16 October 2019
Welcome to the future of accounting, where all your financial accounts are kept in the cloud. For some, this transition to digital accounting can be daunting; it’s a new way of working to understand and learn.
However, here at TBL Accountants, we are confident that getting on-board with cloud accounting software now will revolutionise the way your company finances are managed in the long-term.
Read on for everything you need to know about cloud accounting and how it can benefit your business.
What is cloud accounting?
Put simply, cloud accounting means using internet-based software to access, process and manage your financial accounts. The accounting software and its data are hosted in ‘the cloud’, which are a secure network of remote servers around the world.
With services like Google and Amazon now relying on cloud-based storage and software solutions, it’s great to see how accounting is taking advantage of these developments in technology. Accounting is no longer confined to an office; cloud accounting means that you can access the information you need anywhere in the world, on any compatible device, whether it’s your computer, tablet or smartphone.
What are the benefits of cloud accounting?
The benefits of cloud accounting are impressive. From saving time to enhancing the security of your financial data, there are many business-savvy reasons to move to cloud accounting.
- Easy to use. With cloud accounting software like Xero and Intuit QuickBooks, the processing and management of your company finances are simplified. These online packages include automated features such as bank reconciliation, invoicing, expense tracking and scheduled banking. Plus, we provide digital training to help you get up to speed.
- Efficient. Because the data is in the cloud, you can always access up-to-date financial information, as it’s updated automatically, and in real-time. No computer software is needed, meaning no installation processes or updates – this is all handled by the cloud accounting software online – so all you need is an internet connection and an internet browser to get started. You can even access your cloud accounting software from a smartphone. With a more efficient accounting procedure, you will have more time to focus on other business tasks, and there is less paperwork to sift through and organise.
- Secure. The security of financial data is exceptionally important, so having the data saved in the cloud and not on your business premises immediately eliminates the worry of having to manually store and backup your data yourself. Cloud accounting software will automatically backup your data too while reducing the risk of loss or theft.
- Collaborative. Cloud accounting gives a level of flexibility that traditional methods of accounting are unable to. One reason why cloud accounting is becoming so popular is due to its collaboration tools. Not only can you access your figures at any time, anywhere in the world, but your authorised employees can also, wherever and whenever they need it.
What cloud accounting software should I use?
With so many cloud accounting software options available, it can be difficult to choose the right one for your needs. Our article on Xero versus QuickBooks outlines their main features to help you to make a decision on which will work better for you and your business.
Why is it important to consider cloud accounting?
Making Tax Digital for VAT (MTD) was launched for qualifying businesses in April 2019 – an initiative set out by the Government to update the current HMRC tax system, whereby businesses’ tax information will be held in their digital accounts, keeping records on a quarterly basis.
As more businesses made the move to MTD for VAT in October 2019, with a complete rollout in the foreseeable future, there is no better time to make the change to cloud accounting.
How can TBL Accountants help?
We are here to support you with your business’s cloud accounting needs. With our dedicated cloud accounting services, you can access your accounts from anywhere, at any time, from any device.
So, whether you want to benefit from the real-time analytics and security cloud accounting offers or plan your business’s compliance with Digital Tax when it arrives for you, we can help with our digital training and unlimited support.