5 reasons why UK companies are moving to real-time cloud accounting services
Is your business ready to switch to online accountancy software? Here, one purveyor gives his take on why you should consider it
From the early days of the abacus, to stuffy old men writing in huge ledgers, to modern day accountants with their reputation for being – shall we say – not the most engaging of people, accounting and accountants have arguably not evolved a great deal over the years.
The information age in which we live has modernised set-in-stone industries with the advent of real-time cloud accounting. To understand why so many UK businesses are migrating it, we need to understand the concept itself; read on to find out more, or watch the video.
Real-time cloud accounting uses a combination of technology, ingenuity and good old-fashioned common-sense to provide all the usual accounting functions, but it also provides so much more: The technology allows your business’ financial matters to be examined on a daily basis. Triggers are set to look out for problems or opportunities. Communication between you and the accountant is constant – not once a year when filings are due.
The software used is also web-based, and constantly improved and updated without you realising it, or needing to do anything. There is no learning curve, no expensive annual upgrade, no risk of data failure – everything operates and is stored in ‘The Cloud’ – you and your business simply benefit from the result of that ingenuity.
Here are the top five reasons why real-time cloud accounting has become so popular in recent years:
1. Threats: Problems can be prevented before they arise
Traditionally, you and your accountant only communicate when necessary. The result is that your accountant only becomes aware of any issues during the annual account preparation. You may then not be able to resolve this in time. Real-time cloud accounting monitors your accounts on a daily basis, often preventing problems before they arise
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2. Opportunity: New ways to grow can be identified sooner
Sometimes, there may be a window of opportunity that requires you to make smart financial decisions in a short period of time. How can your traditional accountant identify these opportunities if they only see your accounts during the annual accounts preparation? Real-time cloud accounting offers 24/7, two-way communication. Both you and your accountant can identify opportunities quickly.
3. Security: Your data will be more secure than before
Data is money, and the loss of data can be devastating. Are you running a spreadsheet? Do you back your data up daily? Ever had a hard-drive failure, or spilled coffee all over your laptop? Data securely stored in the cloud is automatically backed up on multiple devices at multiple locations. There are redundancies built in, and everything is constantly monitored and updated. This negates your data-failure risk completely.
4. Convenience: You don’t have to spend time collecting information
How much time do you spend each year collecting information and documentation to submit to your accountant? Wouldn’t it be nice if all of that information could automatically be submitted daily, without the need for you to do anything? Real-time cloud accounting through scraping technology makes that a reality.
5. Price: It will cost you less
Ask your traditional accountant: How much would you charge me for quarterly reviews of my accounts? How much for monthly reviews? Weekly reviews? Traditional accountants would charge thousands of pounds for their partners or associates to pay any kind of consistent attention to you and your company.
Even quarterly reviews can cost upwards of £1,000 per quarter, let alone weekly or daily checks. Can you afford that? What would it cost if you hired a full-time, in-house accountant? Real-time cloud accounting leverages technology, efficiency and scale to offer just that: it’s like having a full-time accountant on your staff, whose sole purpose is to look after your accounts on a daily basis.
Making it as a start-up is one of the most challenging things you could undertake. Every advantage you can give yourself increases your chances of success. You surround yourself with technology in order to gain that advantage – isn’t it time you partnered with an accountant that matches your vision?
Jason Patrick is media manager at Phoenix Payroll Ltd, which offers real-time cloud accounting with a variety of packages starting from £39 per month. They also offer a 60-day free trial, allowing you to sample the service. Find them at www.phoenixpay.co.uk.