You might worry about data protection law implications when using cloud software for your accounts.
Here’s why most cloud accounting software is safe to use under GDPR and some best practices to make sure you stay compliant.
Simple to use
Accounting software is designed with the user in mind. Entering data is fast and can be done anywhere in the world (provided you have an internet connection).
Importantly, there is one source of truth. You don’t need to work off several versions of the same spreadsheet – everything will be contained in one area.
You’ll be aware of how much of a time-saver this is if you use accounting software already, but this also makes compliance easier too.
Automation is your friend
Keeping your accounting automated makes for a much easier business process for everyone.
You won’t have to worry about chasing your clients and accidentally getting added to the wrong email chain. You don’t want your data being shared with the wrong person, so automated responses and chasers will do your dirty work for you and keep everything as streamlined as possible.
GDPR is all about protecting everyone’s data, so it works for you and allows you to stop your team from accidentally sharing any information.
If you’re worried about security and you want to increase it, there are a host of add-ons you can use.
It’s worth assessing the market and your needs, but we’d be happy to advise if you feel like additional security would be appropriate.
There are countless integrations that could work wonders for your business, with many of them streamlining existing features, adding more connection to your own suite (Shopify, Amazon etc) or just giving you more clarity should you need it.
If you want to be more secure, cybersecurity packages exist to help stop your data from being stolen, and encrypt your data to ensure a greater level of protection.
Data protection legislation built in
All major accounting software packages have data protection legislation built-in – that means all the legal paperwork is done for you, and your clients.
It’s not a one size fits all, but for most cases it will cover the hard yards, and give you the security to continue using the efficiencies accounting software allows.
The main pros of accounting software include:
- simple data entry – fast, straightforward and only required once
- fast processes – No more delays for sale and invoicing
- digital record keeping – essential for Making Tax Digital for VAT
- automation of reports – profit and loss, debtors and creditors, customer accounts, inventory counts, sales, forecasting, etc.
- automation of tasks – eg calculating pay, producing payslips, calculating and submitting VAT, etc.
- reduction of errors – eg transposition of figures, incorrect or incomplete recording of transactions, etc.
- integration with other systems, such as online banking and e-filing
Consult your advisor
If you have any issues or areas that you need to discuss, please talk to us.
We’ll be happy to answer your concerns regarding accounting software, and assist wherever we can.