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Using the cloud for day-to-day accounting

Article posted: 24th June 2019

Cloud accounting can sound like a big step into the unknown for some business owners, especially when they are more used to ‘tried and trusted’ traditional methods of bookkeeping.

However, many businesses have recently had to take the leap year thanks to changes as part of the Government’s drive to make tax digital, which came in for VAT on 1 April this year. Income and corporation tax reporting are expected to move online from April 2021, so there’s never been a better time to find out what cloud accounting is all about.

While many businesses are getting into the cloud, there are some yet to fully grasp the benefits associated with being able to make better business decisions based on accessing business finances in real-time.

Cloud accounting is far simpler than traditional bookkeeping, and we have seen an impressive growth in understanding from clients who have recently embraced this way of working and lived to tell the tale, proving that there’s nothing to fear.

Choosing the right approach is the main priority when businesses look to move to the cloud and the ones we see clients use, depending upon their individual business requirements of course, are Xero, Sage or QuickBooks.

If you’re yet to embrace cloud accounting, here are 10 benefits, which may help you decide to make the switch:

  1. Cloud accounting is far quicker than traditional bookkeeping.
  2. Record-keeping becomes streamlined and simplified and provides a move towards paperless working, which also benefits the environment.
  3. There’s improved accuracy due to the reduction in steps where common mistakes can occur.
  4. By uploading your receipts in real-time, there’s a reduced risk of lost paperwork.
  5. Your data and software is accessible online anytime, from anywhere.
  6. Cashflow forecasting is simpler.
  7. You can integrate ‘add-ons’, such as invoicing, sales and customer engagement reporting, enabling you to customise your accounting solution to match your business needs.
  8. In terms of improving profitability and business practices, it enables you to track individual project costs and income and it becomes easier to better manage credit control and budgets.
  9. You can share information across your organisation and benefit from increased collaboration and assessment of your business’s current financial performance.
  10. You are ‘connected’ to your accountant 24/7, so there’s no more relying on having to send emails with data that might go astray!

While Making Tax Digital has become a catalyst for many business owners to move to the cloud, others have seen the benefits outlined above well in advance of this.

  • If you would like to learn more about how cloud-based accounting can help you improve your business practices, give us a call on 020 8309 0011 or email info@mcbridesllp.com.
  • We’ve also arranged free Xero drop-in surgeries taking place between 8am and 10am at our Nexus House office, on 3 July, 7 August, 4 September, 9 October, 6 November or 4 December. To register your interest, please email us at info@mcbridesllp.com.

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