Increasing numbers of people are using cloud technology in their daily lives, whether that’s for storing files or collaborative working.
In much the same way, more businesses are choosing cloud-based options to manage their accounts, rather than sticking with desktop software.
Moving to the cloud might sound like a significant shift, but the functions of cloud accounting software aren’t actually too dissimilar from those of traditional software.
The main difference between the two is that while desktop software stores data locally on your computer, cloud software is hosted on a secure remote server.
As many of our clients have found, this allows for better efficiency and ease of use – saving on costs and informing management decisions.
If you’re not sure if cloud accounting is right for you, or you need some more convincing, here are five of the main reasons to make the switch.
1. Prepare for Making Tax Digital
Digital tax reporting will be a requirement under Making Tax Digital (MTD), so assessing your options now and familiarising yourself with the software will make the eventual transition much smoother.
This is especially important to think about if you’re among the VAT-registered businesses that will be included in MTD for VAT from 1 April 2019 – now is the best time to get ready.
MTD is one of the biggest changes in the last 20 years in how taxpayers deal with HMRC.
2. Stay up-to-date
Real-time updates mean you’ll be able to access recent information from anywhere with an internet connection.
This gives you an accurate picture of your business’s financial information at any time, so you can view and analyse the data in one place.
That means you’ll be better informed to make important decisions about your business finances.
3. Save time
As well as being quicker and easier to use than desktop software, cloud accounting technology allows you to automatically generate your invoices, saving the time and energy of keeping track of them yourself.
You can usually use the software in combination with other tools, such as invoice scanning, to further streamline the process.
4. Keep your data secure
High levels of encryption, password protection and secure servers mean your financial information is kept safe on cloud software.
In addition, as data is constantly backed up on multiple server locations, you don’t have to worry about it being lost if your computer crashes or breaks.
5. Collaborate easily
With cloud software, multiple users – including us as your accountants – can access your business’s data at the same time, minimising any problems caused by version control.
This feature means we can work with you on your accounts without the need to send files back and forth.
We support several software providers, including KashFlow, Xero, Sage and QuickBooks, and can suggest one to suit the type of business you run and your budget.
Get in touch to talk about how cloud accounting software could benefit your business.