Over the past couple of years, the bookkeeping and accounting profession has seen one of the biggest changes in management information systems since the introduction of spreadsheets.
With the increased demand for real time data, the use of online accounting software has increased dramatically. Here, we have listed the key reasons why you might want to make the switch into a more modern accounting world:
1. Access your accounts anywhere
With improved fibre broadband, mobile data speeds and smartphone apps, there’s no need for you to be restricted to your desk. Accounting software providers such as Xero, allow you to access your accounts from smartphones, tablets and laptops, so you can keep on top of your finances on the move and through the cloud.
2. Automate the posting of your bank data
Many of the cloud solutions now support bank feeds so that your bank transactions can automatically download directly to your account. This reduces processing time and eliminates data entry errors. It can also post the transaction directly for you.
3. Less boring data entry
Software add-ons such as ReceiptBank can automate the data entry of supplier invoices. Instead of keying them all in one by one, you can simply email them in or take photos and the mobile app will do the rest for you.
4. Payments at the click of a button
Some cloud solution providers integrate online payment options when you email across invoices. This means that when your client receives the email, they can simply click an option to ‘Pay Now’.
5. No more need for storage
Because everything is stored in the cloud, the need to keep physical records can be dramatically reduced and eases the capacity on your I.T infrastructure. Sales invoices are automatically retained on the system remotely, and you are also able to upload copies of purchase invoices.
6. Customise it to your business
As well as the main accounting functions Xero gives you, there are a wide range of extra add-ons. These add-ons can include; credit control, bespoke reporting, simpler invoicing solutions, stock management and online invoice payments, enabling customisable solutions to streamline your processes.
7. Work where you want to
Without the need to access the data on a specific PC, bookkeepers can do their work from their own office, the local coffee shop or at home. With the pace of modern life, it’s essential that the accounts and management information is accessible anywhere.
8. Secure with no worries
Your data is held securely and encrypted on offsite servers, without the need for you to worry about your own in-house data integrity.
9. Ongoing easy support
As your data is stored remotely, any queries can be looked at easily by your provider, as they will have their own ‘adviser’ login to your account.
10. Program updates as and when
You will always be using the most up to date version of the software, meaning you won’t need to buy yearly program updates. Gone are the days of expensive frustrating software upgrades to keep your accounting software up to date.
Whilst any one of the above points could convince you to move your accounting processes to the cloud, if you take into account all of them these days it makes commercial sense to make the move.
Cloud accounting isn’t going away and is only going to make life easier going forward. With government initiatives such as Making Tax Digital now in effect, it ensures businesses can stay compliant.