What is Cloud Accounting?

Imagine being able to manage all of your companies financial information and records, view receipts, track expenses and manage payroll from any location on any device – cloud accounting makes this possible.

With the digital age we have seen many paper-based processes move to a digital format, and accounting is no different. In April 2019, HMRC started to gradually phase in Making Tax Digital, affecting VAT-registered businesses with a taxable turnover above the VAT threshold of £85,000.

Traditionally accounting is managed on a local computer via Excel or other software such as Sage 50. With cloud accounting, these practices can be managed online in ‘the cloud’.

PC Mag’s definition of the cloud is as follows:

In the simplest terms, cloud computing means storing and accessing data and programs over the Internet instead of your computer’s hard drive. The cloud is just a metaphor for the Internet. It goes back to the days of flowcharts and presentations that would represent the gigantic server-farm infrastructure of the Internet as nothing but a puffy, white cumulus cloud, accepting connections and doling out information as it floats.

 

 

 

What are the benefits of Cloud Accounting?

 

Given the many benefits of moving to a cloud based accounting system, we wanted to highlight our top 5 in no particular order.

Cost and time-effective solutions. Save time with account reconciliations by connecting your bank feed to your chosen software. Upload receipts securely from your smartphone.

Suits businesses of all sizes, whether you’re a micro business or large enterprise. Take advantage of templates for invoicing and tax calculations, switch on payment reminders and confirmations and check your account balance on the move so that you have real-time information on your cash-flow position.

Real time information – access your financial data anytime and anywhere. Having to access financial data and information quickly (i.e., in real time) will empower businesses to make informed decisions sooner rather than later. All of your information is saved securely on remote servers, so all you need is an internet connection. 

Share and collaborate with ease. Collaboration is at the heart of everything we do, and cloud accounting makes this process streamlined. It allows us both to work in one place, with tracked actions so that you have full visibility.

Reduces paperwork and is more sustainable. Tired of hunting down and filing all of your invoices and receipts at the end of each year? Reduce your admin burden and speak to us about cloud accounting today.

 

 

Lawson are here to help.

We are cloud accounting experts, who maintain a partnership status with Sage and Xero.

If you are looking for an accountant in Newcastle with partner status to optimise your existing accounting systems, get started with Lawson today.