decisions about their business finances. Cloud-based accounting software allows for real-time access to financial data, so founders can quickly identify trends, track expenses, and forecast cash flow. This knowledge can help them make strategic decisions that can ultimately lead to increased profitability and reduced financial stress.
3. Better Cash Management
Effective cash management is essential for any start-up, and accounting technology can help founders achieve this. With budgeting and forecasting tools, they can create cash management plans that align with their business objectives. This process can help them manage their cash flow and reduce the risk of unexpected financial setbacks that can cause stress and anxiety.
4. Enhanced Collaboration
Accounting technology can also improve collaboration between start-up founders and their accounting team. With cloud-based solutions, all parties can access the same financial data in real-time, reducing the risk of errors and miscommunication. This reduces the stress at year end when providing the information to your accounting team to prepare financial statements and tax returns.
5. Improved Compliance
Compliance with regulatory requirements can be a daunting task for start-up founders. Fortunately, many accounting applications can help with this challenge. For example, software solutions can generate tax reports and largely prepare GST returns automatically, reducing the risk of errors and penalties.
Overall, it’s a no-brainer for founders to employ the use of as much accounting technology as they can to manage those processes and free up their mental capacity to grow the business rather than worry about the finances. By streamlining financial management processes, providing real-time financial data, facilitating better decision-making, enhancing collaboration, and improving compliance, start-up founders can reduce stress levels and achieve greater work-life balance.
Register for the Tauranga FoundX meetup
We are hosting our first Tauranga FoundX meetup on Thursday, 4 May at 5pm – 7:30pm where we will explore not only the ways in which financial management can be streamlined from the very beginning, but focusing on the ways in which these systems could benefit founders in and out of their business. . Join us for a night of networking, information, and inspiration. Guest speakers include Beppie Holm, Carl Jones and Sam Kidd.
FoundX is designed to help empower regional entrepreneurship, connect communities and inspire innovation.