A cloud-based accounting system is a package of software that you purchase the right to use but it is stored off-site on a remote server – the cloud – rather than on your desktop. It’s cost-effective, can be simple to use, is secure, and provides all the relevant financial information you need at a click of a button. It has been said that small and medium-sized businesses are the biggest beneficiaries of cloud accounting for all of these reasons but cloud computing is not for every business. If you have minimal transactions, for example, or you are the type of person that just isn’t tech savvy, then we would strongly recommend retaining your manual spreadsheet as it is possible to get in an accounting pickle. However, if you’re a SME with manually intensive bookkeeping requirements, you can gain real benefits from implementing a cloud accounting system. Here are a few.
The benefits of a cloud accounting system for SMEs
- Anywhere and anytime availability – You and whoever you nominate, can access your software package and therefore, your data, from any device, from anywhere and when it suits you. This means that you have up-to-date information at your fingertips, and available to everyone in your company that needs it. Compare this to a traditional accounting system, sitting on a desktop that’s usually only available to one user.
- Real time information – Easily track cash flow, invoice payment, profit and loss, tax, and VAT and see at a glance who’s paid an invoice – and who hasn’t – allowing you to make better informed decisions about your business.
- Customise your system to suit your business – Choose and integrate other relevant cloud software, known in the trade as add-ons, to customise your package with extras such as sales figures or customer relationship management (CRM) tools that link financial data to customers or employees.
- World-class security – Cloud systems are a lot safer than a spreadsheet on your desktop, which can be hacked or your computer stolen. No one can access your data on your cloud system unless they have the login to your account. Be assured, that cloud providers are sticklers for the very best security, as their reputation depends on it. Security patches are released regularly and you automatically receive these along with other updates meaning you have access to the very latest technology.
- Integration with your bank – most packages allow daily bank feeds into your cloud accounting applications, again, ensuring that you have the very latest information to hand.
- Company efficiencies – A huge benefit is that they help keep you organised. Everyone can quickly and easily find the data they need and complete activities such as filing expenses. This keeps all your financial data in one place and up-to-date.
- Low cost monthly payments – With regular, automatic upgrades to the software unlike desktop systems that often need manually installing. Your package also comes with access to customer support for fast solutions to any queries.
And finally, the most important reason of all
- Build a proactive relationship with your accountant.
When we have access to your accounting data through a dashboard based in the cloud, it will reduce the amount of time spent transferring data between us: thus making our advice more relevant and end-of-year tax returns easier to manage and complete.
It also means that we can work more effectively together as we can see your financial position in real time. When we combine this with regular quarterly reviews, we can perform our role as an integral part of your business.
HB Accountants are accountants for business. We understand how you can make sharper, better business decisions when you really understand your financial position and we are keen to help you deliver this transparency in the best manner for your business. For guidance on whether a cloud-based accounting system would help your business, please talk to us. We’re still working hard to help you make the right decisions.
Our Covid19 hub is still available to any business that needs accounting support and our team is on hand for bespoke consultations.
Visit our COVID19 Business Hub for more information
For financial and accounting guidance and support, please contact Keith or Karen. We’re still working hard to help you make the right decisions.
Or call 01992 444466 or email directors@hbaccountants.co.uk for help. We look forward to hearing from you.
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The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors or omission or for any person acting on or refraining from acting on the information provided in the above
