Making Tax Digital – how cloud accounting can help your business
Friday, 26 May 2017
HMRC have announced that by 2020 they expect all businesses to upload their profit and loss quarterly and electronically. Though we are still awaiting the details of how the logistics of it will work, two things are sure:
- it is definitely going to happen; and
- having a cloud accounting system in place will make this as easy as clicking a button.
Some businesses have concerns about the change to digital accounts, as they have been using spreadsheets or even manual records for years.
However, if you use internet banking, or have a Facebook or Twitter account, then you already make use of cloud technology. Cloud accounting allows you to take this a step further, with the ability to access and update your business accounts and finances anytime, anywhere via the internet, on a smart phone or tablet device. Moreover, the bank will feed in automatically, saving you a large amount of man hours every year, which can be used to focus on the business, or maybe even enjoy evenings with your family, rather than having to spend hours on end completing a spreadsheet.
Couple cloud accounting with a receipt-reading program and the workload could be eased even more, with no need to keep folder after folder of receipts. Also, cloud accounting will allow you to raise, send and chase invoices more easily and quickly than ever before.
On top of this, cloud accounting will enable your accountants to access your data in real time. This means you won’t need to email data across and stop working on it whilst the accountants are looking at it.
Finally, cloud accounting systems can be tailored very easily to give you reports on turnover, profit and just about any metric that is important to your business to keep an eye on.
And the best news of all, if you’re a new business, you won’t need to make the transfer across from a spreadsheet, as you can reap all the benefits of cloud accounting from day one.
The cloud accounting package we recommend to our clients is QuickBooks online, and a licence is included in all of our fee packages to new clients. If you would like any more information on Making Tax Digital, QuickBooks online or have any other accountancy questions, please contact me on 01603 937883 or firstname.lastname@example.org