What is Cloud Accounting?
Cloud computing really means internet-based computing. Software is provided through computers and related devices (smartphones, tablets, etc), via the internet. With cloud computing your computer’s hard drive is no longer where most things take place (just like your Facebook or Gmail account).
You don’t need to buy a physical copy of the software from a shop or download it to yoru computer. You simply access the software online. Think of ‘the cloud’ as basically another way of talking about all the ways we use the internet.
‘Cloud Accounting’ means the use of accounting software that is stored in the cloud instead of on your computer. Data is stored on a remote server that is not on your company’s site. This means you don’t need to purchase, maintain or upgrade any hardware yourself.
Why Cloud Accounting?
The world is changing. With the move towards digital and the impending introduction of HMRC’s “Making Tax Digital” there is a fundamental shift in the way in which we do business.
Online accounting platforms allow businesses to create invoices, pay bills and keep up to date with their finances on the move. Similarly, Making Tax Digital (MTD) is HMRC’s drive to make the UK the most digitally advanced tax system in the world – and will ultimately require businesses to submit quarterly tax returns via digital platforms. At the moment, MTD plans are progressing slowly, but they are moving and we advise businesses to be prepared for it.
Adopting cloud accounting is not just about the ability to comply with MTD. That is an additional benefit. There are many other good reasons to consider cloud accounting.