If you're not using cloud accounting software for your small business accounts, then you're making your life much more difficult than it needs to be. The days of having to manually enter accounting data into outdated software programs are long gone. Cloud accounting simplifies the process by providing a range of features that make managing your finances much easier.
Let's take a closer look at how.
1 - Easy access
In the past, accessing accounting data could be difficult when there was no one at the office. With cloud accounting, you gain easy access from anywhere in the world, so you can review and manage your accounts no matter where you are. You can do it from your smartphone, tablet, or laptop, so you can keep up with your finances even if you're away from the office.
2 - Automated processes
With cloud accounting, you can automate mundane tasks like invoicing and bill payments. This eliminates the need to enter data manually, saving you time and energy that can be put towards other activities. Automation also helps to prevent human errors, making your financial data more accurate.
3 - Real-time collaboration
Cloud accounting allows multiple users to access and collaborate on financial data at the same time. This makes it easier to have real-time conversations about financial issues and make timely decisions that can help your business grow.
4 - Automated data entry
No more manually entering data into a system. With cloud accounting software, you can automate data entry for receipts and invoices so your workspace is always up-to-date. This also reduces data entry errors, giving you greater control over your finances. Plus, let's be honest: data entry is boring and time-consuming. Automation makes it easier and more efficient so that you can put your time and energy to better use.
5 - Security
Cloud accounting software keeps your data far more secure than if it were stored locally. It's also updated regularly, so you can be sure that your data is always secure and up-to-date. And because multiple users can access the data at the same time, you don't have to worry about keeping track of multiple copies of documents.
Should disaster strike and your system goes down, your data will still be safe and secure in the cloud.
6 - Third-party app integration
Cloud accounting software integrates with other third-party apps and services, allowing you to automate tasks like submitting your VAT return or pension reports. For example, you can connect your cloud accounting software to your pension provider and upload your submission automatically after your payroll is completed. This integration also makes it easier to track expenses, giving you greater control over your finances.
7 - Simplicity
Cloud accounting software simplifies your books and makes the process of managing your finances easier than ever. By automating mundane tasks, you can free up more time to focus on other important aspects of your business. Plus, simplified and centralised data makes it easier for you to understand what's happening in your business, meaning that you can make better and more informed decisions.
Final thoughts
Using cloud accounting software can make managing your business's finances easier and more efficient. With features like easy access, automated processes, real-time collaboration, automated data entry and third-party app integration, you can rest assured that your financial data is secure and up-to-date. Plus, you can use the extra time saved to focus on other aspects of your business, giving you a competitive edge.
Making Tax Digital for Income Tax means that if you are self-employed, or a landlord, it will be compulsory to keep all accounting records digitally from the following dates:
- 6 April 2026 - if you have an annual turnover from business or property of more than £50,000
- 6 April 2027 - if you have an annual turnover from business or property of more than £30,000
We strongly recommend moving over to digital records now and not waiting until you are required to. Every business can benefit from access to more information and simplified systems as well as giving you plenty of time to get to grips with the accounting system of your choice. If you don’t know where to start with any of this, we would be happy to assist you from choosing the best system for your needs, to even providing training for you and your team. Drop us an email to find out more:
