To grow a business, business leaders need to understand where they are now, have the ability to review their business and use that information and reliable data to plot their plans for growth.
Growth can only be measured by having robust data to help you understand how far you have come or may still have to go to reach your goals.
SME business owners, with the latest technology, can access anywhere, anytime data about their business to give an overview and real time insight into business performance.
With real time access to data, this allows business owners to be proactive and adapt any plans to the business plan or strategy.
Hayley Kingsnorth, Accounts & Business Advisory Services Partner, discusses the benefits of cloud accounting technology in viewing data as a business partner and key to driving business performance.
What is cloud accounting?
Cloud accounting, sometimes referred to as online accounting, works in a similar way to desktop accounting software that has been available for over a decade. The main difference between cloud and desktop packages is that, instead of installing the software on your computer, cloud packages run on remote, secure servers which are accessed using the internet.
Data is securely stored on the cloud, giving you instant access to real time information regarding your accounts which can be accessed and worked on from any location in the world with an internet connection, via any device.
Cloud accounting brings new working practices aimed at reducing the time associated with data inputting. Most cloud accounting solutions include features such as bank feeds that automate postings into the software from entries on your electronic bank statements and the ability to upload scanned images of receipts and supplier invoices.
Multiple users can login to cloud accounting software at the same time, from different locations, providing they have a working internet connection.
More informed decision-making
Cloud accounting software gives you time to focus on your business, wherever you may be. You can be confident that you have an up-to-date picture of your financial data – allowing you to make more informed decisions about your business operations.
Enhanced data security
Cloud accounting is more secure than traditional accounting methods as there is no requirement to transfer data between your business and your accountant and business advisor.
Ease of use
Each business is different and there is now a wide choice of online software available. Installation can be made simple with data transfer being automated.
Requires minimal IT support
Your cloud service provider will do much of the required IT maintenance, such as the backing up of your data and installing software updates.
There’s often a barrage of regulation facing SMEs. Demystifying is absolutely key – meaning putting in place processes to simplify procedures and ensure easier management. Cloud accounting software can help ensure compliance with regulation such as Making Tax Digital (MTD) as we move along the timeline.
For more information on how you can use technology to power up your business or to discuss the right software for your business, please get in touch.
Published in the November/December 2023 issue