5-reasons for adopting the cloud before you sell your practice
Being a small accounting firm or an accounting firm catering to rural businesses is not an easy task. Challenges such as highly competitive markets, hostile tax environment, retiring partners, and lack of skilled resources not only impact business operations but also make succession planning and sale of firms extremely difficult.
So, how do firms identify suitable buyers and negotiate better deals in spite of these adversities?
While there are many strategies for preparing a practice for sale, this post focuses only on the advantages of implementing cloud software solutions before planning succession.
Accessibility
Moving to the cloud improves the visibility and accessibility of information in your business. Storing applications and data together gives you the freedom to collaborate and work in real-time and allows you to work remotely from any part of the world.
With data on the cloud, you can:
Collaborate in real-time for timely action and quick turnaround times
Improve the visibility of data by eliminating data silos
Visualize cash flows of your business in real-time
Gather comprehensive information on your financial situation by consolidating all invoices, bills, bank balances, etc.
Eliminate the time spent on software installations, maintenance, and updates
Dedicate more time to your clients for understanding their concerns and for offering better services
Enhance the user experience of your clients with dedicated client portals
Having all the information about your business at a single location helps you to design efficient workflows and standardized procedures that add to the credibility of your business.
Scalability
A new business owner or a large accounting firm, the cloud has something for everyone. Cloud accounting solutions offer the flexibility to choose the resources required to accommodate the growing needs of your business. You can either scale up or down, all without compromising on the performance of the software. Various tools integrations offered, allow you to predict minute changes in the business landscape, and help you to spot profitable growth opportunities.
Often buyers, who are interested in acquiring new businesses for solely business expansion purposes, prefer highly scalable firms because of their potential to reap quick ROI.
Ease of succession
Succession planning or sale of practice is not an easy task for small business owners. However, the cloud completely changes the game, because:
Efficiency
Investing in technology leads to continued-growth and improved efficiency and allows you to promote a culture of data-driven decision making. Firms with a continued growth mindset are more attractive for buyers for their potential to ensure steady growth and client retention.
Higher Multiples
Firms with cloud-based software solutions sell faster and for higher selling prices. Also, business owners can negotiate better sale terms, unlike other conventional accounting firms.
Ease of Integration
Buyers who intend to expand to new geographies or simply to achieve their target scales, prefer CPA practices that are easy to acquire and integrate with their business. Firms with a presence on the cloud exactly fit the buyers' choice. With streamlined processes, data on the cloud, and the ability to scale, cloud-based accounting firms are easy to acquire and integrate with the buyers' business.
Ease of rolling up
Because there is no physical data or infrastructure to manage, it is easy to wind up operations or change the ownership of the business.
Security
It is quite natural to question the safety, security, and integrity of the information stored outside one’s office. However, with the cloud rest assured that your data is safe. Cloud computing platforms deploy a wide range of security features that consist of advanced technologies, policies, and controls to protect your data, applications, infrastructure, and services.
Cost
Like any other investment choice, the cost of the software acts as a major deciding factor while choosing the ideal platform for your business. Cloud accounting solutions come in a subscription model of payments without any hidden costs. The subscription fee includes installation, administration, licensing, maintenance, and updates. This model of payment is highly beneficial for smaller firms as they can reap the benefits of reduced software costs while improving the efficiency and productivity of their businesses.