What is Cloud Accounting all about?

You’ve probably heard the term ‘cloud accounting’ but what does it mean and more importantly why does it benefit your business?

Whilst I have seen quite a range of descriptions, in simple terms, it is accounting software hosted on the internet.

In some ways it changes nothing but changes everything if that makes sense. The power really comes from one word which is ‘integration’.

Once you can integrate with other services you really start to see the benefits. Here is a quick review of selected benefits of a cloud-based approach:

Benefits

• Automation
  Do you ever perform the same task each month and think “there has to be a better way?” Well, there is. Keeping track of your finances can be quite repetitive, this is where automation can help. You can set up rules, so when an event happens you can tell the software what should happen next. If that is raising an invoice, chasing a payment, or marking an invoice as paid.
• Integration
  As I said, this is where the magic is. You can connect everything from your bank account, online payments, stock management, CRM, project management, even crop and livestock management and everything in between.  No more duplication of information, your systems all talk to each other.
• Instant Access
  You can see all sales, spending, reports and more, instantly, from anywhere. This is invaluable in terms of planning and identifying problems.
• Get Paid Faster
  You can send invoices on the go or set them up to be sent on the same date every month so never forget to invoice, plus you can easily provide direct debit or online payments with a few simple steps. The system will automatically remind your clients they have an amount outstanding so avoids any awkward conversations.
• Accuracy
  Because you are not having to duplicate information and it is coming from the original source you information is significantly more accurate.
• Eco Friendly
  The days of duplicating invoices and printing all payment receipts can be a thing of the past. With everything possible online, it makes it faster and   Good for the environment and good for your business.

Why are Accountants in favour?

With all that, it does leave some people thinking – “Surely Accountants aren’t in favour of this?”  In fact, I think it is the opposite.

Yes, an Accountant’s role is to keep you compliant with HMRC.  However, it is significantly more than that.  The advice is really and truly where we as Accountants add value to your business and can help it grow.

Cloud Accounting allows a much more ‘proactive’ approach.  If company accounts are only produced once per year, it is only one opportunity to identify issues and areas for improvement.  With much more regular engagement it is possible to prevent issues as, or even before, they arise.

This is the modernisation of accounting, it will never be the same again.