HMRC are in the process of mandating businesses to maintain digital records, MTD (making tax digital). Cloud based accounting is changing the way accounting is being done by small and medium sized businesses.
The benefits of bookkeeping using the web are many. Chief amongst them is collaboration. Using an online system means that other authorised users can enter and view information at the same time.
The most obvious example is that, as your accountants, we can view your information during the year rather than waiting until you hand us the backup file subsequent to the year end. This provides a significant advantage because it enables us to provide tax planning advice and resolve problems at an earlier stage.
Where we provide bookkeeping services on your behalf, you are able to view information at any time without waiting to receive reports from us at the end of the month. We can also share the bookkeeping function with you and thereby ensure that you are receiving accurate financial information throughout the year, something that we believe is key to running a successful business.
Other benefits include:
- Ease of use – the interface of most online systems not only looks good but also makes the software easier to use than many traditional PC-based software packages. Furthermore, you do not have to worry about installing software updates. The system you work with is always the latest available system including all updates.
- Flexibility – because the software is operated over the web it makes no difference whether your business uses PCs or Macs. Increasingly it is possible to view and enter information on your mobile phone or tablet. Wherever you have internet access, you have access to your business accounts.
- Price – online accounting systems are priced on a subscription model. The price includes support and updates.
- Data security – online systems use major data centres to store your data and incorporate the same levels of security as your online banking. No longer do you need to worry about backing up your data or carrying the laptop to and from home.