Top 5 Cloud Accounting Questions

Cloud-based accountancy packages are better than ever, with good value options and up-to-date, easy to use software. All you need to make business accounting easier than ever, is advice on where to start and someone to recommend the best for you and your business. So here goes…

Top 5 Cloud Accounting QuestionsCloud accounting and digital accountancy packages can seem like a futuristic administrative nightmare – daunting, complex and expensive. In fact, the reality is the exact opposite. There are several systems on the market for small businesses and all offer easy and cost-effective solutions for accounting.

FD Business is a certified partner using the top accounting systems, including Xero, Quickbooks and SageOne. We can offer you advice and support so you get the best from a cloud-based system. Understandably, clients come to us with lots of questions around price and risk.

Here are the top 5 questions we get asked:

How much does cloud accounting cost?

Like most online systems, there are multiple options available in accounting packages. At FD Business, we’ll work with you to make sure the system you choose is right for your business. Ongoing monthly charges start from £10 for the software, depending on the features required and support time. Plus, you can do as much or as little of the work yourself, depending on how confident you feel.

How complicated are online accountancy systems?

Again, online systems vary, although all are fairly straightforward. What they do offer is a fully mobile system, where you can raise invoices, email invoices and clients and even make payments on the go – reducing your debtor days significantly.

The systems themselves are intuitive enough that you’ll be able to work with them after just a couple of hours. Of course, some are easier than others and you might want to do advanced level accounting. If you do, we can help you decide which is the right system for you – and we can train you on it, too.

Is my financial data safe and secure?

Small business owners are often wary about online or cloud accounting, which is only natural when you’ve built your business yourself! Cloud systems are regularly updated by the manufacturers directly, which means you’re always using the latest version. This saves you time (and money) on software updates and installation.

For your own peace of mind, today’s online systems are secure and reliable, so only those with specific permission can access your accounts. With all systems, you can set access levels, for staff, or accountants, so they can input data and reporting, without being able to see the complete financial position of your business.

As it is hosted in the cloud and backed up regularly, there is no risk of losing your data, if your computer breaks. As you can access the system from any internet device you just long in from another computer.

Can Xero help with year-end accounts?

As well as monthly accounting, invoicing and tax, cloud software can also help with year-end accounts. As your accounting system is linked to your bank account, it updates in real time. This is incredibly helpful for the year-end reports, as all the information you need is already held in one place. Most systems will also provide draft statements, which you can review and approve before submitting. It’s a very time-efficient way of working, which means you should also see a reduction in the charges from your accountant.

Will I still need an accountant if I manage my books through Xero?

Managing your books online gives you guaranteed peace of mind when it comes to your reporting. What it can’t do is give you advice on the latest tax allowances, or help you make the most of your investments. It’s advisable to get trusted support and advice from an experienced accountant, who will help you minimise your tax liability, and ensure your returns are submitted on time to avoid penalties.

Cloud based accountancy systems are a great, low-cost investment, for the small business owner. If you’d like to make your finances easier to manage, or if you’d just like some advice on what’s right for your business, contact me for a no-obligation chat.

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