Why Cloud Accounting?
One of the most common questions we are asked as accountants and taxation advisors is:
Should I invest in a cloud accounting solution for my business?
In short. our answer is yes. For a few years now cloud accounting has been touted as the digital solution for all business regardless of size, and has been hailed as the future of financial reporting. This has been emphasised by HMRC introducing the new digital tax accounts which are due to be rolled out to all taxpayers by 2020.
What are the benefits of using a Cloud Accounting Solution?
1. No further worries about making and storing backups, as the accounting software provider will have dedicated secure servers where your data is stored and backed up instantly.
2. The software can make the communication of information between an accountant and the client much easier and more efficient.
3. You can spread the cost of using accounting software by paying a monthly subscriptions rather than a yearly one.
4. All the upgrades for cloud accounting software are carried out by the supplier at no extra cost, so you are always on the latest version. So no need to install updates or “patches”.
5. Data can be input more efficiently into the cloud package. For example many banks now provide “bank feeds” where bank transactions can automatically be entered onto the cloud software avoiding the need to manually key in data.
As you may expect, due to the growing popularity of this sector, there are a number of solutions. Over the next few pages, we enclose a guide to help you choose which solution is right for your business.