When to Move Over to Online Accounting
The power of cloud computing has grown greatly over the past decade. Now many of us use a cloud to store our photos, stream content, and securely store personal data. As we use cloud-computing in our personal lives, it is only logical to consider its professional capabilities. Desktop accounting software has long been a popular way for businesses to keep track of their finances. But nowadays there are a wide range of cloud-based accounting options from the likes of Quickbooks, Xero, and Sage One. These software packages have all the features of classic accounting software, bolstered by the potential of cloud computing.
The Strengths of Online Accounting
Online accounting offers many advantages over traditional software. Firstly, cloud-based accounting software will allow you to access your books from anywhere. Quickbooks, Xero and Sage One all offer smartphone and tablet apps to complement the desktop computer program. On top of this, different users can simultaneously collaborate on books. Whether that’s working daily with business colleagues, or inviting your accountant to access the books. With control over permissions, built-in communication tools, and strong security, this software opens new possibilities for working efficiently on books.
As for ease of use, the nature of cloud managed software means that updates, fixes and data are all handled by the software vendor, saving you time and trouble. Using the software itself is also simple. Online accounting software is mainly aimed at small and medium sized businesses. Simple interfaces are accessible for inexperienced users, but offer more than enough depth for pros. The efficiency of digital accounting will save time and take the headaches out of finance.
Any new small business would be well advised to set up an account with a cloud-based accounting system. Professional accountants are more than likely to recommend a product as part of their bookkeeping and accounting advice.
More Reasons to Switch Now
There is now a greater reason to adopt online accounting. ‘Making Tax Digital’ is the latest project from HMRC. This ambitious initiative aims to make HMRC ‘one of the most digitally advanced tax administrations in the world.’ Making Tax Digital is rolling out over the next few years, and will seek to make business submit quarterly, digital tax returns.
The MTD initiative is one clear reason to consider a move to online accounting over the coming years. But this should not overshadow the benefits of cloud accounting that are drawing many small businesses to it. Real-time financial data, flexible controls, efficiency, and a simple monthly subscription model. All these benefits suggest that you should consider a move to cloud-based accounting as soon as possible.
For advice on all aspects of accounting and financial law, as well as digital banking, get in touch with SRG LLP. Based in London and Glasgow, we’re always happy to share our expertise.