In recent years there has been a growing trend towards the adoption of cloud accounting software as more and more businesses look to improve efficiencies and utilise technology more effectively. There is no one-size fits all package with regards to accounting software, each offer their own unique set of benefits that suit some businesses more than others. With so many options to choose from it can be quite frankly overwhelming but it is worth persevering with because once implemented, your business will reap the rewards.
In this article we hope to explain the rationale behind adopting cloud accounting software and give you some useful pointers to consider that will help you to decide what software to implement.
Whatever the situation, accounting software helps you to compile your business information in a clear, manageable way.
Why should businesses implement cloud accounting software?
Businesses are relying upon technology more frequently with a variety of software packages in use across an organisation. The various packages are appropriate to the individual departments and facilitate their day to day activities – finance departments are no different.
The use of cloud accounting software is becoming more prevalent among small businesses and there are numerous factors that contribute towards this.
Ease of access, heightened security, cost efficiency and compliance with MTD are among the benefits.
There is an abundance of cloud accounting software packages to choose from and that is why we have compiled a list of items to consider when deciding which to implement.
What to consider when choosing what cloud accounting software to implement?
The low-cost option may be preferable from a budgeting perspective however as with most things, you usually get what you pay for. With this in mind the most inexpensive option might omit some features you may find useful such as payroll, for example. Cloud accounting software is largely affordable to most businesses and providers usually offer varied pricing strategies to suit all manner of businesses.
Many providers have moved away from issuing software licenses and instead offer monthly subscriptions. The cost is determined by the number of users that require access and the features you want.
The basic functions almost all cloud accounting software will offer include; invoicing capabilities, income and expense tracking, financial report generation and customer management tools. For some businesses the basic functions will suffice but it won’t suit every organisation, and this is where you need to decide what it is exactly you want to get from the software.
For instance, if you sell more than one product you may want the ability to track your inventory, manage vendors and assist with purchase orders. Similarly, if you are a service-based business you may opt for software that can manage invoice payment details.
It is important to do your homework, speak to other businesses, seek advice from your accountant and most importantly check that the software will do exactly what you need it to. This is particularly relevant to VAT registered businesses with a taxable turnover above the threshold for Making Tax Digital (MTD). Selected software is MTD compatible but not all of it is, therefore, this is something to watch out for to save duplicating this exercise again in the future.
Opting for a software package that integrates with your existing suite of business software such as your CRM is something else worth considering.
Look into the third-party integrations that are available with the software too because these can further enhance efficiencies and processes both internally and externally.
Phebys advocate cloud accounting software.
We recruit the best talent and exploit the latest technology in order to provide the best service to our clients.
With a variety of packages to suit every step of the journey, every size of business and every individual’s needs, let us help you make more money, pay less tax and enjoy life. Using the latest cloud technology and systems, we don’t only save you money, but time too.
For advice and support on cloud accounting software, contact Phebys Accountants on 01480 896267, or email firstname.lastname@example.org.