Why having your head in the clouds is good for your business BUSINESS ADVICE: Steven Mackie of M&S Accountancy Steven Mackie, Accounts Manager at M&S Accountancy and Taxation LLP.
and Taxation LLP gives an insight on why cloud accounting is the way of the future.
WE increasingly do our banking, store our files, our photos, books and music and live our lives online or in the ‘Cloud’, a virtual, secure platform where you store and access data. Even HMRC has moved the majority of its services into the cloud, including VAT return submissions and more recently Real-Time Information for payroll. Now, some people might think that accountants have always had their heads in the clouds! Today, almost literally, it’s increasingly true. Cloud accounting is transforming our clients’ businesses, making it easier, faster and more efficient for them to access all their accounts and financial information, 24/7, via desktop, tablet and mobile. Consider the advantages cloud accounting has over more traditional methods of bookkeeping: invoicing is simpler and quicker; you can see who owes you what and when, wherever you may be; online banking feeds mean financial information is available immediately; data is automatically backed-up (no more USB sticks!); you can talk to your accountant on the phone while you look at the figures simultaneously – real-time collaboration – therefore tax planning is made easier and more efficient. How much does it cost? And is it suitable for all types of business? There is no initial outlay and only a (genuinely) inexpensive monthly licence cost. As well as streamlining the bookkeeping process, the tax planning benefits far outweigh the costs. For example: • Sole traders/partnerships – monitor profit levels in real time to help manage tax payments for the year ahead, determine the timing of business expenses and consider pension contributions or other investments. 8
• Limited companies – joint access means accountants can monitor company reserves, advise on dividends, tax efficient remuneration and keep up-to-date with directors’ accounts. • Financing – for equipment, vehicles, mortgages (if you are selfemployed), etc. – the finance provider needs up-to-date figures which cloud accounting provides at a click. • Budgeting and capital expenditure – Up-to-date figures allow control of budgets for the year ahead and this makes it easy for your accountant to advise you about any available tax allowances and how they will impact on your business. What about security? Cloud accounting software is used by hundreds of thousands of customers worldwide, all of whom demand that security is the number one priority. As a professional firm we simply will not compromise on this: our credibility and our clients’ accounting records and livelihoods, are on the line. Moreover, unlike a laptop, the Cloud cannot be lost or stolen. And, your confidential information is kept private by password-protected access, which can also be tailored for different levels of your employees. At M&S Accountancy and Taxation LLP we believe that with the end of the tax year approaching for many, now is an ideal time to investigate cloud accounting for your business. For more information, please visit our website: www.msactax.co.uk and see feedback from our clients on what cloud accounting has done for them. Alternatively, please call: 01383 621118 or email: steven@msactax.co.uk.