Cloud Accountancy in Simple Terms

In Stage One of this article we explain Cloud Accountancy (in simple terms) and look at some top level benefits.

Later this week in Stage 2, we will be looking at “Add-Ons” – what are they? What do they do and how you can use them to your advantage.

Cloud Accountancy

What is a Cloud Accountancy System?

Cloud Accountancy systems are Accounting software packages which allow you to access a whole suite of tools to manage your Company finances – from invoices and expenses to payroll and revenue.

You can generate reports whenever you want them at the simple click of a button. You can give permission to other people in your business to access data when they need to – great for managing budgets.

A big benefit is that it helps you to understand your costs and get better management information and tightens up your financial controls. It enables you to see your revenue at any point in time – you don’t need to wait for your Accountant or Finance Manager to update files at the end of the month. You can generate reports, analyse data, raise sales invoices and chase your outstanding invoices at the push of a button. Essentially it puts you in control of your business and reduces the time and money you spend on paperwork and processing.

You can use cloud Accountancy software on a whole range of devices where there is an internet connection, meaning that you can stay connected to your data and your Accountant where ever you are in the world. Great for keeping in touch with your business whilst travelling or sunning yourself on an exotic beach!

security

Is my Data Secure?

In short – yes. All your Company information is held on a remote server. Data is sent to “the cloud” where it is stored and can be accessed at any time.  The system runs daily online backups and it encrypts and stores it in several places so that it is safe and secure.  Access is tightly controlled so you can control who sees what – no one has access to your data unless you invite them into your account. Most systems also have two-step authorisation security at login to add extra protection to your account. This is the same system that many internet banking and online services use. The added bonus of all this security and numerous backups is that if your laptop/ computer goes bang, gets lots or stolen then you won’t lose any data because it’s all stored in the Cloud.

Plus you don’t need to install any software or maintain any software as it’s all done automatically for you – saving you even more time and hassle.

Some Benefits of Cloud Accountancy: 

  • You can access your Company information from any device where an internet connection is available
  • Gives you real time financial information enabling you to make informed and faster business decisions
  • File your VAT return through Xero & comply with HMRC Making Tax Digital (requirement from 2019)
  • Enables you to keep on top of your cash flow
  • You will get paid faster with auto invoice systems
  • Removes paper receipts and excel spreadsheets
  • It’s incredibly simple to use & saves you a lot of time
  • You can have unlimited users at no extra cost
  • Data is automatically backed up
  • No disks to install
  • Software is constantly improving

Later this week, in Stage 2, we will be looking at “Add-Ons” – what are they? What do they do and how you can use them to your advantage.

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