In an era where we shop, talk and date online, it is no surprise that accounting processes are moving with the times and business data is stored on the cloud for security and good business management. Cloud accounting software gives SMEs the opportunity to invest in a low-cost technology platform that offers more robust solutions and the ability to stay on top of financial affairs from anywhere – and at any time. Pretty powerful stuff and one which even the UK government is adopting with the now live Making Tax Digital (MTD) initiative, which is being phased in to all businesses in time.
If you’re just starting your search for a new accounting solution which can keep up with the latest technology, you’ve come to the right place. In this article we’ll cover everything you need to know and discuss why cloud accounting should be embraced sooner rather than later if you’re a small business.
Lets start at the beginning – what is cloud accounting?
Cloud accounting software is easily accessible online to download and use by anyone in your company. Your employees enter accounting information such as sales, bills and company expenses either manually or through automated processes, and you have the confidence that all business data is recorded and collated all in one place accessible by you and your clients.
For those unfamiliar with cloud technology, the “cloud” connotation refers to the information you store following you like a cloud above your head, accessible from anywhere on any device, with the right credentials. Data is stored in fact at large data storage sites in servers rather than floating in the air!
Why use the cloud?
As an SME working with an accountant who advocates cloud accounting gives you a huge advantage and an opportunity to compete with your peers and competitors. Costs and time are greatly reduced, with less time and money wasted on hardware and software and data storage space. Access to your business numbers via the cloud can be accessed by your employees with ease, from anywhere or any device. The amount of time and money saved on IT and set-up is significant, resulting in more time available to focus on your product or service offering and more of a level playing field with competitors.
Business efficiency and processes are enhanced and you can scale your SME much more easily and quickly.
Is the cloud secure?
Clearly, the accessibility of accessing the cloud is based on keeping your credentials safe. Accessing your data on mobile devices leaves you vulnerable to attack if you do not have the right data protection in place and of course you are also vulnerable if your mobile device is stolen and you do not have multiple layers of protection.
The good news is that cloud accounting packages offered by your accountant is likely to have data encryption as standard, mirroring the level of security you see when accessing your bank for example on the go.
As long as you take measures on the safety of your credentials, you can take comfort that your business numbers are safe in the cloud.
If you’re in the process of exploring cloud solutions for your small business, Mirandus Accountants can help.
Mirandus offer access and training on QuickBooks free to all our clients in London and Edinburgh through QuickBooks. As advocates of cloud accounting, Mirandus are a QuickBooks Pro Advisor Practice and work with clients on set-up and on-going support on making the most of the software, and offer access to your QuickBooks via the Mirandus app, which you can download here for free.
We strongly recommend you speak with a tax and accounting specialist like Mirandus Accountants, who can provide expert advice for your business and personal tax planning needs. We are an accounting company in London and Edinburgh who are tax accountants for the self-employed and offer accountant services for small business. You can contact us for a tailored solution to your unique business circumstances.