The traditional approach to bookkeeping for business is always changing. Although manual records, spreadsheets, and even desktop accounts software have done the job for many years, any evolving needs of small and medium-sized enterprises require a more agile bookkeeping solution.
Business owners are now increasingly working remotely, at least in some way or another. The ongoing COVID-19 crisis has already changed the way that many industries are working and with more entrepreneurs working at home or on the go, it is a lot more important now more than ever to have flexible access to your finances.
Making Tax Digital
There is now even more pressure on small businesses to digitise their accounting and tax reporting. Digital compliance is becoming a necessity given the emergence of Making Tax Digital.
Making Tax Digital is the latest initiative from HMRC, designed to bring the UK’s tax system into the 21st century and streamline the tax reporting system for businesses. Time is running out for many businesses to upgrade their accounting infrastructure, with all self-employed professionals, landlords, and VAT-registered businesses having to file quarterly returns via digital tax accounts from April 2023.
What is cloud accounting software?
Cloud accounting software is a digital form of bookkeeping which retains any financial information from your business accounts within the cloud. It is possible to access the cloud software through a web browser wherever you are, whichever desktop, laptop, or mobile device you are using, providing you have secure Wi-Fi or 4G connectivity.
Advantages of using online accounting systems
1) Ease of use
Online accounting software is designed to be highly intuitive. It is built with the business owner firmly in mind. Historically, bookkeeping has always been a rather time-consuming task for entrepreneurs, but the slick user experience of cloud accounting platforms can save any business valuable time and money which can maximise profits.
2) Increased automation of tasks
Cloud accounting can also result in improved efficiency within your bookkeeping in a multitude of ways. The accounting system is designed to automate a string of financial tasks in the background which would otherwise require manual input. Bank feeds can automate the recording of bank transfers directly into your accounts. It is possible to trigger invoices and automated payment reminders, as well as scan in paper-based invoices or business expenses. This automation helps you or the person who is running your accounts stay on top of your finances and free up time to focus on other aspects of your business.
3) Scalable software
Online accounting platforms are primarily designed to make it easy to upscale or downscale the services your business may need. The software is built to incorporate third-party apps that are supported and add-ons to develop a bespoke 24/7 accounting portal for your business and your team.
4) Real-time overview of your business figures
Traditional bookkeeping has often been a retrospective task for many small businesses. Cloud accounting makes it possible for individuals and small firms to be able to record any business transactions in real-time and get a clearer understanding of where their finances stand.
5) Making tax digital-compliant
Crucially, most cloud accounting software is usually built to work seamlessly with the Making Tax Digital platform. This makes it a future-proof investment for your business.
6) Safety and security
Cloud accounting is much more secure than traditional accounting software so your business accounts are kept safe, and because backups are made automatically you never have to worry about losing your valuable financial data.
Maple Accountancy can help with your online accounting
Accounting and bookkeeping are moving from excel spreadsheets and local software to cloud-based, but many businesses struggle with moving over to the cloud and managing the automation. It can be confusing and overwhelming if you do not know what you are doing, but Maple Accountancy is here to help. We can help set up and transfer you over to cloud-based accounting and provide you with automated expense tracking software.
With our cloud accounting solutions, you will have access to your accounting information online anytime, anywhere, and from any device. Online accounting gives you the ability to stay connected to your data and us as your accountants and advisors. Our team of experts are experienced users of cloud-based accounting systems and can assist you with choosing and implementing the best software for your business. We are certified and experienced with QuickBooks, Xero, and Sage, which means we can provide impartial advice to help you choose the most suitable cloud accounting system for your business.