COVID-19 has spread over the globe, and no one knows how long it will remain a pandemic. Social interaction is drastically curtailed throughout the world as nations go into lockdown and strict rules, which has a negative impact on economic activity. In such a crucial period, the survival of startups is in question! To be particular in terms of finances. There comes the cloud accounting software for startups as a savior.

Let us take an example; with the ongoing pandemic and several restrictions, your startup company is running with 50% staff capacity! Now, you are not there in the office, and you need an essential report to decide. In such a case, if you are relying on the paper-pen for the accounts and finance – You are done! That’s where you need online accounting software for your business.

An innovative, intelligent, or the best accounting software for small businesses will not let you down in such a situation. 

And not only in the situation mentioned above – an online billing software can do wonders for you. Like real-time expense tracking, time monitoring behind a particular project, as on date accurate reports, tax liabilities, creating estimates and quotations, converting them into invoices, making recurring invoices.

While we highlight the key features of cloud accounting software for startups, let us not forget the main reason why we are here! 

Exclusive tips for startups and small businesses to manage their finances using online billing software

To mitigate risks and survive the slowness induced by COVID19, startup entrepreneurs will need to adjust to a new set of rules or strategies to manage their business finance.

1. Don’t look too far! Have a secured plan for six months or only three months for the next year

Don’t look too far! Have a secured plan for six months or only three months for the next year

Because it is impossible to predict how long this outbreak will endure, it is critical to be prepared for all possibilities. If we consider it a three-month issue, a temporary stop to variable expenses like recruiting, marketing, travel, and so on may be beneficial. 

When a crisis lasts for nine months to a year, entrepreneurs must rethink their company plan to cut variable expenditures, renegotiate fixed expenses (rent, salary, equipment leasing payments), and concentrate primarily on the most critical aspects of survival, such as marketing and sales. 

And you only can decide with the precise data – that you can take from the best accounting software for small businesses (like ours!)

Compassion will be required of businesses in planning, communicating, and acting. They would need the modification of sales revenue targets and product schedules and develop a new operational strategy using online accounting software.

Entrepreneurs and leaders will be required to maintain as much transparency as possible in their communications with their investors and workers in this situation.

2. Keeping track of costs concerning income status

Keeping track of costs concerning income status

The need for firms to make an accurate evaluation of their fixed and variable expenditures and their actual revenues using cloud accounting software for startups. 

This evaluation will provide a clear picture of where a firm is financially and will assist entrepreneurs in making long-term plans in the present uncertain market. 

Even after the pandemic effect has diminished, this strategy may still be applied.

Does your online billing software help with financial reports?

3. When it comes to securing assets, patience is required

Every firm requires cash to operate. The concern that crosses the minds of every founder/entrepreneur in these challenging economic times is where they will get the necessary funds to fund their operations. 

There are numerous funds with sufficient cash to deploy in the next few years, and they may not be hesitant to do so shortly.

Business runs on investments, and you should be asking your investors about the possibility of joining in future rounds. 

Suppose you can acquire bridge financing now and have money ready to bridge the existing gaps in your finances.

4. Deciding on the viability of your model of the business

Deciding on the viability of your model of the business

Because the market is changing every week and sometimes even worse, it is critical to rethink your business model and analyze your company’s revenue and cost expectations. 

Also essential to keep track of existing financial data and cash flow using online accounting software. Check your runway’s length before taking off. Businesses must assess the effect of the change on new sales, collections, credit cycles, and the likelihood of bad debts.

Also Read: Revive Your Business With Online Invoicing Solutions Amid This COVID-19 Crisis

Wrap up

Well, the list of tips could go on and on. But the ultimate conclusion is to use online accounting software or cloud accounting software for startups to better manage their finances and accounts.

As discussed earlier in the post, the best accounting software for small businesses can do wonders for you. Like real-time expense tracking, time monitoring behind a particular project, as on date accurate reports, tax liabilities, creating estimates and quotations, converting them into invoices, making recurring invoices. 

To try Moon Invoice’s online billing software and free demo, contact us at +1-805-491-9393 or support@mooninvoice.com.

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