Over the years, technology has gone through vast changes; clunky computers have become slim laptops and phones, sending letters has been replaced by texting.
The upcoming Making Tax Digital scheme by HMRC has brought cloud accounting to the forefront of entrepreneurs’ minds. The launch of MTD has been delayed to allow businesses to adapt, but it will gradually be introduced from the 19/20 financial year. Businesses with a turnover above the VAT threshold will have to keep digital records for VAT purposes as of April 2019, and the scheme is expected to be implemented further in 2020. The Making Tax Digital scheme will be available for smaller businesses on a voluntary basis.
Even if you are not yet obliged to keep digital records, that doesn’t mean you should delay getting accustomed to cloud accounting. The benefits of cloud accounting can help you to manage your business efficiently. We would know as we have been using Xero (an online accounting software) for years now and are an official Silver Champion Partner with Xero.
Colleagues can collaborate
Do you have colleagues that need access to the accounts but aren’t in the country? Online accounting software covers that issue for you. As cloud accounting requires access to the internet and can be accessed from any device, colleagues from across the globe can update and work on account data from wherever they are. Think of it as logging into your bank account online and checking recent transitions – it works in a similar way.
Work from anywhere
In the past, dealing with your accounts usually meant you were tied to your desk in front of large stacks of papers. As time went on it meant being tied to your desk where your computer was. Cloud accounting software allows you to work from anywhere at any time of day. Of course, it only works if you have internet access, something that can be found in most public places across the country.
Safely stored account information
Cloud accounting means you no longer have to worry about deleting or losing account data. The cloud automatically backs up the work you have done, keeping it safe. Additionally, you can easily recover data that may have been deleted accidentally. As an entrepreneur, running your own business requires a lot of time and effort put into each aspect of the business. You can’t afford to waste time worrying about data you can’t find.
Furthermore, cloud accounting software is safe from cyber attacks which means you don’t have to work about data being stolen from you. Stolen data is a huge risk for businesses (of all sizes) as it can be used against you or as a means for ransom, both of which can seriously damage your business financially.
Berley understands how difficult it is to transition into a new way of doing things. Our accountants are here to help with that transition and can also assist with accounting and bookkeeping – it is what we do.