The accounting industry has evolved dramatically over the past years. The traditional method of maintaining accounts on paper has changed into modern accounting technologies with the help of internet tools and software applications. Cloud technology has revolutionised the whole business world.
Cloud computing is the on-demand storage and availability of resources. You can use data centres for storage and computing without downloading anything to your device. This service is available to many users on the internet and can be used as a shared resource for your needs.
Cloud-based accounting solutions hold financial data on a web-based interface, which you can access from anywhere with an internet connection. It includes features such as invoicing, expense tracking and bookkeeping. In addition, many cloud-based accounting software platforms offer integrations with other business tools and solutions, for example payment taking or capturing receipts.
Advantages of this type of accounting:
You can invite additional users to your online account from both the company and accountants which will save time on sharing information and enable more than one person to work at a time.
No need to track necessary updates, it is done automatically.
Most of solutions have a mobile app version so you can use it on a go.
Easy to create on-demand reports and charts.
It enables to have your bank transactions imported directly which is called bank feeds.
The cost of accounting software depends directly on the number of features or access provided to users so you can choose.
Making tax digital for Vat is currently mandatory and businesses need to use compatible, HMRC-recognised MTD software to keep digital records and file VAT returns. There are also plans to introduce it for Corporation tax and self-assessment. Cloud-based accounting makes it happen.
Here is a list of some accounting solutions:
Sage
Xero
QuickBooks
FreeAgent
Kashflow
ClearBooks
FreshBooks
Zoho Books
In order to make the right choice, think about ease-of-use, scalability and fees. If you have questions about your accounting software or thinking to upgrade to a new one, please do contact us so we can help.
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