Are you are still using Paper, Spreadsheets or Desktop Software for your business' bookkeeping? If so, then this article could be very useful to you.
Cloud Accounting has been around for quite a while, however has improved significantly in the last few years. Modern Cloud Software's not only have the potential to transform your bookkeeping system. They can also revolutionise many areas of your business.
Below are a few points that will show why a Cloud system is worth the investment.
Making Tax Digital (MTD) Compliant
Most Cloud Software's are Making Tax Digital (MTD) For VAT compliant meaning that you can compile and file your VAT return direct from the system.
However, the vast majority are already working on the integrations for Making Tax Digital (MTD) for Income Tax. Self-employed businesses and landlords with annual business or property income above £10,000 will need to follow the rules for MTD for Income Tax from their next accounting period starting on or after 6 April 2023.
That means the vast majority of businesses needing to follow those rules in less than 2 years!
The sooner you are prepared and operating under the new rules, the easier the transition will be. You can find out more about MTD here.
Anytime/Anywhere Access
With cloud accounting, you can access your accounts and key financial figures 24/7, from anywhere with an internet connection. This removes the need to work from one location and easily enables the flexibility for employees to work from home.
Automation
Cloud systems are capable of automating a lot of the recurring tasks. This includes recurring invoices, customer reminders and notifications, bank entries and much more.
On top of this, the wider Cloud ecosystem can enable automation of many other systems. The most popular are cash collection and expense analysis.
These combined can save hours of administration and dealing with paperwork each week.
Automatic Updates
When using a Cloud Software subscription, every time you log in, you will be using the most up to date version of the software. All new updates and features are applied automatically so there are no longer any time consuming updates to handle yourself.
Security
Cloud providers offers a secure platform whereby your data is encrypted much like that of online banking so that it is only available to those authorised to access the information. Continuous security updates undertaken by the provider helps to keep your data safe and secure.
As all of the information is in the Cloud, there is no longer the need to send financial documents, USB drives and data backups back and forward to your accountant or bookkeeper. They can simply be given a login and can access the information anytime.
Data Backups
Instead of having to backup your software files yourself in case your data file becomes corrupted or your system crashes. The Cloud systems are backed up in real time and saved across multiple servers around the world.
Our Software of Choice is Xero
Xero is an all-in-one accounting software that is very easy to use and is included in most of our accounting packages. It’s everything you need to run your business.
Your financial data is in one place, it connects to your bank, you can collaborate in real time and you customise it to suit your needs.
On top of that, Xero connects with a massive selection of other apps covering almost every aspect of your business.
You can browse the Xero marketplace here and learn more about the core Xero software here