Switching to cloud accounting software means your businesses data is easily accessible, wherever you are, at any time, with any internet-enabled device. Working in the ‘cloud’ enables you to have a better overview of your finances so that you can make better business decisions. As the software is in the online cloud, it removes the need for an expensive, outdated, accounting package to be downloaded to a desktop computer.
Are you thinking about switching to cloud accounting? We have outlined the 5 main benefits of online accounting software such as Xero here:
1. Save your business money
Firstly, cloud accounting software saves your business money as soon as you switch. Desktop accounting packages can often be expensive to purchase, as you pay either a big one of fee for life or a yearly fee. However, cloud accounting software is cheaper as it allows you to pay a smaller monthly charge. Having this more manageable fee can help with the cash flow of your business.
Secondly, there are apps that connect with cloud accounting software to help you to streamline your business admin. We can recommend the best apps to help your individual business needs.
One example is ReceiptBank. This app integrates with Xero and allows you to take pictures or upload your invoices into the app where the software will analyse the information and post it to Xero for you. You no longer have to spend hours doing lengthy manual data input. Say goodbye to the days of manual data processing, and say hello to more time to grow your business.
2. Comply with Making Tax Digital
Making Tax Digital (MTD) is already live for businesses over the £85,000 turnover for VAT. From April 2020, at the earliest, MTD will impact for Income Tax and Corporation Tax. MTD for VAT may also be extended to all VAT registered businesses.
Cloud accounting software such as Xero is Making Tax Digital compatible. You can to submit these details to HMRC and meet the tax legislation requirements. No longer a need to run multiple systems to meet compliance needs. Xero lets you access, complete and submit:
- Financial information
- VAT returns
- Payroll processing
- Construction Industry Scheme (CIS)
3. Holding your data in the cloud is secure
People are often concerned about how secure the cloud is for storing your data. Despite people’s concerns, the cloud is one of the most secure ways to store information. In the event of a fire, or theft, data stored on traditional software or manual records, would not be backed up to the cloud and would be lost. However, with digital records stored in the cloud, business productivity doesn’t need to be affected as the data is securely stored off-site, so you would have access to them on any internet-enabled device.
You can also control who has access to certain information. You may have sensitive data that you may not want some people seeing. Once someone is invited to view your data you can control which parts they are able to access. This way is far more secure than sending data via a USB or attaching a spreadsheet of personal or financial data via email.
Read more about the cloud and how secure it is in our blog post.
4. Real-time up to date information
See your live bank feeds within the cloud accounting software dashboard. If you reconcile daily, you can have up to date financial information on your company for day to day reporting. Meaning you have access to a clear overview of current financial position, as opposed to old data.
Cloud software will update automatically without the need to purchase additional updates. You no longer need to wait hours for updates to install. Be safe in the knowledge that your software is always up to date with the newest features at no extra cost.
5. Free online support 24/7
Experts are available for help and support whenever you need it. There are also plenty of articles and videos on Xero’s YouTube channel to help guide you through any problems you may be having. This can be accessed within Xero Central. As Xero is international with offices all over the world, you can count on speedy support no matter what time of day (or night) it is.
You’ll be assigned your own cloud accounting expert from Ellacotts who is always on hand answer any of your queries about the software or your finances. We are always here to help.
Tailor-made cloud accounting packages to empower your business
We know you expect more from your accountant. You want an insight into the underlying detail of how your business is performing, which is what our solutions will give you.
We work with all the major cloud accounting software providers including Sage, FreeAgent and Quickbooks and are proud to be Xero Platinum Partners. Our experts will recommend the best-suited platform for your individual business needs. We can also give you training on how to use the software and help transfer your manual records onto digital records.
If you would like more information on how cloud accounting could help your business please contact us at solutions@ellacotts.co.uk or 01295 250401 or contact us here and we will get back to you.
Read more on our cloud accounting blog.
