Cloud software has taken over the accounting world in the last decade, and for good reason – it’s accurate, easy to use, accessible anywhere and gives you really valuable insights on your business.
If, however, you are a little late to adopting it in your business, here’s a more detailed look at some of those benefits.
Secure and always up to date
Because cloud accounting software is hosted on a provider’s servers, rather than locally on your computers, you are always using the most up-to-date version of the software.
This means that it is more protected against the latest malware threats, and that you get access to new features as soon as they are released.
The built-in security features of these products, like two-step authentication and hierarchical security access levels, are also likely to encourage better user-behaviour, seeing how staff are often the weakest link in cyber security.
Cloud accounting software is available anywhere – anywhere with an internet connection, that is, which nowadays is most places.
This is especially useful in this time when flexible working has become more prevalent, but is also convenient for where you have more than one site or have employees who travel a lot.
Efficient and scalable
Cloud accounting software includes less administration compared to desktop-based software, as there is no installation required on each computer.
Furthermore, any issues with the software are dealt with by the software house rather than by you having to engage your IT resource.
The software connects with your bank accounts and it is possible to automate certain tasks, improving the efficiency of your business while simultaneously reducing human error.
Cloud accounting software is normally purchased via monthly licences, making it easy to scale up or down depending on the fortunes of your business.
Enhancing collaboration and insight
With all your financial information concentrated in one digital location, it makes it much easier to collaborate – everyone knows they are looking at the most up-to-date figures.
You can also share access with your accountant or other business advisers so they can easily get any data they need to advise you, or (in the case of your accountant) carry out tasks like producing your accounts.
Cloud accounting software presents your financial data in a clear and easy-to-understand format, helping you and your team make important insights which feed into decision making.
It also comes with powerful reporting options, meaning you can very quickly compare key metrics – say sales in one quarter against another, or how long customers take to pay invoices.
The promise of a paperless office has been illusory for most businesses for years, despite high hopes. All the documents generated by accounts have been one of the obstacles to achieving it.
Cloud-accounting is a great tool for countering this, allowing you to digitally store everything you produce and receive.
Furthermore, it connects to your email systems to automatically send out correspondence, such as quotes and invoices, without the need to ever print them.
Making Tax Digital
HMRC’s Making Tax Digital initiative requires almost everyone to use cloud accounting software for key elements of the tax system.
It has started with VAT returns and in the coming years will encompass income tax and corporation tax.
If you would like help choosing cloud-accounting software and getting set up with it, please do not hesitate to get in touch with us and we will be happy to help.
Talk to us about cloud accounting software.