16 April 2018
In the first of two blogs, we look at the main ways in which SMEs can benefit from transitioning to cloud accounting.
These benefits can be summarised as:
- The ability to access and enter data from any location at any time, provided there is an internet connection
- The availability of real time information
- Improved cash flow
- Savings in software and maintenance costs
- Access to accounting data by multiple users
- Improved data back up and security
This week we look at the first three of these points.
Accessing data on the move
Provided an internet connection is available, data can be entered and accessed from any location, at any time. The user is not required to go to their place of work to enter transactions or to retrieve reports. This accommodates flexible working, allowing greater freedom both in business and personally, offering opportunities for an improved work/life balance.
Real time information
Data entered into the cloud is updated immediately and can be accessed by multiple users from multiple locations. This allows the business to make operational and strategic decisions based on the very latest financial information. Real time information helps the monitoring of cash inflows and outflows at the click of a button. This has been proven to reduce debtor days because the business has more accurate information about ageing sales debt.
Improved cash flow
As the software subscription is paid for on a monthly basis, there is no large upfront cash outlay. The subscription can be managed through your accountant which in most cases, due to economies of scale, means that you pay less than if the business were to make a direct payment to the software provider.
For further information about these or any other cloud accounting topics, please call Donna Parkin on 0191 567 8611 or email firstname.lastname@example.org.
As one of the leading firms of accountants in the North East, with offices in Newcastle, Sunderland and Jarrow, we have the expertise to advise you on a wide range of tax related issues. If you would like to speak to one of our local experts, please contact us.