Don’t spend hours poring over spreadsheets, let modern technology lead the way to simpler bookkeeping. Your business’ books will benefit, and your accountant will thank you when it comes to preparing your accounts. If you’re new to cloud-based accounting, you might ask what it actually does.
Cloud (or online) accounting software was created in the last decade, and is all about storing your business’ books digitally. You may have heard of the more well-known software including Xero and Quickbooks. This software make bookkeeping much easier and enables you to keep a close, ‘real time’ eye on how your business is performing from any computer, smart phone or device.
What information does it record?
Business income, expenses, assets and liabilities. Choosing a good, cloud-based software can save you time and money. It allows you to create invoices, track payments, calculate and report VAT and manage stock levels.
How safe are they?
All information is encrypted and confidential, so only people with a login can see the data. Xero now comes with a secondary authentication for additional security.
Can my accountant manage my cloud books?
Yes, we’re an accredited Xero online partner. Xero lets us tailor the service to your specific requirements, and share detailed reports highlighting areas of concern, opportunity, or relevance to your market sector. Using the software’s data, we can give you detailed management reports on how your business is performing.
What are the main benefits?
Other than being able to access the software from anywhere, cloud-based software gives you live reporting of your key financials and fully customisable dashboards to give you everything you need to know in one place.
It’s also more efficient as you can set up specific tabs like bank feeds (your bank information flows directly into the software, so you don’t need to type up bank statements) and bank rules to automatically code specific bank transactions to relevant products.
You can also integrate your software into other programmes such as Hubdoc or Dext to capture expenses.
How easy is it to set up?
This depends on a few things. For example, how the books are currently being done, i.e., paper records, excel or other accounting software. It’s generally easier to transfer accounts across from other software than doing from scratch. But it can be done!
How much does it cost?
Prices vary but you can usually pay flexibly by month. Xero, for example, has plans starting from £12 per month.
As Making Tax Digital (MTD) comes into force in April 2023, it will soon become necessary to keep your records digitally and submit quarterly updates of business income and expenses to HMRC using MTD-compatible software. It will be beneficial, therefore, to plan ahead and get your accounting software set up well in advance to ensure your ready for the MTD transition.
If you need specific advice on setting up a cloud based account for your business, do get in touch with us on 01752 665134 or email us at firstname.lastname@example.org.