Here, There, and Everywhere: 5 reasons to move to cloud accounting
Accounting is one of the main pillars of any business and dates back hundreds of years. For as long as pencil and paper have helped businesses with their day-to-day functions, recent innovations have brought accounting a much-needed facelift! Cloud accounting is the most recent addition, with the premise being that data can be processed on the “cloud” and is then returned to you. It allows your data to be accessible from anywhere, instead of needing to email spreadsheets or scan sheets upon sheets of paper! Here are some of the reasons why we think Cloud Accounting may be right for you:
The Legal Side
Current policy changes have made it so that all VAT-registered businesses are required by law to follow Making Tax Digital (MTD) guidelines. This requires you to keep digital records of transactions and to submit VAT returns online. This is primarily due to the increase in efficiency it allows HMRC. However, these policy changes also benefit you, as it allows the submission of these returns to be less of a headache.
Accounting on the cloud provides you with the portability to access the required information at any location, on any device, without prior sending and receiving of documents. There are multiple options for numerous users at the same time (ideal if you are thinking of outsourcing your accounting) and it helpfully keeps all invoices, inbound and outbound transactions, and more, securely in one place. As a result of this, you can easily track and generate reports and troubleshoot any inconsistencies or missing figures you or the system notices.
Ready to Use Templates
The majority of cloud accounting systems build easy-to-understand user interfaces, with a range of capabilities. A significant one is the addition of ready-made invoices. They often host a range of templates that you can personalise with the addition of your logo, payment details and company information. This not only provides a more friendly put-together look for your business, but dramatically decreases the amount of time you, or your bookkeeper/accountant, need to put towards the creation of such assets.
Efficiency & Environment
Using lots of paper can be wasteful and inefficient. Using cloud accounting means not only are you saving a little by skipping purchasing paper constantly, but the environment will also be a little bit more protected, which is always a benefit.
Last but not least, integrating and streamlining processes with helpful links to software such as Stripe, PayPal, GoCardless and Dext, means you will successfully be able to reach a wider range of customers and suppliers, without the headache that comes with creating new systems to accommodate them all. Additionally, there is the option of setting up live Bank Feeds, from a range of big banks and some smaller ones.
At Joanne Manville Virtual Assistance, we use Xero. With its access to HubDoc and easy Xero-to-Xero connections with our customers and suppliers, we find it difficult to think what we would do without it! All in all, moving to cloud accounting may feel a little daunting, but we hope we have shown how the investment of your time into this software could be just the thing your business needs. Hopefully, it has encouraged you to take the plunge and support your budding business!