Are you holding back when it comes to switching to cloud-based accounting software?
Maybe you’re stuck in a world of spreadsheets, receipts and paper-based invoices and haven’t had time to consider your options. Or perhaps you’ve looked into it but are worried it’ll be complicated and take too long to set up.
At Angel Bookkeeping & Payroll Services, we understand it can be daunting to swap to a new way of doing things – even if the old way takes longer than you’d like.
If that’s you, there’s no need to worry because our experienced team can get you up and running in no time.
What is cloud-based bookkeeping?
Cloud-based bookkeeping, or cloud-based accounting as it’s also known, is a means of recording and storing your financial records online.
Instead of using paper-based systems and spreadsheets, you simply input your income and outgoings – including receipts and invoices – into an app which connects to Sage, QuickBooks or Xero. These apps connect directly to your business bank account pulling in real-time data so that you can keep track of your finances more easily.
9 reasons to switch to cloud-based bookkeeping:
1) You can access your accounts from anywhere
The beauty of cloud-based bookkeeping is that you can access your accounts from anywhere in the world. You don’t have to be chained to your desk or faced with a huge pile of paperwork to make sense of your numbers. Cloud-based accounting lets you access your financial records – and make important decisions – whether you’re in the office or relaxing on the beach.
2) Better communication with your bookkeeper or accountant
Having all your bookkeeping information on the cloud makes communication with your bookkeeper or accountant so much easier. If you have a question, you can both log into the system at the same time and get the answers you need.
3) Save time and money
Many people delay switching to cloud-based accounting because they’re worried about the cost. But the truth is, the software isn’t that expensive. Typically, you’ll pay around £13 a month, plus another £13 a month if you decide to integrate with an app such as AutoEntry to snap and upload receipts. When you weigh up this small fee against the time you’ll save on long-winded manual processes, it’s well worth the investment.
4) Less mess and better for the environment
When you switch to a digital accounting system, you can wave goodbye to storing boxes full of unsightly documents at home or in the office. You can even throw away your receipts once you’ve been snapped and uploaded them. Imagine not having to keep track of every receipt and paper invoice ever again! Not to mention how much you’ll save on printer ink and paper.
5) Faster data processing
Paper-based accounting can be a slow process. But instead of waiting for end-of-the-month bank statements to arrive, cloud-based software processes your data in real-time meaning everything is always bang up to date. Receipts can also be uploaded on the go giving you a more accurate overview of your outgoings. This will give you an accurate insight into how your business is performing and allow you to make any necessary adjustments.
6) Makes tax planning a doddle
Whether you’re a limited company, partnership or sole trader, it’s important to set money aside to pay your tax bill at the end of the financial year. The good news is, when you use cloud-based bookkeeping software, you can see your profit at a glance and quickly work out how much tax you owe. So, when year-end rolls around you can relax knowing you have the funds in place and won’t be faced with any nasty surprises.
7) Be ready for Making Tax Digital Income Tax Self Assessment
In April 2024, the UK government will be rolling out its new Making Tax Digital Income Tax Self Assessment (MTD ITSA) scheme. From that date, 4.2 million businesses – including self-employed people, landlords and individuals in partnerships – will have to use government-approved software to record their finances and submit them to HMRC every three months. In other words, by 2024 you’ll have no choice but to use compatible software. While it might be tempting to wait until closer to the MTD ITSA launch date, our advice is to get ready now. The sooner you start using cloud-based bookkeeping software, the sooner you’ll get comfortable with it and the sooner you’ll start reaping the benefits.
8) Only pay for what you need
As your business grows so do the bookkeeping tasks. This means that over time your spreadsheets become more complicated and time-consuming. But that’s not a problem with a cloud-based accounting system which grows and adapts with you. You can start with a basic package and add additional features and functionality as and when you need them.
9) Peace of mind
One of the best things about using cloud-based accounting software is the peace of mind that comes with it. Your financial data is stored securely and is automatically backed up. So, you don’t have to worry about losing important financial data if your system crashes or you lose your laptop or phone. Cloud-based accounting systems also reduce the risk of human error and if – in the unlikely event HMRC decided to inspect your books – you’ll be confident that everything is ready and waiting.
Expert support when you need it
At Angel Bookkeeping & Payroll Services we’re experts in Sage, QuickBooks and Xero and are here to help you set up and manage your cloud-based bookkeeping.
If you’d like to find out more about switching to cloud-based bookkeeping call Aggie on 07867 129210 today.