With the digital revolution and digital tax initiatives looming on the horizon, many small businesses are anxious about ensuring that they are compliant with the forthcoming requirements. One option to consider is investing in a cloud accounting system that complies with requirements.
In this article, chartered accountants Clayton & Brewill explain the benefits of cloud accounting systems for small businesses and how they offer much more than compliance.
Cloud accounting systems, also commonly referred to as bookkeeping software, are becoming more and more popular amongst smaller businesses. There are a wide variety of systems to choose from and are much more cost-effective and easier to use than ever before.
While you would probably require the help of managed it services in Omaha or SaaS providers to help you with the establishment of your cloud, it should be worth it. Some of the benefits of cloud accounting systems include:
Accessibility – with a cloud-based solution, you can access your information from anywhere, allowing you to run your businesses from anywhere in the world, at anytime. All you need is a phone or laptop and something like one of the xfinity plans for businesses for your internet connection.
Compliance – most cloud-based systems allow you to link directly to tax collection agencies like the IRS or HMRC so that you can easily submit VAT/tax returns. You can set reminders and alerts to ensure you never miss a deadline again. Most businesses will need to start keeping online records to ensure that they are complying with Making Tax Digital, using a cloud-based system that links to the tax department will ensure that you are compliant and ready well in advance.
Enhances your processes– an online system should allow you to automate your quotation and invoice processes. You can customise, edit, email or print or invoices or set up automatic invoicing and reminders. Most systems also provide the ability to set up quotes or estimates which then can easily be converted to invoices to avoid duplication.
Saves time – cloud-based systems often integrate with other systems and information e.g. your banking information. This saves having to manually input data and duplicate work. Effective integration, not only saves times, but is also likely to be more reliable. Having all your accounting information in one place, ensures you’ll be much more efficient.
Provides a clear overview of your business – most systems have some sort of reporting feature, allowing you to get a clear overview of how your business is performing. You can then use this information to inform future business decisions. Having an additional ERP system (similar to ones provided by companies like Eide Bailly) in place could help the firm establish a streamlined work process.
Security – an online system gives you the peace of mind that your sensitive accounting information is secure. You can easily share your information with your accountant, without having to send important and sensitive information through the post or worry that it might get lost in transit.