Cloud accounting software is not new but has been gaining significant prominence over the last 12 months. Making Tax Digital taking effect from 1st April 2019 has certainly catalysed this change, but other small and medium-sized businesses are realising the benefits of having up to date financial information at their fingertips.
Cloud accounting software is as the name suggests – accounting software that is hosted in the cloud and accessed through an internet browser (e.g. Internet Explorer or Google Chrome). As such, the software can be accessed anywhere and at any time – all you need is an internet connection. One of the real benefits to the accountant / small business relationship is that both sides can access the same accounting records at the same time and discuss any figures or technical issues needed.
The other significant benefit over traditional methods of keeping accounting records, such as paper or spreadsheet-based records, is that up to date financial information is always available. You don’t have to wait until the end of the financial year to see how your business has performed, or have to manually check who owes and who you owe money to. This gives owner-managers much greater insight into their businesses’ current performance and allows them to make informed financial decisions.
The cloud software providers have focused heavily on developing software that is easy to use for small businesses, not just accountants. Historically, accounting software was designed more for accountants than small business owners, something that has changed dramatically in the last few years. This is a welcome shift with the introduction of Making Tax Digital and the digital record-keeping requirements that it brings.
There are a number of companies offering cloud accounting software – Xero, Sage, QuickBooks, KashFlow and FreeAgent to name just a few. We have in-depth experience working with all major providers and would be happy to help you choose a software package that is right for your business needs.
Whether you are an existing or prospective client, or would just like to understand more on cloud accounting software or Making Tax Digital, please get in touch on 01926 851516!