The future lies in cloud accounting
We’ve paired up with our friends at Nordens to bring you an article on how cloud accounting has evolved over the years, and the benefits that businesses can gain from it.
The accounting industry, along with the instantaneous advancement of science technology, has evolved considerably over the past two decades. Accounting software used to be more aimed at bigger businesses, however nowadays with an increasing number of platforms now available for smaller traders, as well as the Making Tax Digital deadline looming, soon all businesses and individuals will have to become adept. Before, accounting software was more geared towards helping the accountant, whereas now the accessibility, personalisation and general low cost puts the end user firmly at the forefront of proceedings. During the pandemic, many companies who haven’t embraced the evolution in technology have seen their competition pass them by, falling behind in not just sales but also credibility and accessibility.
In this day and age, every company should have some form of digital footprint, whether that be through social media, a website, an app or in many cases all three, to stand a chance of penetrating their market and generating success. This is none more apparent than in accounting, where the age-old stereotype of a small office of accountants doing everything manually is effectively extinct. Most accounting practices have grasped the influx of new technology, software and apps and have found ways to integrate these new methods to not just benefit their company but also the businesses they work with..
Perhaps most important when it comes to cloud accounting is that it increases the internal efficiency for businesses. This essentially means that those boring, mind-numbing tasks such as uploading bank statements and VAT receipts are no longer required. What is very much understated when it comes to cloud accounting is the capacity it brings to provide analytical information that is so useful for not just business owners but also accountants. This enables forecasting and scenario planning, which is always recommended no matter how big you or your business are.
A lot of digital platforms don’t just solely focus on bookkeeping or even accounting anymore. For example, people who have needed additional financing during COVID have used certain platforms to access this which has been a lot quicker with information coming straight from the bank. This means because these platforms are integrated and verified with the banking system, safety is never in question.
Xero, which is probably the most-well known and popular cloud accounting software in the world, when paired with Dext (a data extraction app) work so well together. This is where the business owner can automate the manual entry, having their bank feed live data through the platform and software whilst typing up the expenditure. All the business owner needs to do is take photos of receipts or invoices as they spend. There are also so many other really useful addons such as Fluidly, which seamlessly does cashflow forecasting for businesses based on real time information (RTI). This gives them the tools within the palm of your hand to make informed decisions for their business that could alter the future.
For accountants, having simultaneous access to the software means they don’t need to pester the business owner for information. It also enables them to be able to pull off management reports, tax planning, filing VAT returns and a whole host of other services without directly contacting the customer.
What really needs to be understood from the business owner perspective, is if they don’t necessarily fully understand the system of cloud accounting, or the information inputted is incorrect, then it could be even more detrimental and damaging than not doing cloud accounting at all. Talking to someone in cloud accounting allows the customer to gain information and insight into the processes, giving them confidence and security to undergo the digital development needed.
Outsourcing everything to a cloud accounting department like Nordens Chartered Accountants, takes away the monotonous aspects of the business and provides the business owner with a final report to use wherever and however they wish. It also allows them to correctly reclaim VAT, apply for support schemes or additional funding, whilst crucially increasing the transparency between the accountant, HMRC and the business owner, thus making everyone’s job that bit easier.
The future, and to honest the present in fact, lies firmly in the cloud. Now is your chance to embrace it and take your business to new heights.
The Cashplus Business Bank account comes with some very helpful features such as receipt capture, spending insights and also integrates with most leading accountancy software. Find out more about the Cashplus Business Bank account, where you can apply for an account in minutes and get an instant online decision.
This content was created on 10th May 2022
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