Online accounting software is a game changer when it comes to accounting and tax, and it is here to stay. You may have avoided it so far, but the reality is that it will make your life much easier. So is it time to embrace it? This month we look at the benefits of cloud accounting and how it will change your business for the better.
The pros of online accounting
They are many and varied:
- Lower cost. Instead of buying a software package, which you will need to update on a regular basis to get the most up-to-date version, you rent it on a month-to-month basis. You have no obligation to continue with a service if it is not the right one for you and can change at any time.
- Accessibility. Since your accounting software is now stored online, you can access it from anywhere and at any time – all you need are an internet connection and the login and password details. You also don’t need to have the single computer that software is installed on. You can use your laptop, phone, or tablet.
- Real-time updates. No more waiting around for updates to download and install, the onus is on the software provider to keep their programmes up to date. Less maintenance for you, more time to go out and win more business.
- Quick reconciliation. Gone also are the days of double-entry accounting. Online software tools will automatically reconcile your orders, invoicing and payments so you don’t have to.
- Business planning. You can make business decisions based on the latest data enabling you to make quick choices if you need to when a client asks for something or an opportunity comes your way that you were not expecting.
- Submitting tax returns. You don’t need to be tied to your desk to do this every year any more. The automatic reconciliation features of online accounting mean that the information you need is readily available. Some packages can even calculate payroll and sales taxes ready for filing.
Realistically, there are none. While there have been some concerns regarding data security and privacy, the reality is that online storage of your data with a reputable company is actually safer than storing them on your laptop or desktop. Online accounting software providers will quickly be out of business if they cannot guarantee the safety of your data so they employ the latest security features and the highest encryption levels of the sort that banks use.
Will I still need an accountant?
The short answer is yes, but they will work in a slightly different way. By having access to your online account they can keep up to date with how your business is doing and raise any potential opportunities or problems sooner rather than later. They can continue to help with business planning and filing tax returns and can do so more quickly as they will not have to crunch all the numbers first.
Want to know more about how online accounting software can make your life easier? Our team at Hammonds Accountants is here to help. Available on the phone on 020 8249 6328 or via email at our job is to help you grow your business.