By Phil Ellerby
It doesn’t matter whether you’re a company director, in a partnership or self-employed; if you’re still using paper accounts you’re seriously behind the times.
Like it or not, Making Tax Digital means you’ll soon have to embrace modern technology. So, here’s a few reasons why you should already be accounting in the cloud.
1. Rush everything in at the end of each quarter: Doing your books is far easier because you’ll do them in real time with no backlogs.
2. Record long lists of payments: Sync your bank account with Xero or Quickbooks and the software will do it instead.
3. Manually create and list invoices: Your cloud accounting technology will issue them automatically.
4. Chase up debts: Set automated reminders and your cloud accounting software will do the nagging on your behalf.
5. Carry out manual reconciliations: With the cloud, this time-consuming (and outdated) practice is done automatically.
6. Rely on Excel spreadsheets: Not only is this way of working dated, it also gives off an unprofessional image.
7. Lose out on expenses: Make losing receipts a thing of the past by taking a photo and uploading them on your smartphone.
8. Be in the dark about your finances: With the cloud you always have a clear picture of your current financial position (in real time).
9. Fall foul of the Making Tax Digital rules: From April 2019, every business (and landlord) with turnover above the VAT threshold MUST use online software to update and maintain their records quarterly and going digital will help you comply with this HMRC initiative.
Even if you only use an accountant to submit Year-End Accounts for approval, you could still benefit from embracing cloud accounting technology.
At Northern Accountants, we’re experts in digital switchovers and we promise to guide you through every step of process. To find out how we can help, please get in touch or call 0113 218 9552 today.