In the modern business world, having reliable data and information in real time is so important.
Being able to run your business and make decisions relies on having accurate information available whenever you need it. Gone are the days of having your accounts done once a year and then using those accounts for the next 12 months for making decisions, getting finance etc.
Cloud Accounting
The main solution for most businesses is Cloud Accounting. Accounting software/platforms are generally in the cloud and so being able to log on to their website or the app means you are able to access whenever you need to, on the go, at home on the weekend or even on holiday.
You will probably have seen lots of marketing from the main players, the most popular ones being: -
Xero
Sage
FreeAgent
Quickbooks
There are a few other players who are out there such as Quickfile, Pandle.
There is no right answer for your business, but generally the feel and usability is important as well as the option of adding in apps if needed.
The benefits of cloud accounting software
Having quality reliable data in the software means that the reports generated are accurate and reflect reality. These reports are then vital in running your business.
As part of the features in the software, you will be able to issue invoices on the go, or set up recurring invoices. You can also send statements to customers to chase payments.
You can take pictures of your receipts and upload them into the software, it really does mean that you can keep on top of your books as you are going along.
The most obvious overlooked part of moving your business into the cloud or potentially moving it to a different provider is engaging your Accountant/Bookkeeper in the process. They can help you choose something that has the potential to grow with your business if you plan to grow, or can equally help you choose something that has the features you need and doesn’t have any whistles and bells that you don’t want or need.
Equally getting them to review/check the data regularly will ensure that the data is accurate. There is nothing worse than having software that shows a bank balance of one figure, when the bank account says something completely different.
Why use good accounting systems?
Typically having good accounting systems means that your Financial accounts, tax returns and VAT returns are done quickly after the period end. It also means that if you wanted to review your profits/taxes prior to the year end, the data is there and you can then make an informed decision about whether to invest in that new equipment, or make that pension contribution safe in the knowledge that you know you can afford to and also knowing what the tax benefit is.
Other benefits can be things such as no longer having the need for large IT spend, the data is securely held in the cloud and you won’t need to take back up files.
Cloud accounting means not needing to keep as much paper and ideally you will be able to automate some of the bookkeeping so errors become less and less.
Please don’t hesitate to get in contact if you would like some advice on moving to the cloud or moving to a different accounting software solution.
For accounting advice that's tailored to your business, get in touch.
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