Cloud accounting is one of the most powerful tools that businesses can use to increase efficiency, reduce costs and simplify their accounting processes.
With cloud accounting, businesses can access their financial information from anywhere in the world on almost any device with an internet connection.
What are the benefits of cloud accounting?
Using cloud accounting can help businesses save time and money by eliminating redundant paperwork and manual bookkeeping.
By automating routine tasks that are traditionally done manually, such as invoicing customers and processing payrolls, businesses can free up valuable resources that can be used to develop their business in other areas.
Additionally, many cloud-based accounting software solutions have built-in analytics capabilities that allow businesses to monitor their finances in real-time and make informed decisions based on past and current performance.
Cloud-based systems also offer a high level of security. Since all of your data is stored securely offsite, there’s no risk of losing important files due to physical damage or theft.
What’s more, with the growing number of third-party apps on the market for a range of the most popular online accounting platforms, you are able to automate and achieve even more.
Compliance with Making Tax Digital (MTD)
If you are a business owner with a VAT registered business, you are required to keep digital records and file your tax returns using compatible software each quarter.
Many of the cloud accounting platforms available are HMRC-compliant and will help you to record and provide this information, while also offering the many other benefits outlined in this blog.
If you do not comply with MTD, you will be subject to penalties.
Recent changes to MTD for Income Tax Self-Assessment (ITSA) will affect businesses as this has been delayed by two years.
However, our experience with the introduction of MTD for VAT suggests early preparation and integration of cloud accounting is key to compliance.
If you need advice on related matters, contact us today.
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