Bookkeeping for UK Businesses: A Guide to Using the Cloud
Discover the benefits and key considerations of transitioning your UK business to cloud-based bookkeeping. Unlock efficiency, real-time access, and growth potential with this comprehensive guide. Make informed decisions to optimize your financial management in the digital age.
HOW DO THE UK’S BUSINESS INDUSTRY FACTORS CLOUD-based bookkeeping INTO THEIR ACCOUNTING PRACTICES?
Have you ever wondered why the UK business industry has such a high adoption rate for cloud-based bookkeeping computing over the rest of Europe? There are a lot of reasons for the UK’s cloud-first mentality, but one factor in particular is government incentive programs that incentivize businesses to adopt cloud-based bookkeeping answers.
A blog about how the cloud helps businesses deal with accounting and bookkeeping.
THE CLOUD HAS CHANGED ACCOUNTING PRACTICES
According to Flexi, the Cloud accounting market is expanding and is projected to reach $4.25 million by 2023. When it comes to accounting, this means that a number of Cloud Accounting Software applications have appeared on the market.
Cloud computing is now a significant part of accounting practices in the UK. From payroll processes to client communication, the advent of this technology has revolutionized businesses in many ways. Cloud-based accounting software increases automation in day-to-day business processes, such as accounts payable, expense tracking, and payroll.
Not only has it made things easier for business owners and their employees, but it has also changed the way that accounting is done. This is because it has made accounting processes easier and more efficient than ever before:
- According to Sage UK, 67% of accountants love Cloud accounting and think that Cloud technology makes their businesses more successful.
- The majority of accounting firms that used a cloud-based management system in their bookkeeping operations felt they handled the COVID-19 disruption well.
- Businesses can shorten close process cycles by 33% by switching from spreadsheets to cloud-based financial management, accounting details show.
- 53% of them have already taken up Cloud-based practice management software for project management and dealing with clients.
- Two-thirds of accountants say Cloud technology is improving client interactions and service offerings.
- Half of accountants say that practice revenue has increased in the last 12 months.
As a result, businesses can save money on their operations and focus more on their core competencies. It allows companies to share resources, work together, and collaborate more easily. In a world where remote jobs are becoming the norm, more and more companies recognize the benefits of the cloud in a hybrid organization.
CLOUD ACCOUNTING VS. TRADITIONAL ACCOUNTING
Cloud accounting services are also gaining popularity among small businesses because they offer many benefits over traditional accounting systems.
One such benefit is flexibility; Cloud-based applications allow users to set up multiple accounts within minutes. Also, they can access them from any location via an internet connection. Also, businesses that make use of cloud computing are able to significantly reduce their operating costs. This happens because they do not have to install expensive software or get rid of outdated hardware. Companies do this in order to accommodate the demands of the business during peak times.
EXPAND YOUR SCOPE OF ACTION
It’s much easier to scale your business when you’re in the Cloud.
THE EVER-INCREASING ROLE OF DATA
The UK’s accountancy industry is the first to recognize the need for cloud-based accounting software and services. Mostly because the UK’s major accountancy firms receive consistently reliable income from their audit segments.
The UK’s regulatory environment for businesses and companies has gone through a number of changes over the last decade, with a central focus on “businesses in action.” This has led to a more compliance-based strategy, as well as the continued use of computer systems. With this in mind and data security at the forefront of IT decision-making, cloud computing is becoming an increasingly viable option for small to medium-sized enterprises (SMEs).
Upsides of cloud computing
One of the (many) benefits of cloud accounting is its ability to make new accounting technologies such as Big Data, Power BI, and AI accessible and simple. These technologies can help businesses analyze their revenue streams and identify areas where they can improve efficiency and profit margins. This means that businesses can make strategic decisions about how to grow their company based on real data rather than guesswork or intuition. Simply put, by harnessing data, modern accountants can move from descriptive analytics to prescriptive analytics.
To quote Forbes, ‘Centralizing data management, especially through the use of cloud technology, cuts waste and lowers costs greatly by improving communication and collaboration.’
The use of data makes it rational to create reliable audit trails, which can help companies ensure that they are in accordance with all regulations. Also, cloud computing means that businesses never have to worry about maintaining their separate servers or networks. This cloud technology means they save time and money while improving their efficiency.
MEETING CLIENTS’ NEEDS: HOW THE CLOUD IS REDEFINING THE ROLE OF THE ACCOUNTANT
The automation of repetitive and low-value-added tasks has forced accountants to rethink the scope of their work. The traditional role of an accountant has always been complex, but it’s becoming even more so as businesses need accountants who can advise them on how best to utilize technology in order to increase efficiency and productivity.
Now that routine tasks are handled digitally, their clients now expect them to provide business advice. Sage research finds that 82% of accountants say that clients now demand services such as advising on relevant finance and accounting technology, and 45% said they see their jobs becoming more strategic in the next two years.
This means that accountants need to become experts in a variety of areas — from finance to marketing — if they want their clients to succeed in today’s competitive marketplaces. As a result, 82% of accounting firms say they are open to recruiting from a non-accounting background for positions within project management and client services.
THE FUTURE OF ACCOUNTING
The cloud offers huge benefits to UK SMEs, and a growing number of companies are now turning their attention to the technology that can save them a small fortune and gain a competitive edge in the UK business industry. And because accounting is based upon the review of financial records, this will likely lead to more reliable financial practices for any company that is utilizing cloud computing practices.
As more companies turn to cloud computing, the accounting practices used by companies in the United Kingdom are changing. Cloud computing presents several business opportunities for accountants. However, it also comes with the cost of having to learn a new system and having to adjust their existing accounting practices. The good news is many cloud accounting solutions provide their clients with an onboarding process and customer service management.
As for adjusting their existing tools and practices, again, cloud-based solutions are designed to integrate with existing tools, not the other way around. This compatibility between tools makes it possible to create transversal and secure approval circuits.
Accountants Fear Cloud Costs.
Last but not least, many accountants are hesitant. The reason is that they are afraid that cloud computing will require them to spend more money. While it is true that cloud computing can be expensive, it doesn’t necessarily have to be. In addition, one should not forget the many hidden costs that burden the budget of accounting firms, starting with scope creep and accounts payable operations.
With cloud accounting, you pay a single monthly fee for access to an online accounting software package. This allows you to record, control, and manage your business’s finances. Rather than your data being stored directly onto the hard drive of your computer, all of your information is stored in the cloud, allowing you easy access to it anywhere, any time.
More and more businesses are moving to cloud accounting and seeing the benefits associated with it. But if you’re still not sure, then have a look at some of our main reasons why you and your business could profit from a move to cloud accounting.
One of the major disadvantages of a traditional desktop-based accountancy software package is that to share information with your accountant, Also, other members of your team. The files would need to be downloaded and either printed off or emailed. These files may be correct at the time of download but will soon become out of date. This can lead to numerous discrepancies and errors. However, with cloud accounting, you can give access to whomever you choose (and usually choose exactly what level of access they have). Also, they will then be able to work with the most up-to-date information.
Easy To Access Anywhere
Because you are not reliant on a piece of static software to handle your accounts. All you require is an internet-enabled device; you can access your accountants anywhere and at any time. Many cloud accountancy packages have mobile platforms built into their software. This is so you can even do your books on the train to work in the morning. Cloud accounting can also be perfect for anyone with a disparate or traveling workforce. The reason is they can submit expenses and update records wherever they are.
Most cloud accountancy providers offer incredibly high levels of sophisticated data security. This security is usually either compliant with or exceeds the Payment Card Industry.