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[06.06.2019]

Start Up Series – Cloud accounting

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Over the past few weeks our series of blogs aimed at new and start up businesses has addressed many topics. In this blog we look at Cloud Accounting software and the benefits of using it to record and manage the finances of your new business venture.

What do we mean by Cloud Accounting?

Cloud Accounting is a cloud-based, rather than desk based, multi-user real time solution. Cloud accounting software helps you to control your business and finances as well as helping you meet your compliance obligations.

Getting your records in order with Cloud Accounting

In an earlier blog in this series, Maintaining and Keeping Business Records, we looked at the requirements to keep business records and benefits of setting up a system to keep your business records and accounts in order when starting out in business. It is much easier to start with a good system to maintain your records, than have to carry out a large exercise further down the line. Increasingly businesses are using the latest technology to help with these tasks. HMRC have introduced Making Tax Digital which requires many businesses to maintain records in a digital form.

Why Cloud accounting?

  • Cloud Accounting software gives you 24/7 access to up-to-date financial information and reports. You can use cloud based software from any device with an internet connection.
  • It’s secure – Your sensitive financial data held in applications such as Xero, QuickBooks Online and Sage Business Cloud Accounting is stored with high-level security, and backed up automatically and this is all included in your subscription price.
  • Real Time Data – Having real time data on the financial position of your business means you are better equipped to make important decisions. Your accountant will be able to give more proactive advice to help you move your business forwards.
  • You can manage the important aspects of your business on the go, including raising invoices and creating expense claims.
  • No system downtime because all software upgrades are automatically installed. This worry-free maintenance saves you time and hassle.
  • Automatic bank feeds may be available – Once connected to your bank the software will automatically import your statements. Saving you time on manual data entry.
  • Many applications integrate with other specialist cloud based products which can help with reporting, credit control, generating invoices and orders and taking payments on your mobile device.

What system should you use for your business?

There are a range of applications available, the most high profile being QuickBooks, Xero and Sage Business Cloud Accounting. Whilst most of these products are similar, they do each have their strengths and weaknesses and therefore one may be more suitable to your business than another. We help our clients’ select the application best suited to their needs, provide tailored training and support to get their business onto the cloud and work with our clients to make sure they have the systems they need as their business grows.

Next steps

If you would like to find out more about accounting systems and in particular cloud based systems we suggest that you contact your accountant. At DNG Dove Naish LLP we provide a full service for our clients. If you have just started a business or are thinking of doing so speak to us and we will work with you and your business from the very beginning. As well as advising on accounting records and cloud based systems we can help with business advice and planning, obtaining finance, outsourcing, taxation and much more. Contact us today to arrange a meeting to discuss how we can work with you and your business.

This concludes our current series of blogs but next week we will prepare a quick round up of the key points we have covered and provide our list of top tips.

Over the past six weeks we have published a series of blogs focussed on start up businesses. To read the earlier blogs please see the links below:

  1. From the beginning
  2. Sole trader vs. Limited company
  3. The importance of a business plan
  4. The benefits of engaging a good accountant
  5. Maintaining & keeping business records
  6. What taxes do small businesses pay?

 

Andrew Clifford

 

 

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