Many businesses are moving to online accounting as it brings a number of practical benefits and helps compliance with HMRC's Making Tax Digital.
Many of the business owners we work with say online accounting has given them greater clarity and control over their organisation’s finances. Here’s a simple overview if you are considering moving to the cloud.
Three distinct benefits
Ease of access. With online accounting, you can access your bookkeeping records from any device with an internet connection. So you could easily produce and email an invoice to a customer using your phone as soon as a job is done or the order is placed. You can also get a bank reconciliation at the touch of a button.
Peace of mind. Your records in the cloud are securely encrypted. You don’t need to worry about backups, and software updates happen automatically, eliminating the risk of software becoming out of date.
Integration. Your records can be linked to other systems and software. This not only enables your business to work seamlessly and more efficiently, it also helps you gain a clear and current view of your organisation’s finances and performance.
Overall, cloud accounting makes the process of producing and accessing financial information quicker and easier. Many business owners say they feel more ‘in control’ as a direct result.
Making the move.
The first step in making the move is to find the right cloud software for your business. There are plenty of impressive and reputable providers in the market, and many offer free trials so you can see and feel how they work before you buy. If you are pushed for time, however, we can certainly help.
| Shipleys is partnered with Xero and Dext (formerly Receiptbank). We are also Quickbooks certified and experienced in other software providers such as Free Agent and SAGE. |
A helping hand
Our experience in this area means we can help you in a number of different ways. Here are some examples of how we’ve enabled businesses to make the move to cloud accounting successfully and painlessly.
- Converting existing accounting systems and records to the cloud software.
- Training the business team and establishing easier processes.
- Setting up the management reporting and forecasting.
- Helping businesses prepare and comply with Making Tax Digital.
- With the business’ permission, access records to help ensure they are being kept properly, review business performance and targets and answer any technical queries.
Making Tax Digital for VAT
All VAT-registered businesses must follow HMRC’s Making Tax Digital rules regardless of turnover. HMRC now automatically signs up all new VAT-registered businesses to MTD for VAT unless they are exempt from MTD registration or have applied for such exemption. The rules specify businesses must keep records and submit VAT returns digitally using compatible software. You can check HMRC’s website to find out the latest list of online accounting software providers which are compatible.
Cloud accounting’s time-saving features:
- Quickly produce quotes and sales invoices, which are automatically incorporated into your accounts.
- In-built links enable customers to pay directly upon receipt of your invoice.
- Integrations with your bank account show who owes you money right now and make bank reconciliations easier.
- Scan, photograph, or email receipts and purchase invoices to automatically upload them into your records – even when you’re out of the office.
- User-friendly and simply presented information showing the latest customer and supplier activity in relation to your finances.
- Many software providers now integrate with HMRC to make a hassle-free Making Tax Digital submission.
Specific advice should be obtained before taking action, or refraining from taking action, in relation to the above. If you would like advice or further information, please speak to your usual Shipleys contact.
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