- What is cloud accounting and why should I have it?
From April 2018, many self employed businesses and landlords will be required to file summarised accounts data on a quarterly basis. All your data will be kept in a digital account – one of the biggest changes for 20 years. Therefore, rather than completing a tax return reporting what has happened, you will be required to submit data in real time, as it happens. HMRC will also be able to get information from third parties such as banks, employers, pension providers. Read more here. This means that you will need to start using cloud-based accounting software.
Whatever the size of your business, small or large, there are many advantages to cloud accounting. It will allow you to work faster, smarter, view your financial information in real time (rather than just when your accounts are prepared) and will allow your accountant to provide more relevant, up to date advice.
How do we know this? Because we are on it, alongside many of our clients which means we are already Cloud Accounting Experts! Therefore we can guide you through the whole process including getting you up and running with your cloud accounting software.
- What does working ‘on the cloud’ actually mean?
The cloud basically means you have your own space on the internet for all your accounting data. This makes your data and software available anywhere, at any time. All you have to do is log on and you can see everything that is normally currently available on your own hard drive.
The cloud is not just about accounting, it’s everything that allows you to continue working normally wherever you are. As long as you have internet access, you can view your normal desktop from any device, anywhere.
Consider the advantages of this if you implement a more modern, hot-desking, home working culture?
Even better, our clients can see their own information in real time, at any time during the year. Gone are the days that you have to wait until months after the year end to see how your business is doing. Cloud accounting solutions have great reporting facilities and you can access this not just from your PC but your mobile devices too. Now, together, we can assess performance throughout the year and recommend solutions to improve profits or reduce costs and provide timely tax planning.
- I’ve got accounting software – what’s wrong with this?
Ask yourself are you getting the most out of it. Is it cloud based? Does it have good reporting? Is your bookkeeping always up to date? Does your accountant talk to you during the year about your business or does he/she have no idea how your business has performed until the year end accounts are prepared (probably many months after the year end)?
For more information on how McPhersons Chartered Accountants and Tax Advisors in Hastings, Bexhill and East Sussex can help you with Cloud Accounting, please contact us.