Overview of Cloud Accounting Software
Our reliance on technology continues to grow. The last two decades have seen unrivalled advances. Devices are expanding in capability and shrinking in size. The solutions available today provide a huge advantage for those that use them. And that is the problem. Whilst there are people working hard to make our lives simpler, there is a large number who refuse to be helped.
We have found that the UK has the highest number of desktop accounting software users amongst nations of a similar status. 28% are still reliant on the outdated desktop. Like all good things, this must come to an end. Many feel safe using software they know and trust but is that trust worth falling behind competitors?
The benefits of cloud accounting software are so strong that you can’t afford to wait any longer. MTD is mandated for April 2019, meaning the switch to digital is set in stone. You will be required by law to submit VAT returns digitally, for clients above the VAT threshold.
There are mandates being finalised for other taxes like income tax to be submitted digitally by 2020. The future of accounting is digital. But you can take advantage of digital software today.
Cloud Accounting Software: What is it?
The cloud is a platform that allows you to access data with an internet connection. Any device, any location, any time - the cloud provides constant access. Every time you log in to your online banking, you are using the cloud. Hard-drives are no longer needed to access data.
The cloud reflects the changes in society. We are constantly moving and need 24/7 access to our data. The cloud allows for that.
Cloud Accounting Software: Why do I need it?
For long-time desktop software users, the change may seem unnecessary. You may not see any problems with your current solution and are wary of new technology. Truth is, it’s time to upgrade. Desktop software isn’t as good as cloud software. Here’s a list of how:
Out of date: Technology has got better. Think of the improved capability a smartphone has today compared to 10, even 5 years ago. Improvements are constantly made and software is no different.
Restrictive: Only one person has access. This hinders workflow and reduces practice efficiency.
Dangerous: By only working on one system it causes data to be transferred between devices. Moving data through USB sticks is unsafe and unnecessary.
Data not stored safely: Backups are off-putting. They are time-consuming and expensive leading many to ignore them.
Lack of support: It is costly and often hard to come by.
Cloud Accounting Software: What are the benefits?
Accessible: The cloud can be accessed from anywhere. It provides more freedom to you and your clients who no longer have to come into the practice for meetings. Xero found that 58% of small business owners won’t expect to speak with their accountant face to face. The expectations of the client are changing and the cloud provides the desired accessibility.
No hidden fees: You pay a monthly subscription for your plan and there are no hidden fees. Solutions like Nomisma offer a modular approach so you only pay for what you use. If you just need, bookkeeping software or payroll software then that’s what you get.
Integrated: All your data is managed by one solution. If you need more than just bookkeeping, the cloud provides this. Integrated suites like Nomisma sync all your data across the different modules. Company secretarial software, payroll software, self-assessment software and more, all in one place. Nomisma translates your data across all modules.
Automate your processes: Cloud accounting software improves your practice management. Cloud solutions include invoicing software. It will automatically create invoices and remind you at set intervals so you don’t waste valuable time chasing clients.
If you integrate with the payroll module it will also generate those vital payslips automatically.
MTD-compatible: HMRC will mandate making tax digital (MTD) in April 2019. Cloud accounting software is how you will file vat returns online. From next April, by law, you must use submit vat returns digitally. So, why not get the benefits today?
Real time data: The software updates automatically with every data input. You don’t need to wait for quarterly intervals to update the information. This allows you to provide better service to your client as you are more informed.
Add value to relationships: Improving the efficiency of your workflow creates more time. This allows you to become an advisor rather than a compliance agent. Xero found that accountants are trusted 15x higher than financial advisors. Use the trust your clients have in you and bring value to your relationships.
Constantly Improving Software: The online aspect of the cloud means that updates are easy. The software is constantly developing and easily implemented.
To see how Nomisma’s cloud software can help your practice, Try Nomisma.