How does cloud accounting work?
Cloud accounting puts information in your hands wherever you are. Your numbers are at your fingertips!
Our business has been 100% in the cloud for several years and we wouldn’t have it any other way. It means we can work from anywhere at any time, on any device and via apps.
All we need is an internet connection. The information we report on and analyse is current and there’s no waiting for paper copies or making sure we’re on our office computer.
Simply, it’s accounting software hosted by a service provider that you access over the web – also known as SaaS (Software as a Service).
The software provider takes care of back-ups, software improvements, updates etc. leaving the users to concentrate on their accounting work and not worry about the back-office stuff.
Over the years, we’ve seen eye-catching growth and rapid evolution in cloud accounting software (QuickBooks, Xero, FreeAgent etc) and we’re firm believers that businesses should consider cloud accounting for themselves.
How does cloud accounting help my business?
24-7 access to your numbers for you, your accounting team and your accountant means you never have to wait to know how you’re doing.
Most cloud solutions link to most banks in the UK. At least once a day you can import and account for your receipts and payments and keep up to date with cashflow, the lifeblood of your business.
Bookkeeping can be done by anyone at any time which means your accounts and financial information can be right up to date. You can make better decisions and it gives you more choices for who does your accounting work and from where.
Cloud accounting and flexible working are made for each other!
Another massive benefit is collaboration.
Instead of periodic meetings with your accountant, have more frequent Skype calls and use screen sharing so you can both see the numbers. We constantly use Skype and TeamViewer with clients for training and to review financial information with them.
Save time, save money by getting things done today.
Cloud accounting and apps
As cloud accounting has evolved, so too has the ecosystem of apps that work alongside the software.
There are apps for data entry, financial reporting, cashflow management, credit control, stock management, timesheets and many more.
They really are gamechangers.
GoCardless is a direct debit app that you should look at to improve credit control. Transaction Pro is great for importing large volumes of sales invoice data from a CRM system if that’s where your business raises its sales invoices.
But tread carefully elsewhere – not all apps are useful!
Cloud accounting software is marketed as easy to use. And it is…. If you know what you’re doing.
Training, training, training!
The most common mistake we see users make is they don’t invest in training at the outset. Then things can go wrong without realising it.
I stopped doing my books when I realised I was making them worse! is a blog based on a cry for help from an MD who realised he was getting it wrong and needed help to get it right.
And don’t assume your accountant knows what they’re doing!
We see too many examples of accountants and bookkeepers trumpeting that they’re cloud accountants and that’s enough reason why a business should use them.
Cloud accounting may not a good accountant make gives pause for thought.
Finally, consider the bigger picture.
If you’re using the cloud, then you’re using someone else’s computer. You’re delegating security, data protection, continuity of service to someone else.
But the good news is that the cloud providers know this and go out of their way to set the highest standards in these areas. Their reputation is on the line.
How can we help you make cloud accounting work for your business?
First off, by encouraging businesses to look at solutions that best suit their business.
There are several alternatives and although we have our favourites (and some we wouldn’t touch with a bargepole) we want you to choose the one that’s right for you.
We’ll do bespoke training to get you set up correctly from the start. Recording your transactions in the right way so the financial reporting you get will be right for your business.
Have you considered workflow improvements? This is so important because being in the cloud, linking with your bank and using a data entry app such as AutoEntry fundamentally changes the way accounting work can be done.
There’s no point being capable of up to date financials if your workflows stay as they were in the world you’ve left behind!
Once you’re up and running, we ensure you’re getting the right financial information, know how to interpret and use it to grow your business.
What are you waiting for?
Embrace the cloud – but avoid the hot air!
Why not get in touch?
Let’s discuss how cloud accounting can take the lead in streamlining your accounting systems.
Or, you already use Quickbooks Online or Xero systems but need some tailored training to maximise efficiencies.
Tel: 020 7125 0270
About Blue Dot Consulting