Business owners have valid reasons to keep their company’s financial information confidential. Most of them would never share the critical numbers with anyone beyond the top leadership team. However, if you are running a startup or small business, it would be a good idea to think otherwise. Sharing important financial data with your employees and team members would help foster a culture of transparency. When you share your confidential data with your employees, it shows how much you trust them. It’s a nice gesture that helps disseminate positive vibes across your organization. Accounting transparency can help startups and small businesses in more ways than one. However, that doesn’t mean you should share every piece of information with everyone. Cloud accounting software in Singapore like Xero gives you full control over who you want to share your critical business data with and to what extent, making this one of the many benefits in cloud accounting.
What to share
Deciding what information to share with your team could be a difficult decision. The thought of sharing information like financial statements with others may make you flinch in the first place. Even if you overcome the initial confusion, you may still be unsure about what financial information to share with your employees. For instance, companies like Hubstaff and Buffer are sharing information about their annual revenues, cash flow, funding, and registered users on a regular basis. And they are not just sharing it with their team, but making the information public as well. Some companies send emails to each team member every time they close an important deal or win a new client. That way, you can instill an ownership spirit among your team members. When you give them something, they will try to give back. They will work harder to make your business stand out in the competition. If you are a Xero partner, you can easily share your accounting data with different users. Cloud accounting software helps your employees access the same financial information from different locations, as long as they are connected to the internet. This makes collaboration easy and fast.
What you should not share
You are the best person to decide what information to share or not share. Just because you want to be transparent doesn’t mean you should not draw a line. Depending on the situation, you may choose not to share all information with everyone. Even the most transparent organizations keep some secrecy – and rightly so. What you need is to have complete control over what you want to share. That’s exactly where Xero accounting software can help you. A Xero partner can allow different users access to different files. Each active user needs to log in to their account with a dedicated user name and a password. While the users can access the data anytime and from anywhere, it is up to you to decide whether you want to give them access to all or some specific files. For instance, you can allow you sales team to access data about your total sales and revenues to help avoid financial setbacks, but restrict them access to information about funding and merger & acquisitions.