A lot of what we do now on our home PCs is being saved on the cloud. The world of accounting, and accounts software, has also changed and evolved.
Now for a lot of businesses, a cloud based accounting offering is the go to solution.
Comparing the software my clients are now using to what was being used 4 or 5 years ago, again shows the move to this more flexible offering. We are finding that a number of new clients when they come to us, have already subscribed to a cloud based solution such as Xero. This however doesn’t necessarily mean they have the knowledge to use the software effectively. One client comes to mind, who had a number of businesses all using Xero, however when we started to interrogate the data we quickly realised postings weren’t complete and had inconsistencies. It’s important that users of any accounting software get the right training at the beginning. That way you will be able to use the software to its fullest potential. We’ve been able to remotely access their software to identify the errors and work with them to rectify them. Once the ‘tidying up’ has been completed, we are hoping the training provided will mean a more accurate set of financial information going forward.
Making the best use of cloud based accounting system
Most accounting softwares, especially cloud based ones, have a facility to receive direct downloads from the bank account. This saves your bookkeeper a considerable amount of inputting time. They can then instead spend their time reviewing the data. In addition, as most of us now do, the majority of invoices are being sent electronically and these can be directly linked and stored into the software. This should avoid having the numerous lever arch files gathering dust on a shelf or in the cupboard. The remote access functionality that cloud based solutions offer, means your accountant can regularly check how the business is doing. They can also provide more proactive advice.
When is the right time to move onto an accounting software
A lot of you will be familiar with the phrase MTD (making tax digital). HMRC have announced that from 1 April 2019, businesses will no longer be able to file their VAT returns through their portal and will instead need to use accounting software. So now is the time to make the move over to computerised software with the support of an accountant that can provide the right training.
Cloud based accounting – the main advantage
Having the remote access is a great advantage of keeping up to date with the accounts information, whether you use Xero, Kashflow or Sage One.
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