Why savvy businesses are moving their accounting to the cloud

It would seem counterintuitive that a large accountancy firm would be advising its clients to adopt ‘off the shelf’ cloud-based accounting software solutions such as Xero and Sage, but that is exactly what Dains Accountants is doing.

Steve Rodgers, partner at Dains, has been in the industry for over 36 years and during that time he has seen huge leaps forward in the profession. Most notably, the advent of real time (cloud) accounting software which allows businesses to record and track their revenue and spend.

Here, Rodgers discusses why cloud-based accounting can help SME’s to better understand their cashflow and make informed decisions.

Cloud based software can be transformative for businesses, in order to better understand their cashflow and provide a real time overview of financial accounts, supporting better decision making and improved operational efficiencies.

What is cloud-based accounting software?

Cloud-based accounting software is a system that uses accounting software hosted on a safe remote server. It allows SMEs to store and access accounting systems, reports, and financial documents from the company computers in the office and remotely (as long as there is an internet connection). Staff and the organisation’s accountants can access and manage accounts payable and receivable, the general ledger, and can have access to real time financial data.

In essence, these solutions have changed the way that businesses work with their accountant, as they facilitate a more strategic advisory relationship, because both parties have access to accurate and timely data and so can plan more strategically.

The seven benefits of digital accounting

1. Cloud accounting software provides deep insights into your organisation’s financial situation, regardless of size or budget constraints.
2. Cloud based accounting solutions can be tailored to the specific needs of each business.
3. Cloud-based accounting systems are scalable, adapting to the evolving needs of growing businesses, including new suppliers, employees, and multiple currencies.
4. These systems can save your organisation time and provide instant access to data and documents from any location.
5. They increase efficiencies as there’s no need to re-key data, because it’s automatically saved, shared, and updated across systems ensuring that working and collaborating are easier.
6. They provide better data security, as using a cloud-based system is safer than sending documents back and forth over email or keeping physical copies. Data can be encrypted and stored securely, in line with compliance and GDPR requirements.
7. For UK businesses, making the jump to cloud-based software will ensure that you are compliant with the Government’s ‘Making Tax Digital’ mandate ahead of the changes.

For more information on the accounts and advisory services which Dains can provide, please visit Dains.