Embracing Cloud Accounting: Benefits for Modern Businesses
When we think of accounting, we probably have a vision of long and complicated spreadsheets or in-depth desktop software but if your business is still using these, it might be time for an upgrade. Cloud based accounting software is now becoming a popular choice for businesses of all sizes because of the flexibility and efficiency that it is capable of offering.
In this article, Rogers Spencer, accountants in Nottingham take a look at what cloud accounting involves and what the benefits can be for modern businesses.
What is Cloud Accounting?
Cloud accounting allows you to keep all of your business accounting software and records online. Whether it is your income and expenses, assets and liabilities, invoices, receipts or much more, all the information can be encrypted and stored somewhere completely safe. All of it will be hidden behind a secure login so that you have control of who can view that information.
As it is based in the cloud, you do not need to be sat in front of your own desktop computer to be able to access it and so you can check things while you are at home, on the train, or even away on holiday. All you need to do is subscribe to an online accounting software solution and move your books to their cloud.
This allows you to access accounts from any web browser or the app provided by the system you have chosen. You can also connect it to your business bank account so that transactions can flow automatically from your bank to your books. There are a huge number of benefits to doing this and so here we take a look at some of the key ones.
Cutting down administration
Administration is one of the most time-consuming processes in a business, so it is great if this can be avoided. With cloud accounting software, you don't need to spend time completing software installations, backups, or other administrative tasks because everything can be accessed over the internet in a split second. It also means there is no need for any specific servers or IT infrastructure to help run your accounting system and your provider will ensure that there are all necessary backups in place without you having to lift a finger. This means business owners and accounting teams can spend much less time on administration and more time dealing with important tasks that can grow and improve your business.
Paperless offices
If you want your office to be paperless, then cloud accounting software is a good place to start. Traditional accounting methods usually entail some sort of paperwork, but in a world that is completely digital, you can avoid this altogether. You can send invoices electronically and your vendors can send them to you, allowing you to store them immediately in the cloud accounting system. This means you can reduce your environmental impact and reduce your costs by decluttering your office from any unnecessary paper.
Compliance
Anyone who deals with accountancy will know exactly how complicated tax compliance can be. It is therefore essential that you are able to produce accurate financial statements, tax estimates and tax returns at the right time.
A failure to do so can lead to audits, fines and even prosecution in some cases. By using cloud accounting systems, you can make this process much easier. It is possible to automate domestic and international tax calculations, and your chosen platform will be able to help ensure compliance with all applicable tax regimes.
Many of these will also automate your revenue recognition to comply with any accepted accounting standards. This can not only save you huge amounts of time, but it can also cut down on your stress levels.
Data security
The data you hold is extremely valuable to cybercriminals, so you need to make sure it is as secure as possible. Cloud accounting services can enhance the security of your business by applying multiple levels of security, including advanced encryption and access control as well as automatically backing up your data so that it cannot be lost.
If an employee loses a device or it is damaged in some way, your data will be kept secure as it is based online and can be accessed from anywhere.
Accessibility
Whilst your accounts need to be kept secure, you also don't want them to be stuck in the confines of your own office. Cloud based software means that authorised users can log in from any location at any time, no matter where they are in the world.
This is not only great for your own team, but if you employ the services of an outside accountant, they will also be able to access your accounts at any time without waiting for you to send them anything or make time consuming visits.
Scalability
Cloud based accounting is suitable for almost any business size and one of its best features is that it can be scaled with you. You might want to start with a fairly small setup, but as you grow the system can grow with you and all you need to do is click a couple of buttons to add any capabilities that you need for your business. It also means you can scale back down at any point you need to.
Automation
There are lots of accountancy tasks that can be automated by cloud-based platforms. This could include importing bank transactions, producing recurring invoices, scheduling reports, and paying subscriptions. They can also calculate discounts and taxes and flag any exceptions where invoices and purchase orders do not match. This can all be time consuming for a single person to do, and so the cloud system can save huge amounts of time.
Cloud accounting software is incredibly easy to use and can save huge amounts of time for everyone involved. It can add value to your business as well as security and peace of mind to ensure your business is able to function in the best possible way at all times.
