Many businesses are moving to online accounting as it brings a number of practical benefits and helps compliance with making Tax Digital.
A large number of the business owners we work with say online accounting has brought them greater clarity and control of their organisation's finances. Here's a simple overview if you are considering making the move to cloud.
Three distinct benefits
Ease of access. With online accounting you can access your bookkeeping records from any device with an internet connection. So you could easily produce and email an invoice to a customer using your phone as soon as a job is done or the order placed. You can also get a bank reconciliation at the touch of a button.
Peace of mind. Your records in the cloud are securely encrypted. You don't need to worry about backups and any software updates happen automatically. This eliminates the risk of software soon becoming out of date.
Integration. Your records can be linked to other systems and software. This not only enables your business to work seamlessly and more efficiently, it also helps you gain a clear and current view of your organisation's finances and performance.
In all, cloud accounting makes the process of producing and accessing your financial information quicker and easier. Many business owners say they feel more 'in control' as a direct result.
Making the move.
The first step in making the move is to find the right cloud software for your business. There are plenty of impressive and reputable providers in the market and many offer free trials so you can see and feel how they work before you buy. If you are pushed for time, however, we can certainly help.
| Shipleys are partnered with Xero and Receiptbank. We are also Quickbooks certified and experienced in other software providers such as Free Agent and SAGE. Free Agent is free to NatWest business bank account customers. |
A helping hand
Our experience in this area means we can help you in a number of different ways. Here are some examples of how we've enabled businesses to successfully – and painlessly – make the move to cloud accounting …
- Converting existing accounting system and records to the cloud software.
- Training the business team and establishing easier processes.
- Setting up the management reporting and forecasting.
- Helping businesses prepare and comply with Making Tax Digital.
- With the business' permission, accessing records to help ensure they are being kept properly, review business performance and targets and answer any technical queries.
Making Tax Digital for VAT
Making Tax Digital now makes it mandatory for VAT-registered businesses above the £85k threshold to keep records and submit VAT returns digitally using compatible software.You can check HMRC's website to find out the latest list of online accounting software providers which are compatible.
Cloud accounting's time-saving features:
- Quick to produce quotes and sales invoices automatically incorporate into your accounts.
- In-built links enable customers to pay directly upon receipt of your invoice.
- Integrations with your bank account show who owes you money right now and make bank reconciliations easier.
- Scan, photograph or email receipts and purchase invoices for automatic upload into your records – even when you're out of the office.
- User-friendly and simply presented information showing latest customer and supplier activity in relation to your finances.
- Many software providers now integrate with HMRC to make a hassle-free Making Tax Digital submission.
Specific advice should be obtained before taking action, or refraining from taking action, in relation to the above. If you would like advice or further information, please speak to your usual Shipleys contact.
