Cloud accounting has been around for a while now. Many businesses and people have already switched or started the process.
As with everything, the digital switchover is the inevitable future for industries, and accounting is one of the sectors which will be heavily affected.
But cloud accounting isn’t anything to shy away from. In fact, it’ll make your working processes much more manageable. Here’s what to expect from the future of cloud accounting.
There’s nothing more frustrating than having to sort through endless amounts of paperwork when preparing your annual accounts and statements.
With cloud accounting, you are saving yourself a lot of office space which would usually be eaten up by filing drawers and folders. Having all your financial information at your fingertips is much more convenient, especially if you can access it on the move.
You can also share access to your cloud accounting with your accountant, meaning you’ll both be on top of your numbers in real-time.
The software will also update itself, so any changes to your taxes will be reflected in the program.
Making Tax Digital
The future of paying your taxes has started rolling out. Making Tax Digital (MTD) already requires VAT-registered businesses to file their VAT returns and make payments online through MTD-compatible software.
Starting in 2019, MTD for VAT requires businesses with a turnover of £85,000 or more who pays VAT to register online and keep all of their documents in a digital space, streamlining the VAT process.
As of 2024, MTD will be the new norm for paying and filing your income tax returns, with a pilot scheme already in place. Self-employed workers will have to file their self-assessments online quarterly, as well as expenses and invoices.
Finally, by 2026 at the earliest, companies will have to register and pay corporation tax digitally.
Researching and downloading MTD-compatible software as soon as possible is the best way to prepare yourself. If you need advice on which program will suit you best, contact the experts at Blue Shore.
Scaling with your business
Programs like Xero and QuickBooks work with smaller to medium businesses, but they can also be used throughout a business’s growth and scale with you.
As cloud accounting continues to grow and develop, the toolkit will become more prominent and fit your business needs.
Cloud accounting can be customisable depending on what you need from it. There are several add-ons which are specific to your business. This could be payroll services, invoicing or customer engagement, whatever you need it for.
Moving all of your data into cloud-accounting software minimises the risk of your financial information falling into the wrong hands.
Any reliable accounting software will have strong security measures to protect your privacy and confidentiality. You’ll not have to worry about shredding essential documents and locking things behind cabinet doors.
Cloud accounting also has the added benefit of backing up all of your data online, so it won’t matter if your computer crashes or your office burns down; everything will be stored in the cloud.
Updating your processes
Cloud accounting will continue to develop over the coming years and will become the primary way you handle your taxes.
The team at Blue Shore can advise you on how to integrate cloud accounting into your work processes.