Cloud accounting (also known as online accounting) can be daunting for businesses, especially in established financial departments where making changes to existing processes can feel like a burden. However, cloud accounting is a powerful tool that can help small and large businesses save time and money long-term, as well as improve their overall financial management, forecasting, and client onboarding.
Simply put, cloud accounting is a way to manage your business’ finances from anywhere with an internet connection – making it a highly-suitable solution for desk/office workers, remote employees, and even making it easy to manage expenses on the go.
While most of us have probably been using online accounting for our personal finances for years, transitioning a business to an online accounting system that’s based in the cloud might seem complex due to the range of tools available on the market. This is why our team of chartered accountants are specially trained in cloud accounting tools, making them experts in getting the most out of each platform and helping you make the right choice for your business needs. At MMG Chartered Accountants, our team has years of specialised knowledge working with top cloud accounting solutions, including: QuickBooks, Xero, FreeAgent, and KashFlow; as well as the employee platform, ePayslips.
Beyond the management of a business’ finances, cloud accounting can be used to:
- improve your business’ sustainability and reduce your carbon footprint,
- make accounting more accessible,
- and provide better integration with your existing company systems and software.
Alongside this, most cloud accounting platforms will allow you to generate detailed or at-a-glance reports, business forecasts, and expenditure analytics – helping your business grow and making better use of your resources by removing the need for manual data entry or multiple analytical tools. Together with the advice of your dedicated MMG chartered accountant, you can harness the power of technology to make informed strategic decisions, meet your financial goals, and plan for the future by unlocking new opportunities for growth. This collaborative approach will enable you to stay flexible in the rapidly evolving business landscape.
Additional benefits of using cloud accounting solutions include:
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Improved cash flow
Cloud accounting solutions can help you track invoices and expenses effectively and efficiently to help avoid cash flow problems. For instance, an SME in Perth can automate invoice generation and payment reminders through a cloud accounting solution such as Xero. This automation reduces manual effort, minimises human error, and ensures timely invoices and payments – improving cash flow management and saving valuable time for both the business and its accountancy service provider.
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Reduced paperwork
Cloud accounting solutions can help you reduce the amount of paperwork you need to manage, organise, and store – reducing your costs and allowing you to downsize physical storage requirements. For example, a hospitality business in Crieff can integrate its cloud accounting solution with its point-of-sale system and inventory management software – helping keep everything together and providing valuable insights into profitability, cost of goods sold, and stock management.
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Collaboration
Cloud accounting makes it easy to collaborate with your MMG chartered accountant, bookkeeper, or other team members by allowing simultaneous, remote access to data and saving you time and travel costs. For example, a business owner in Montrose can share financial data with their employee in Forfar and collaborate in real-time, discussing financial strategies and making informed decisions based on accurate and up-to-date information.
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Improved security
Cloud accounting solutions are highly secure and most offer 2-factor authentication alongside additional encryption and firewalls, so you can be confident that your financial data is safe. Service providers will use the latest security measures to protect your data from unauthorised access and will manage the security aspects of the system on your behalf as guidelines change. This also ensures that client information, financial records, and other sensitive data are kept secure and in compliance with industry regulations.
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Ease of use
Although there may be an initial learning curve in familiarising yourself with cloud accounting solutions, they are typically easier to use than traditional methods and reduce the chance of errors as the platform will handle all the complex calculations, account types, and more (making cloud accounting suitable even for people who don’t have a lot of accounting experience!).
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Improved regulatory compliance
Alongside handling the reporting aspect of your business, cloud accounting solutions will help your business stay compliant with changes in regulations and keep you informed of upcoming changes.
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Real-time data
Gone are the days of manual data entry – cloud accounting solutions provide real-time access to money going in or out, so you can always see what’s happening with your business. This can help you make better financial decisions and spot potential problems early on.
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Cost-effectiveness
With many cloud accounting platforms, you’ll only pay for the services you use, so you can save money on upfront costs and only scale when you need to. For example, a small e-commerce business in Dundee can start with basic accounting features on a cloud platform and easily upgrade to more advanced functionalities as their sales and operations expand. (At MMG Chartered Accountants we also offer a range of scalable packages across all areas of business finance and auditing to complement your cloud accounting package.)
Cloud accounting solutions offer substantial benefits to businesses of all sizes and in any region. Take advantage of the benefits that cloud accounting offers and elevate your business to new heights of success with MMG Chartered Accountants by contacting our team at mail@mmgca.co.uk or calling your local branch.