7 reasons to consider Cloud accounting software
Despite the well-documented merits of Cloud computing, businesses are more hesitant to move to the Cloud for their accounting software than for any other business operation. We discuss the benefits of cloud accounting.The benefits of Cloud computing are well documented. With low costs of ownership, increased flexibility, availability and security, there is little wonder that companies are increasingly adopting cloud-based systems. Despite this, studies suggest that businesses are more hesitant to move to cloud solutions for accounting than any other business operation. In this guide, we set out to explain the benefits of cloud accounting software and how it can make your business more efficient.
What is Cloud accounting software?
Cloud accounting software allows you to access your data from any device with an internet connection. Software is hosted on remote servers, without having to install and run applications on your desktop computers. Instead, you pay for the software in monthly subscriptions.
The Benefits of Cloud accounting software
- Lower costs: Instead of paying large upfront fees, you spread the cost by paying monthly or annually, helping with cash-flow. Moreover, there is no need to invest in servers, and software upgrades and maintenance are managed by the service provider.
- Up-to-date data: Cloud accounting gives you a clearer picture of your business finances in real time. You can also run numerous reports for up-to-date snapshots of your finances.
- 24/7 Accessibility: You can log into your business account and access your data anywhere with an internet connection. This is particularly helpful for flexible and mobile working.
- Security and reliability 24/7: Data is hosted in secure data centres in an encrypted format and password protected. Backups are taken automatically and importantly, if your computer crashes, everything is still saved in the cloud. Despite some common misconceptions, moving to the Cloud may actually be safer for your business.
- Flexibility to grow: Cloud software is scalable so new users and applications can be added quickly and easily to support business growth.
- Business continuity and disaster recovery: Backup servers are usually located in two or more locations, so if one server network goes down, you still have access to your data. This offers recovery and fail-over capabilities that most companies cannot match independently.
- Fast implementation: You'll be up and running quickly with support from your IT provider.
Meeting HMRC Requirements: Making Tax Digital
The government has already outlined its plan to digitalise the tax system through Making Tax Digital. Whilst small businesses below the VAT threshold may be exempt, it is likely that the HMRC’s final objective will be for all businesses to be included in the scheme. Most cloud accounting software meets HMRC’s requirements. Consequently, by investing in this software now, you can future proof your business. This eliminates any concerns over HMRC compatibility in the future.
Which cloud solution is best for you?
Not every Cloud solution is the same. Above all, we recommend taking the time to review the features most important to your business. A cloud solution that meets these needs will make managing your finances easier. Ask yourself the following questions when reviewing solutions:
- What is your accounting budget?
- How many invoices do you create monthly?
- Does the software need to scale with your business?
- How many users need to access the system?
- What reports do you need, and how much customization is required?
- Do you need payroll services? How many employees do you have?
- Do you want inventory solutions within your accounting solution?
- What other software do you use that you will need to integrate with?
- How will the provider back up your data? Can access be restored immediately during an outage?
- How will your current accounting information and customer data be migrated into the new solution?
- What levels of tech support and customer service will you require?
Once you know which features are most important to you, shop around and give the most promising contender a free trial run. Here at PCR Connected, we recommend Microsoft Dynamics 365 Business Central as a Cloud solution designed specifically for SMEs. It is an all-in-one business management solution that provides financial, supply chain, sales, service and project management. For more information on Cloud accounting software or for a trial of Dynamics 365 Business Central, simply get in touch.
