Keeping good financial records is so important but for many businesses, bookkeeping can feel like such a headache.
As Accountants, we can see how traditional accounting software and paper systems can stir up these feelings. These methods of accounting can leave you feeling taped to your books or relying solely on single device for financial data. In fact, accounting has long been understood to be a vacuum of time and effort, whilst errors during tax season could lead to large expenses and added stress.
But this no longer has to be the case.
With more and more organisations switching to online accounting software there has to be persuasive reasons to make the switch. But, if you are unsure of online accounting software and the potential benefits to your business, you could be left thinking...is it right for me?
What is cloud accounting software?
Cloud accounting software is a form of cloud computing that allows your organisation to record the flow of money for internal review and external auditing. Through it you can simply access the financial situation of your organisation in just a click.
As this is all online, you can access this data at any time, anywhere and from any device - so long as you have an internet connection.
Why should you make the switch to the cloud?
1. It saves you time - and money!
If you have multiple customers, employees or stock, accounting software can be hugely beneficial in particular. And, as your business grows, the more there is to track, the more likely something gets overlooked. Think invoices, customers, rent, salaries and stock. From your account, you can set up professional recurring invoices and receive updates when they’re opened.
Today many cloud-based accounting systems can have multiple users collaborating with your team and accountant to create a more streamlined system that is absolutely essential to many small business owners.
By saving you time, online accounting software also saves you money. The speed and efficiency of accountancy software allows you (or your accounting team) do more in the same amount of time, opening up precious time to doing exactly what you do best.
Online accounting software often involves a tiered monthly or annual pricing system to match you and your business. Depending on what features you are after, these prices can start from as little as £5. That is a huge cut from the big upfront charges for traditional accounting software.
2. Control your cash flow
A crucial part of business management is controlling the money coming in and out of your business at a given time. You can easily manage your cash flow by scheduling payments and batch paying suppliers at the touch of a button. Long gone are the days of flicking through contact lists and spreadsheets, you can now keep a bird eye view over your business and its cash flow.
In an instant you can have an overview of your current financial position with details of your profit, loss, expenses and tax summaries. And all without the need to dig out your calculator, dive into multiple spreadsheets or nosy through files.
With many apps popping up alongside cloud-based accounting software, it is now easy to access and update your accounts on the go from your mobile.
3. Prepare for taxes
When it comes to filing your taxes, accounting software keeps everything neatly organised ready for a relaxed experience during the tax season. You can easily stay on top of your accounts when compiling and exporting documents and receipts to send to your accountant or when diving into it yourself.
4. Maths made easy
Accounting software helps to increase the accuracy of your financial records as well as eliminating the risk of human errors in calculation. Whilst you may be a numbers whizz, manual bookkeeping can involve lots of calculations by hand which, if an error occurs early on, can have a great impact on the end balance of your accounts. This can be even more important as your business continues to develop and grow.
Xero, the accounting software that we recommend, takes its information directly from your online banking. This means you never have to worry about making a mistake whilst putting those numbers in.
Bonus. Consider your competitors?
And if that doesn’t encourage you to make the switch, take a minute to think about where you competitors are organising their accounts. More than likely they are saving money, time and a huge headache by using cloud accounting software.
So how easy is it to switch accounts?
Here at BCT Accountants, we aim to make it as straightforward as possible to switch your accounts online. Following your FREE initial consultation we will consult you and your accounts and transfer your accounts securely.
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If you feel your business would benefit from help with your cloud accounting software, please do get in touch with Catherine on 01423 431889 or email her at catherine@bctaccountants.co.uk for your FREE initial one-hour consultation.