What are the benefits of using cloud accounting systems?
With HMRC looking at rolling out its Making Tax Digital initiative over the next few years, there’s never been a better time to take a look at your accounting system and perhaps give it a thorough overhaul. If you’re still relying on pen and paper, you’ll need to implement a compatible digital system anyway to file the proposed quarterly tax returns. However, you will still face a choice over whether to use a desktop system or to migrate to the cloud. Here are five benefits to using cloud accounting systems.
Using digital accounting packages can allow you to access automated data collection, storage and retrieval functions. It can also help you to automatically make error-free calculations and provide you with a clear view of key metrics related to your business. This factor should equally apply to both static (desktop) and cloud-based solutions.
As with many other cloud-based services, cloud accountancy can be easily scaled to match your own requirements. This essentially means not paying for capacity or usage that you don’t actually need. If your business grows or requirements change, you can easily scale up the services you require.
Keep up to date
Cloud-based systems can be regularly updated without you having to overhaul or replace the entire system as might well be the case with a desktop system. On a desktop system, you are also constantly dealing with redundant data, whereas good cloud accounting systems can make use of real-time data.
Cloud accounting can ensure the right people have access to the information they need, when they need it. With the right permissions and security protocols in place, key workers can access important data while third-party accountants or off-site team members can also access accounts at a remote location. It also can be useful for businesses with a bring-your-own-device (BYOD) policy.
With cybercrime on the rise, security is of paramount importance. Cloud service providers have access to the latest security solutions, and their servers also tend to be kept more physically secure than in-house servers and paper documents.