How moving to the cloud can help improve your practice’s cash flow
Cash flow can cause problems for businesses of all shapes and sizes, but can be especially troublesome for smaller and start-up practices. But did you know that moving away from traditional desktop software and opting for a cloud-based solution could actually help with your practice’s cash flow?
Setting up and growing a business can incur more costs than you first may have estimated, and these can change from month to month, affecting your cash flow. Proper cash flow management is crucial to the success of your business, and without it, your business is at risk of not being profitable.
There are lots of hints and tips for properly managing your practice’s cash flow, but one which is not often discussed as much is the idea of consuming your core software applications in the cloud.
Many cloud-based solutions, including IRIS OpenTax, offer a “pay as you go” style pricing plan, meaning that you don’t have to commit to buy annually. This means if your cash flow changes throughout the year and your practice suddenly has less disposable cash, you are not stuck paying more outgoings than you can afford.
The initial purchase of software often involves an upfront licence fee, which although a one off, can take a chunk out of your available cash for that month. Moving to the cloud removes this upfront fee, allowing you to spread the cost of the solution more evenly across the year, further helping your cash flow.
Finally, unlike desktop software, cloud solutions are easy to scale. This is especially useful for start-up practices as you can scale your solution up or down to meet the changing needs of your business. Therefore if you submit one personal tax return you only need to make one payment so you only pay for what you use.
If you’re interested in seeing how moving to the cloud could help your practice manage its cash flow, why not try IRIS OpenTax for free?