How cloud accounting can help future proof your business29/06/2023
The use of technology in entrepreneurship and small business continues to transform how we run our enterprises. Accounting is one industry that has seen a tremendous technological transformation, as more and more small firms make use of cloud accounting’s benefits.
Cloud accounting is not just a fad; it makes businesses more efficient, more sustainable, and provides them with a vital tool for more effective money management.
Many businesses are transitioning from in-house data centres to cloud platforms to reduce costs (for example, Uber in February this year) and decrease energy use, thereby making them more sustainable, too. Transitioning into cloud accounting, and offloading these data storage costs, can result in significant savings.
Additionally, Making Tax Digital (MTD) has already walked UK businesses towards cloud-based accounting services. MTD was introduced in April 2019 for all VAT-registered enterprises above the VAT threshold. Businesses are expected to use HM Revenue & Customs (HMRC) compliant software to file their VAT returns and maintain digital records under this system. This is easily achieved by using a reliable cloud accounting platform.
By digitising the tax reporting process, MTD simplifies it, lessening the workload of physical paperwork and lowering the possibility of mistakes. Because of the time and accuracy savings provided by automation, firms are free to concentrate on their core activities. MTD also improves record-keeping capacities, giving firms the ability to preserve structured and accessible tax data.
Additionally, cloud accounting can offer your business the following advantages, which could be vital to remain competitive in the future:
- Businesses are better abled to identify patterns, solve problems right away, and prepare for the future with the help of real-time data cloud accounting platforms
- Compared to traditional software solutions, which necessitate significant expenditures in infrastructure, software licences, and maintenance, cloud-based solutions frequently have lower upfront costs
- A higher level of security is provided by cloud accounting solutions, which also include data encryption, multi-factor authentication, and frequent data backups
- Cloud-based solutions let you work from any location at any time, as long as you have an internet connection
- Businesses may easily and rapidly increase their cloud subscription to handle more users, more customers, and extra services, becoming scalable with much greater ease
- A simplified workflow and a decrease in data input mistakes due to the seamless connection of cloud systems with other cloud-based business solutions, such as payroll software or inventory management
For small firms, cloud accounting has a wealth of benefits. It may not only make your financial procedures simpler and more efficient, but it can also give you insightful information about how your company is doing, empowering you to take wise decisions.
If you want to learn more about cloud accounting, and how you can get the most out of it for your business, call JW Hinks on 0121 456 0190. Our commitment to traditional standards and modern technology makes us the perfect people to help you manage this extremely valuable transition.