28 May 2019
There has been a lot of conversation recently about Cloud accounting as Making Tax Digital hit businesses in April, with adverts popping up across all forms of media, including television. But what are the real benefits of Cloud accounting to your business? In this blog, we discuss how the Cloud can be a truly useful business management tool.
1. Access to real-time data
Your data is stored and updated instantaneously so you will always be looking at the most up-to-date information for your business, meaning you can make more informed decisions.
2. Anytime, anywhere
You can access your records anytime from any location with an internet connection. This is invaluable as flexible working and travelling for work have become increasingly common in modern business environments.
3. MTD compliance (whichever deadline your business needs to adhere to)
Whether your business was one of the one million plus that was required to meet the April 2019 deadline or not, Making Tax Digital will become a requirement for all businesses filing returns with HMRC within the next few years.
4. All your data in one secure location
With security breaches becoming an ever-increasing threat for businesses, and the consequences to the business’ reputation potentially catastrophic – think Cambridge Analytica – rigorous data security is paramount to any business’ success. Security is a number one priority for all the top cloud software providers.
5. Saving you time…
There is no doubt that migrating to the Cloud enables you to automate many of the accounts and bookkeeping processes, including the input of receipts and invoice generation, that are so time-consuming when done offline; freeing up your time, as well as that of your employees.
6. …And money
With a better view of your finances and more control over the processes, you can save your business from costly inefficiencies and implement protocols designed to increase cost reductions.
7. More reliable and efficient record-keeping
Not only is Cloud software much faster than manual record keeping, but many of the software products available will also pick up on anomalies and ask the user to verify the numbers; thereby reducing human error.
8. Direct integration with your accountants and business advisers
Through the Cloud, your accountants and advisers will be able to view all data to which you give them access, also in real-time. This can make a big difference to the advice and solutions they can offer you, and enable them to keep better track of your accounts. Training is available on many of the software options for your employees so that they can better understand the accounting and finance functions of your business.
9. More than just finance
Many of the Cloud accounting software packages also have a variety of add-on apps and extra features, including organisational and administrative tools to help widen the utility of the software beyond accounting and bookkeeping into management of other core business functions.
10. Staying ahead of the curve
Future-proofing your business is more important than ever with the current rate of change in technology. Keeping up-to-date with the latest systems and software can help prevent your business being left behind in this fast-paced and competitive marketplace. And more than that, going paperless is an important change that you can make to work towards a sustainable business environment.