Why and how you should move your accounts to the CloudPosted 2017 by Chris Davies
Traditionally businesses have kept their accounting records in three general formats; manual records, spreadsheets and desktop systems.
Each of these has always been less than adequate but with the advent of cloud computing their weaknesses have become much more apparent.
Whilst manual records are easy to set up, this is a false economy as it takes hours to enter data, add up and reconcile. All of the time taken either eats into the business owners productive time or their valuable family time. Furthermore, they are inherently inaccurate with few checks and balances. Consequently end of year accountancy fees are much higher than necessary.
Spreadsheets do offer an element of automation over manual records, but again they are often inaccurate. End of year accountancy fees are often higher than necessary as the accountant is presented with a mixed bag of spreadsheets from his clients which means that each task is unique and involves a great deal of personnel time.
Desktop systems do have some advantages over manual records and spreadsheets but come with a host of problems. Not least expensive updates, security backup issues, and then those weeks of hiatus every year when the backup is sent to the accountant and returned with adjustments for restoration onto the system.
Cloud packages have obvious advantages. They can be accessed 24/7 anywhere with an internet connection. Updates are made automatically so there are no upgrade costs and backups are made continually on remote safe servers. Large parts of the bookkeeping (such as bank feeds) can be automated, freeing the business owner to spend his time more productively. The accountant can access the data from his own PC meaning that timely advice can be given to the business owner to drive the business forward.
But how do you make the switch onto the cloud? How do you know which of the myriad of products to choose? A mistake choosing the wrong product at this stage could prove very expensive in the long term.
Our Outsourcing team have experience of all of the major players in the market. They will talk to you, analyse your businesses current and future needs and can advise you which product is best for your business.
What is more, they can help you with the set up process including entering the Chart of Accounts and setting up templates. They also offer training packages so that you can be confident that the information that is produced is accurate. That way tax liabilities can be kept to a minimum and you can be confident that the tax man will not uncover mistakes at a later stage. Furthermore, the business decisions that you make will be based on a true reflection of the business finances and the outcomes of those decisions can be quantified.
Finally the Government’s plans to move businesses onto quarterly reporting to HMRC starting in 2018 means that these businesses will require at least some form of digital reporting software, so existing manual records, spreadsheets and desktop software will no longer be adequate.
If you would like to know more about moving to the cloud please get in touch with either myself firstname.lastname@example.org or our Outsourcing Manager Jenny Bowden email@example.com and we will be happy to talk through the options with you.