11 Jan Should my SME make the switch to cloud accounting?
Cloud accounting refers to the process of moving traditional accounting online – more specifically, to the cloud.
It can do everything that traditional accounting does but uses third-party APIs so that businesses can make better and easier use of their finances. Cloud accounting is especially useful for SMEs, as it’s much more versatile than traditional methods of accounting. To demonstrate what we mean, our team have outlined some of the scenarios where cloud accounting can really benefit small businesses.
Whether you’re getting ready to meet with a supplier and want to take a fresh look at the numbers whilst on the train to their factory, or are working at home because you must self-isolate, cloud accounting is essential. As long as you have a secure and reliable internet connection, your accounts can be accessed from your laptop at any time. This also allows other employees with the right credentials to access relevant information when needed without you both having to be in the same location.
Paying VAT online
Cloud accounting can also be useful when paying VAT online. Making the whole process much speedier and more streamlined, you can use the relevant tax return templates to make your payments. It also records each transaction that you make, giving you a paperless record stored with easy access directly onto the cloud. This makes it simpler for relevant employees to access, as they would simply need to log into the cloud rather than pestering and disrupting your workflow for a hard copy.
Reducing admin workloads
As cloud accounting is used online, it’s quick and easy to connect your finances to third party bookkeeping apps. This is useful as it can reduce your team’s admin workload, increasing their productivity elsewhere. Rather than manually going through and totting up cash input vs output, for example, a third-party app can automatically do this for you with added accuracy, removing the potential for human error.
For more information about making the switch to cloud accounting, be sure to contact our team at SQK Accountancy today.