Although it seems (dare we say it!) that most UK business sectors are slowly returning to normal, we're also now accustomed to a far greater prevalence of remote working.
Besides video conferencing and digital meetings, bookkeeping becomes somewhat trickier for fast-paced businesses when there isn't a dedicated accounts team member in the office every day.
SAS Accounting has long advocated for cloud accounting for several reasons - not least that it makes admin tasks faster, more secure, and allows for real-time reporting to help managers make quick decisions!
The Advantages of a Cloud-Based Accounting Solution
Cloud-based purely means that data contained within your accounting system is stored securely on a cloud server - rather than on a physical hard drive or PC.
From a WFH perspective, cloud systems are hard to beat:
- Any team member with the appropriate permissions can log in from anywhere and on any device.
- Data is encrypted to security levels comparable to banking systems, without vulnerability to theft or hacking.
- System tools make accounting functions far easier to use, such as raising invoices, sending quotes or recording expense receipts on your mobile.
Digital accounting software provides excellent value for money, and you won't need to purchase new versions or replacement software when your technology starts to become a little clunky.
The service provider carries out automatic online updates, so you have nothing to update or install and won't need to invest hours in integrating your systems.
Making Tax Digital and Cloud Accounting
We've issued a few reminders about Making Tax Digital (MTD) over the last few months, and it's a pivotal factor for businesses using desktop or manual accounting systems.
As of April 2022, all VAT registered businesses, regardless of their size, need to use the MTD system to submit VAT returns electronically, which may cause a significant headache if you don't have compatible accounting software.
Cloud accounting is more efficient, makes it far easier to collaborate online with team members working from home, and also means you'll be on time and up to date with your VAT returns.
MTD is set to roll out across the taxation landscape over the years to come, so even if you aren't VAT registered, it's a very wise time to start moving to the cloud.
Bookkeeping Systems Recommended by Accountants
SAS Accounting recognises that running a business can mean a lot of plate spinning, but you can't overestimate the importance of accurate financial records.
Whether you're tracking project spending, reviewing sales for the month, or need to know how much cash you have in the bank, precise information is essential.
Our preferred cloud-based accounting package is Xero, for several reasons:
- Automatic bank and credit card feeds load your daily transactions, so there is no manual entry or long-winded reconciliation.
- Clear reports mean you can see straight away how your company is performing financially.
- The dashboard is user-friendly and simple to navigate, even if it looks different from the software you're used to.
- You can install Xero on a PC, laptop, mobile or tablet, and use the same login details to record transactions, issue invoices or retrieve information on the go.
- Online invoices are quick to issue, which cuts down on the time you spend on admin, emailed directly to your client using the information stored in their profile.
As your accountant, we also value the functionality that allows you to share your data with us without needing to export a report and send it onwards manually.
Adviser logins allow accountancy professionals to retrieve the latest information, spot potential problems, and flag any errors they find - without taking any time from your busy day.
You can visit our Xero Tips page for further advice about this particular service or contact the SAS team at your convenience for more guidance about switching to cloud-based accounting and the benefits available for your business.