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Advantages of cloud accounting

Advantages of cloud accounting

In the last couple of years we have seen several of our clients say goodbye to traditional accounting software and move across to software which is held in the cloud. Whilst cloud accounting allows users to access their data here and now from anywhere in the world, our clients find that the major benefit lies in the interaction with us as their accountants.


Traditionally our clients have used software packages such as SAGE, TAS or QuickBooks and we were reliant on them to enter basic data accurately. Often when presented with the accounting information we found that the record keeping was inaccurate and incomplete despite the client preparing the information to the best of his/her ability. Our task was then spent unravelling the problems and turning the records into something meaningful which could be used to prepare accurate financial accounts. The cost of carrying out this work had a knock on effect namely that the client’s accounting budget was spent in the accounts preparation function with nothing left to pay for the pro-active and growth services which we can provide.


Accountancy software providers have jumped on this situation and endeavoured to provide solutions in the form of cloud accounting which is particularly suitable for the SME and micro-business market. Products such as those provided by Freeagent. Xero, Clearbooks and Prelude Online have come to market in the last few years but what advantages over traditional software do they really offer?


Cost savings


Most cloud accounting solutions avoid the requirement to make an upfront financial commitment to purchase the software as they are usually purchased on a subscription basis.


Easily updated


As we are all aware the accountancy rules are constantly changing and cloud systems make the problems of updates, version upgrades, maintenance and system failures a thing of the past as they are managed by the system provider.


Ease of access


Cloud solutions allow the user to access their data from anywhere in the world – all they need is an internet connection.


Up to date information


Cloud systems provide real time financial information which allows the financial team to make better decisions based on current performance and allows them to discuss their current financial situation with their accountants based on hard fact as opposed to supposition.


Simple data entry


As accountants, we realise that many of our clients are not financial savvy, why should they be? Most cloud products make data entry as easy and error proof as possible – for instance, bank statements can be uploaded directly into the software thereby ensuring that the bank transactions are recorded 100% accurately leaving the client or accountant to allocate them to the correct account heading.


The accountant can also dip into the software and make the tricky entries that are outside his client’s scope such as depreciation, prepayment and accruals. The accountant can also take a look at how his clients are performing on a regular basis without the need to disturb them from their main tasks of selling or producing.


Cloud accounting provides many of the solutions that SMEs have been looking for in connect with their financial function – if you have any queries or need further advice in this area please do not hesitate to contact me or one of my team.

 


  

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Disclaimer


The information provided in all of our blogs reflects only a narrative of some elements to consider on the topic. The blogs do not contain considered legal or accounting advice and should not be relied upon as advice. Please see our website's terms and conditions for full details of our disclaimer. If you are interested in obtaining advice, please contact us and one of our accountants will be happy and able to advise you on your own particular circumstances.

 

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