Is It Time To Move To Cloud Accounting?
Updated: Aug 17, 2020
Whilst the world of business has slowed down it is now more important than ever to take the time to take a step back and give your accounting records an MOT by making sure they are as efficient and effective as possible to give you the time to progress your business when the time is right.
What is Cloud accounting?
Cloud accounting is like a desktop software however the information is hosted on remote servers and then the data is sent to the ‘cloud’ for processing and then sent back to the user.
Why move to cloud accounting?
Unlike a traditional cash book or even desktop software, cloud accounting is extremely flexible and allows you to access the software from anywhere which has an internet connection.
There are many types of cloud accounting software available such as Xero, Sage, Kashflow and QuickBooks to name a few! At Cube Accounting we mainly provide support and training using Xero software and we are Xero Silver Partners which means we can access better subscription deals and have access to a dedicated Xero support team.
Using a cloud accounting software will allow your financial information to be automatically updated and provide you with real time data. For example, your bank account transactions can automatically transfer directly into your software saving you time inputting all those transactions.
Because live data is automatically entered into your cloud software it will mean account balances are always correct and fewer errors will occur saving valuable time and costs.
There are also greater opportunities with cloud accounting because as your records will reflect real time data it will in turn allow your accountant to provide more accurate tax information, offer more realistic budgeting advice and cashflow reports.
Cloud accounting requires less maintenance than the traditional software as there are automatic backups, updates and nothing needs to be downloaded or installed.
It is secure?
Most cloud accounting software is run from data servers which have multiple layers of security to ensure your financial data is secure. Before committing to a cloud software, we would recommend that you review their security and check you are happy with the security features.
Can I still give access to other users?
Yes! The great thing about cloud accounting is that you can provide access to anyone and they too can access the software from anywhere which has an internet connection. This can be extremely helpful if you need help from your accountant on a transaction because they can access your software from the office and talk you through solutions. No need to make appointments and waste travel time!
Is Cloud accounting Making Tax Digital compliant for VAT?
One of the best features of cloud accounting is the facility to file VAT online and maintain all the records within the software. You can also set up your payments through the cloud accounting software making the whole VAT experience easier.
Can cloud accounting help me reduce the receipts that I have to keep?
There is some great software available which will allow you take pictures of your receipt and breakdown the data so you can post the transaction straight into your accounting records. A copy of the receipt will be saved in the software and linked to the transaction, so no need to keep original copies, which means more space in the office.
If you have any questions or queries about cloud accounting or you need support and guidance with making the transition, then feel free to get in touch via 01788 815 017 or email@example.com