There’s no question that the introduction of Making Tax Digital (MTD) is changing the compliance landscape for accountants and their clients. And that means accountants are playing an even more important role in guiding businesses through the changes.
The world is moving towards cloud and accounting practices are no exception either. In the past, manually inputting the data in the accounting software was considered equivalent to keeping your books up to date. However, the times have changed now. With the advent of cloud technology, accounting practices and services have taken a turn for the better. Managing your cash flows, taxation and financial statements have all become much more manageable and safe at the same time, thanks to cloud accounting.
Compliance and technology trends are the hot topics for businesses and therefore, adopting new technologies and making some in-house accounting changes has become necessary to remain competent. Adapting the latest accounting practices not only for the business, but also for the clients. In this post, we aim to talk about the benefits your business, your clients and your employees can reap by streamlining your accounting practices.
You have probably heard of cloud technology and systems. Most of us have used them without knowing it . For instance, if you have ever shared files on Dropbox, or used online software like Microsoft Office 365, you have used a cloud system. Basically, any system that stores your data at a remote location, and makes it accessible to you online anywhere on the planet, is a cloud system.
Cloud accounting software has the same working process. It can be used like any common accounting software except for one thing: The data of your clients’ accounts is not stored on your computer, from where it can be easily stolen, lost or deleted, but it is stored on the cloud (remote servers).
This allows you to access your data from any device, anywhere, anytime. This means that you can check your files on your smartphone during a commute, update them from your tablet, or use a laptop to do so. If you are still not convinced, and need some tangible incentives to move your accounting practice on the cloud, here are some benefits:
1. Reduce Operation Costs
Buying hardware and obtaining and maintaining servers (in the case of a business firm) are expensive activities that are vital in a traditional accounting business setting. But if you move to the cloud, there is no need to buy or maintain hardware or an IT room. Your monthly fee would include the cost of both the software and the hardware, and would be lower than what you used to pay before. The best part is that all the IT costs that you pay to a third party (your cloud service provider), can be deducted in the year that they incur. This eases your budgeting and taxation.
2. Become Your Clients’ Preferred Advisor and Increase Revenue
Cloud accounting streamlines your business workflow by reducing the inefficiencies and bottlenecks in the process. It means that you can operate on a low budget and provide excellent service to your clients.
The time taken on the traditional services like accounting, bookkeeping and tax preparation is reduced. This is why moving your accounting practice to the cloud gives you the time you need to provide consultation, expand your business, and engage with your clients rather than waste your resources on handling data. And instead of fixing data inaccuracies and preparing financial reports, you will have more time to provide financial guidance to your clients and advise them on business decisions. This type of personalised service will encourage small businesses to gravitate to you.
With more time on your hands, you will be able to handle more clients and rake in more profits.
3. Your Clients’ Accounting Data Will Be Secure
Reliable cloud service providers maintain their equipment and software and ensure that all security patches are in place, so that no data loss occurs. The most common security features in a cloud service include:
Topics: cloud accounting