Is now the time to move your accounting to the cloud?

A new way of working

We have seen a huge shift to home working during the current period. Unlike its desktop counterpart, cloud accounting software can easily and quickly be accessed on various devices and from any location, meaning your finance and management teams can access real-time information and work remotely and collaboratively.

Lockdown has also meant that working through paper receipts and invoices has been a logistical challenge for many businesses. With cloud accounting and various 3rd party scanning apps, this makes it much easier for you to go paperless with your accounting records.

Management information at your fingertips

With trading conditions impacted and cash flow a real concern for many businesses, finance and management teams are increasingly needing accurate reporting information to be available to them.

It’s no good having to wait weeks after the period has finished to get information, as you may be looking back at a very different picture. With the right integrations, cloud accounting can give access to real time information and customised management reports to support your decision making. With cash flow coming under pressure, this could be crucial in these fast-moving times.

Furthermore, for businesses looking to take out loans under the Coronavirus Business Interruption Scheme, they will most likely need to provide the necessary supporting financial information. Cloud accounting can give you easier access to accurate management information and financial forecasts.

A blank canvas for your business

We have noticed that these unprecedented times have spurred a wave of business innovation and appetite for change. Particularly on the client service side, those businesses who have remained agile and fast-moving have been able to tweak operating models to continue their trading. However, the back-office side is now also coming under increased attention.

You are probably aware of the added benefits that cloud accounting can bring in terms of integrations, such as with your bank account, CRM or invoice scanning. But what we often find when we are moving clients over to a cloud solution is that it brings about the opportunity to completely review your processes across the accounting function.

During this review, we will look at which processes and systems can be automated, streamlined, improved or strengthened. For example, we would most certainly look at your credit control process to see how you are following up on bad debt and whether this can be automated, checking how payments are authorised and discussing which metrics will give you the most useful KPI reports.

For transaction heavy businesses such as restaurants, we can look at the entire process and the integration of point of sale software with the accounting system, removing the need for manual uploads. Other such areas where integrations can provide process efficiencies include inventory management, receipt management and document collection and management.

A secure environment for your data

The Coronavirus crisis has led to increasing reports of cyber attacks and online fraud as businesses increase their reliance on remote systems. Most leading cloud accounting systems offer highly sophisticated digital security including data encryption, multi-factor authentication and secure back-ups.

It also means that we, as your accountants, will have access to your data without the need for sending large files or records to us. It means we can have more meaningful discussions with clients about what we see and what this means for their business.

Making tax digital expanding

As if small businesses needed any extra admin or paperwork at this time, the government has announced that the Making Tax Digital (MTD) programme will be extended to firms with turnover below the VAT threshold of £85,000 from April 2022.

This may seem a little way off, but it could be a real shake up for smaller businesses. By considering putting in place a cloud accounting system which is compatible with the MTD requirements now, it may reduce the headache further down the line, as well as offering all the business benefits as mentioned above.