Cloud accounting is becoming increasingly important, especially with the introduction of Making Tax Digital (MTD) in April 2018 for businesses over the VAT threshold.
Cloud accounting software can provide an array of benefits for business owner as well as enable them to comply with HM Revenue and Customs by providing the digital link required for MTD.
Most online software allow businesses to set up automated bank feeds (dependant on the software provider and bank used), meaning that all transactions through the bank are securely pulled into the accounting platform without a user having to manually input each line of the bank statements. This cuts down vital time for businesses, making bank reconciliation quicker and easier.
Real Time Information
The direct bank feed also allows businesses to have real time information. Cloud based accounting software can provide vital information to business owners which allows them to check their current financial information, enabling them to see which sales invoices are outstanding, which bills need paying and an up to date bank balance. It’s also very easy to run a variety of reports on a monthly basis to track how the business is performing.
Easy To Use
Many older bookkeeping software’s are primarily aimed at accountants and experienced bookkeepers, however the newer cloud accounting software has been designed with non-accountants in mind and have made the bookkeeping experience easier and user friendly. Most software providers offer free guides and support via their websites, with QuickBooks providing free telephone for their users.
As cloud bookkeeping is usually based on a website, there is no need to install software onto a single machine and can be used from anywhere as long as you have an internet connection. Many providers also have apps available which enable users to manage their business on the go via their smartphones or tablet devices.
By allowing multiple users to access your business bookkeeping, business owners can allow employee to perform certain tasks within the software, such as issuing sales invoices and adding purchase invoices to the system. All users can be tailored and given specific permissions so that they can only access what is needed for their role without gaining access to sensitive business data. This also means that businesses can allow their accountant to have access to their books, who can then provide remote support and process year end accounts without the need to take backups or pick up the paper records.
If you would like more information on cloud accounting, please do not hesitate to contact us.