SME FINANCE GAMECHANGER: SAAS ACCOUNTING BY SONIYA MALIK

Businesses leveraging SaaS accounting platforms report a 30% increase in operational efficiency, enabling them to focus more on growth and less on administrative tasks.

Recent data indicates that over 60% of SMEs have already adopted SaaS accounting tools, and another 20% plan to transition within the next two years. The shift reflects a growing preference for cloud-based solutions that provide real-time insights and automation over traditional accounting systems.

Soniya Maliks says, “Automation is the next gradual phase of business evolution. SaaS based applications like Xero, Zoho, QuickBooks, etc. have made accounting automation accessible and affordable to large masses.”

Soniya Malik – CEO and Founder of Akounto, a renowned advocate for modern financial solutions, has been at the forefront of promoting SaaS adoption for SMEs.

As Soniya Malik highlights, the adoption of SaaS solutions opens doors to significant advantages that every SME can leverage.

• The subscription model eliminates hefty upfront costs associated with traditional software.
• Start-ups gain access to expert services at a fraction of the cost, ensuring affordability without compromising quality.
• The scalability of SaaS tools allows businesses to grow seamlessly, adapting to increasing operational demands.
• By automating manual processes, SaaS solutions enable SMEs to save time and costs, focusing resources on innovation and market competitiveness.

SaaS-based accounting has revolutionized how SMEs handle finances by combining accessibility, cost-efficiency, and automation—all critical for success in a competitive market.

Why We Need SaaS-Based Accounting

Modern SMEs face complex operations that traditional bookkeeping cannot handle. The rise of fintech innovations, including digital payment gateways, distributed ledger technology (DLT), and decentralized finance (DeFi), has made manual accounting systems increasingly obsolete.

High-growth businesses require adaptable solutions to manage expanding structures, diverse revenue streams, and strict compliance requirements. Traditional systems lack the speed, accuracy, and scalability needed for today’s dynamic market conditions.

Soniya Malik states, “As businesses grow, traditional accounting tools fall short in providing the agility and precision needed to navigate today’s financial complexities.”

SaaS-based accounting provides:

• Fast, accurate solutions integrated with fintech tools for real-time data tracking.
• Seamless connections with digital payment systems for automated reconciliations.
• Scalable features to support growth and evolving business needs.

For SMEs, SaaS accounting is not just a convenience—it’s a critical tool for managing complexity, embracing innovation, and staying competitive in a tech-driven world.

Pain Points of Traditional Accounting

Traditional accounting systems are increasingly inadequate for the demands of modern businesses. They present several critical challenges:

• High Setup and Maintenance Costs: Traditional software often requires significant upfront investment in licenses, hardware, and periodic upgrades, creating a financial burden for SMEs.
• Limited Accessibility: On-premise accounting systems restrict access to data, making it difficult for teams to work collaboratively or access information remotely. SaaS solutions, in contrast, offer anytime, anywhere accessibility.
• Manual Processes and Errors: Traditional methods rely heavily on manual data entry, increasing the risk of errors and inefficiencies that can lead to financial discrepancies and wasted time.
• Inadequate Data Security: Local storage solutions are vulnerable to data breaches, physical damage, or loss. Without robust encryption and regular backups, businesses face significant risks of losing critical financial information.

These pain points highlight the need for modern, scalable, and secure accounting solutions like SaaS platforms to meet the evolving demands of SMEs.

SaaS Accounting Benefits for Financial Management

Automation of Bookkeeping, Invoicing, and Reporting

Automation is a cornerstone of SaaS accounting solutions, simplifying tedious tasks like bookkeeping, invoicing, and reporting. For example, Akounto, a SaaS-based accounting platform, provides a user-friendly interface that allows businesses to create, send, and track invoices effortlessly. The platform even enables scheduling invoices and setting reminders, ensuring that businesses never miss critical deadlines.

Automated reporting features help reduce human error, save time, and ensure accuracy. By automating these processes, SMEs can focus on strategic growth rather than administrative burdens, creating a streamlined and efficient financial workflow.

Real-Time Financial Insights with Dashboards

Real-time insights are critical for informed decision-making. SaaS platforms like Akounto offer highly intuitive and fully customizable dashboards that provide a quick glance over a business's finances. Business owners can instantly access detailed financial metrics, including profit earned in the current accounting year, cash flow trends, and outstanding invoices.

These real-time insights empower SMEs to make proactive decisions, identify potential financial bottlenecks, and maintain a clear understanding of their financial health without waiting for end-of-month reports.

Improved Collaboration Between Business Owners and Accountants

Collaboration is made seamless with SaaS accounting tools. Platforms like Akounto allow users to add team members and control their access levels. Business owners can permit or revoke authorizations, ensuring that sensitive financial information is accessed only by authorized personnel.

This feature enhances transparency and simplifies collaboration between business owners and their accountants. It ensures that everyone involved has the right information at the right time, reducing miscommunication and fostering a more effective financial management process.

Scalable Solutions to Accommodate Growing Financial Needs

SaaS accounting solutions are designed to grow alongside businesses. As SMEs expand their operations, SaaS tools offer scalable features that adapt to increasing complexity. Whether it’s managing multiple accounts, handling diverse revenue streams, or integrating additional financial tools, SaaS platforms provide the flexibility to scale without significant reconfiguration or cost.

For instance, businesses that start with basic invoicing and bookkeeping can upgrade to more comprehensive financial modules as their needs evolve, ensuring long-term utility and efficiency.

Enhanced Data Security Through Bank-Grade Encryption

Data security is paramount in financial management, and SaaS platforms prioritize it through bank-grade encryption and regular backups. These measures protect sensitive financial data from breaches, physical damage, or accidental loss.

Platforms like Akounto ensure that data is stored securely in the cloud, eliminating the risks associated with local storage solutions. This level of security not only safeguards critical information but also builds trust with clients and stakeholders, a vital factor for SMEs aiming to establish credibility in competitive markets.

Real-World Examples

Akounto

Akounto stands out as a powerful SaaS accounting tool designed for SMEs looking for simplicity and efficiency. With its user-friendly interface, Akounto streamlines bookkeeping, invoicing, and reporting processes. For example, businesses can easily create, send, and track invoices, while also scheduling reminders to ensure timely payments.

The platform’s intuitive dashboard provides real-time financial insights, allowing users to monitor profits, cash flows, and outstanding payments at a glance. This makes Akounto an indispensable tool for SMEs aiming to maintain control over their finances while scaling operations seamlessly.

QuickBooks Online

QuickBooks Online has become a trusted tool for small businesses due to its comprehensive features. It simplifies bookkeeping, invoicing, and expense tracking while offering integrations with popular apps like PayPal and Shopify. For example, an SME in the retail sector can use QuickBooks Online to sync sales data directly from their online store, reducing manual data entry and improving accuracy.

This tool’s user-friendly interface and robust reporting features make it a go-to solution for managing complex financial operations efficiently.

Xero

Xero is renowned for its integrations and user-friendly design. SMEs can connect Xero with over 800 business apps, including CRM tools and inventory management platforms. A small manufacturing business, for instance, can use Xero to track inventory, manage supplier payments, and reconcile bank transactions seamlessly.

With its real-time updates and intuitive dashboards, Xero empowers businesses to stay on top of their finances and make informed decisions.

FreshBooks

FreshBooks focuses on invoicing and client management, making it ideal for service-based SMEs. Freelancers and small agencies can use FreshBooks to create professional invoices, track billable hours, and accept online payments. Its automation features, such as recurring invoices and late payment reminders, save time and improve cash flow management.

By streamlining client interactions and financial tracking, FreshBooks helps SMEs maintain professionalism and efficiency in their operations.

Soniya Malik’s Advice on How to Adopt SaaS-Based Accounting

Adopting SaaS-based accounting can seem daunting, but Soniya Malik, CEO and Founder of Akounto, offers actionable advice for SMEs looking to make the transition effectively:

Start Small

“Begin with free trials of top SaaS tools to understand their capabilities,” Soniya advises. Testing platforms like Akounto or QuickBooks Online allows businesses to evaluate features without committing upfront, ensuring the chosen tool aligns with their needs.

Identify Key Requirements

Determine what your business needs most—be it invoicing, payroll, or reporting. Prioritize platforms that excel in these areas to ensure maximum utility.

Train Your Team

“Training your team is critical to maximizing the utility of SaaS tools,” says Soniya. She recommends dedicating time to onboard staff and familiarize them with the platform’s features, ensuring a smoother transition.

Ensure Compatibility with Existing Tools

SaaS accounting platforms should integrate seamlessly with tools you already use, such as CRM or ERP systems. This ensures a unified workflow and minimizes disruptions.

Focus on Growth, Not Administration

Soniya emphasizes, “SaaS solutions free up businesses to focus on growth rather than being bogged down by administrative tasks.” By automating processes and providing real-time insights, these tools enable SMEs to channel resources toward strategic priorities, ensuring long-term success.

By following these steps, SMEs can confidently adopt SaaS-based accounting and unlock its full potential for efficiency and growth.