The realm of entrepreneurship and small businesses is undergoing a transformative shift thanks to technology, revolutionising the way operations are managed.
One area experiencing a significant technological advancement is accounting, as an increasing number of small businesses are capitalising on the benefits of cloud accounting.
Cloud accounting is not just a passing trend; it represents a move towards efficiency, sustainability, and effective financial management.
Current trends
The decision made by Uber in February 2023 to transition from on-premises data centres to a cloud platform demonstrates the strategic importance of cost reduction.
This shift in data storage reflects the growing trend among organisations to outsource data centre operations to cloud providers in order to cut costs and minimise energy consumption.
Embracing cloud accounting can substantially reduce operational expenses for businesses, particularly in terms of energy costs, which make up a significant portion of data centre operations.
Furthermore, this transition supports sustainable business practices by reducing energy consumption and contributing to the achievement of net-zero objectives.
MTD for VAT
In April 2022, the implementation of Making Tax Digital (MTD) for VAT required all VAT-registered businesses to maintain digital records and file their tax returns using HM Revenue & Customs (HMRC) compatible software.
MTD streamlines the tax reporting process by digitising it, reducing the burden of manual paperwork, and minimising the likelihood of errors.
This automation saves time and improves accuracy, enabling businesses to focus on their core operations.
Additionally, MTD enhances record-keeping capabilities, allowing businesses to maintain organised and easily accessible tax data.
Cloud accounting benefits
Cloud-based solutions enable operations from anywhere and at any time, as long as there is an internet connection.
Accurate and up-to-date information empowers businesses to identify trends, address issues promptly, and plan for the future more effectively.
Cloud-based solutions often have lower upfront costs compared to traditional software, which requires substantial investments in infrastructure, software licenses, and maintenance.
Cloud accounting platforms provide robust security measures, including data encryption, multi-factor authentication, and regular data backups.
Cloud systems seamlessly integrate with other cloud-based business tools, such as payroll software or inventory management, resulting in a more streamlined workflow and reduced data entry errors.
Businesses can easily upgrade their cloud package to accommodate more users, clients, and additional services.
To learn more about cloud accounting for your business, reach out to us today.
