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[26.09.2017]

Why use a Cloud Accounting system?

 

 

The way that a business records its financial activity is undergoing great change in the digital world. In the same way many individuals and businesses use online banking, social media and online shopping sites, cloud based accountancy systems are becoming the application of choice for many business owners. If you have not used cloud accounting software before this can seem daunting. However, there are a number of benefits available to you and your business from moving onto a cloud based service.

What is Cloud Accounting?

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

Benefits of Cloud Accounting

There are a great number of benefits to using cloud accounting software. The key benefits include:

  • It’s online so you can login  anytime and anywhere you have an internet connection to view or update your data.
  • 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.
  • You can manage the important aspects of your business on the go, including raising invoices and creating expense claims.
  • Dashboard – This provides you with a clear overview of your business all on one screen.
  • It’s secure – Your data held in applications such as Xero and QuickBooks Online is stored with high-level security, 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.
  • There are also a number of third party applications which ‘add-on’ to the main applications and empower you to tailor your own accounting and reporting system to suit your needs. These add-ons include powerful reporting tools and tools enabling you to use your mobile device to create orders, invoices, accept payments and issue receipts. We will be looking at add-ons in a later blog in this series.

Making Tax Digital

You may have heard of the new government initiative ‘Making Tax Digital’ (MTD). This will be the most fundamental change to the tax system for at least the last 20 years. The initiative will mean businesses will be required to electronically submit summarised accounts data on a quarterly basis. The full MTD proposal has been delayed, though it is being introduced from April 2019 for VAT reporting. Moving your business finances onto a cloud based reporting system now will enable a smoother transition to the MTD platform.

Moving onto the Cloud

So, using cloud accounting software could be very beneficial to your business. It allows you to work wherever, whenever saving you time. It also allows you to make more informed decisions on your business as you have access to real-time financial data.

Here at DNG Chartered Accountants our team includes experienced certified advisors for QuickBooks Online, Xero and Sage One cloud accounting software. We will get your business set up on the selected system and ensure your staff are fully equipped to use the package. If you are already using another package we can help migrate your data from your existing programme to a cloud system.

For more information on what a good accountant can do for you and your business please read our earlier blog. Please contact us for advice on cloud accounting and how this can work for your business so that we can support you and your business needs.

Keep visiting our website as we will be publishing further blogs over the coming weeks discussing various aspects of cloud accounting software in more depth.

 

Andrew Clifford

 

 

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