Whatever size your business is, you will need to keep accounting records and regularly produce accounts. It is of course necessary in order to keep HMRC happy that you are complying with the law. For limited companies, the accounts also need to be filed with Companies House. However, the most important reason to keep your accounting records up to date is so that you know how profitable your business is at any time. So why not use online accounting to do this?
Accuracey of Your Records
Accountancy firms can take anything and produce a set of accounts. However, if the records you supply are badly kept, the accounts will not be completely accurate. This means that any analysis of them will be of limited use.
One development which helps businesses keep up to date with their bookkeeping is online accounting systems and their integration with existing accountancy software. Most small or medium sized businesses have someone who has the specific task of dealing with the accountancy functions. These include recording of all invoices received and issued as well as the settlement of these whether paid in cash or via the bank. It is not economical to have a fully qualified accountant in this position. That person will ensure that all information has been received and resolve any queries with the accountant.
Traditional accountancy calls for many visits to your accountant, time consuming mail deliveries and the risk of items being lost in the mail and storage of paperwork. The whole process has now been simplified thanks to technology. Anyone who has access to the Internet can use the services of an online accountants. HMRC expect to see that a business is keeping adequate records, as well as being up to date with filing deadlines and payments. An online system is easy to keep organised, with invoices retained, payments recorded and all information ready to be examined.
It simplifies matters considerably when the records can be supplied by email to an online accountant who is then able to produce reports as often as required by the businesses proprietor.
No More Paper Work
Online accountancy allows a business to file all important documents online, reducing the requirement for lengthy postal deliveries and storage space. As your accounts and documents are online you may access them at any time. Client and accountant can make changes in real time, so no need to send changes to accounts back and forth.
Access Records Anytime Anywhere
Keeping accounts online also allows you to access your accounts wherever you are, without having to return to the office. As long as you have access to the Internet you can deal with any queries or problems immediately. Therefore, online accountancy reduces the need for face to face visits, leaving you free to manage your business.
Businesses have many legal requirements to adhere to, especially with HMRC and there constant changes to legislation. Therefore, an online accountant providing an online accounting system to outsource to, would be cost effective.
Understanding Accounting Terms: Online Accounting for Beginners
What line of work you’re in, being able to complete your accounting easily and online is a real time-saving bonus. Understanding how an online digital accountant help.
What is online accounting?
‘Saving to the cloud’ is a computing term which describes saving documents and records to an online storage location. Therefore, all you is a device with internet connection, no need for printing or saving documents to your computer.
So, online accounting simply means keeping digital copies of your bookkeeping records and supporting documents, and saving the information to an online server. Specialist online accounting software helps users keep their bookkeeping up to date and keep track of their business’ finances easily.
How does online accounting work?
Online accounting is just like traditional accounting, only the information is all stored on the cloud. A real world example of this in action is us, and the cloud accounting software we use, Xero, FreeAgent, QuickBooks and Receipt Bank! Check out our Accounting Software!
Our clients use Xero to record bookkeeping data, and our accountants have access to the data too. It means it can be used by any type of business, be it a limited company, a sole trader, or a freelancer.
What are the benefits of online accounting?
- Online accounting makes it easier to collaborate on business finances with your accountant, or other people involved in the business.
- It’s a more sustainable option, reducing paper usage.
- Users can access financial records and produce reports based on real time events, which is much better for decision making.
- You can connect to other data points (e.g., bank account), to automate a lot of data entry. It’s more time (and therefore cost!) effective.
For more information about how cloud accounting could help your business, call 0330 113 8442 or check out packages.