9th January 2018 Posted by - Alexander Accountancy
Cloud-based accounting software is now widely available to all types of business, thanks mainly to the availability of the internet almost everywhere you go. Vast improvements have been made to the software that has simplified usability. The choices available can become overwhelming and selecting the correct software package to suit your business needs is vitally important.
Each software provider has created a unique look and feel to their accounting package, but most are based on common user friendly features. However, the principles and complexities of double-entry accounting cannot be ignored and the terms familiar to accountants are still used and must be understood. The developers have hidden a lot of this functionality in the background so that the end user does not experience the mystifying process of Debits and Credits, the Trial Balance or the Chart of Accounts.
Integration with other software is also improving. Bank feeds can be created that import bank transactions. Quotes and Sales Invoices can be created and emailed to customers and Purchase Invoices scanned directly into the cloud. Utilising the software correctly can provide useful real-time data on Cash-flow, Trade Debtors and Trade Creditors along with Profit and Loss reports. This information can also be accessed via tablets and smart phones to keep you up to date on the move.
The pricing model has moved away from a one-off purchase price plus an annual licence fee which was common for desktop software, to a monthly subscription for the basic package plus add-on features that can be selected to fit the business needs. This can help cash-flow by spreading the cost.
However, there are pitfalls to be aware of. Many software packages become corrupt with incorrect data. Bank feeds often double up transactions, which provides an over or under stated bank balance. Duplicate invoices have an impact on Profit and Loss. VAT is not always calculated correctly and companies in the construction industry must factor in CIS tax.
Remember the information you get out is only as good as the information that you put in.
Alexander Accountancy has vast experience of many of the cloud-based accounting packages and can advise on the suitability to your business. We also offer bespoke training sessions that provides the skills necessary to utilise the software to help your business grow. Why not contact our business advisers for a free consultation to see how we can help you make the right choice, please email us for a meeting at firstname.lastname@example.org or telephone us on Burton on Trent 01283 743851.