Benefits of using a Cloud accountant
The accountancy profession has undergone a dramatic transformation in recent years, largely driven by improvements in technology. However the impact of Covid-19 and Making Tax Digital has also reinforced these changes. Cloud computing has revolutionised how businesses manage their financial records and collaborate with their accountants. Whether you are an established or a new business startup, you may want to consider the benefits of using a Cloud accountant as opposed to a traditional accountancy firm.
Accessibility and flexibility
One of the most significant benefits of using a Cloud-based accountant is the accessibility they offer. When you use a Cloud accountancy firm, all financial data and reports are stored securely on remote servers, accessible from anywhere in the world that has an internet connection. This means you can work seamlessly with your accountant, irrespective of where you are geographically located.
Traditional accountancy firms on the other hand, frequently require your physical presence or the exchange of physical documents, limiting the flexibility of your collaboration. You also may have the inconvenience of attending an office for a face to face meeting, where parking may be difficult etc.
Real Time Collaboration
When you use a Cloud-based accountancy firm you can collaborate in real time on financial data. This means that updates, changes, and queries can be addressed promptly without the need to schedule in-person meetings or send documents back and forth. This may be important if a matter is particularly time sensitive - for example a mortgage application.
Efficiency and Automation
Cloud-based accounting often involves the use of software (e.g. Xero) and tools (e.g. Dext) that streamline financial processes. Many Cloud accounting platforms integrate with bank accounts and financial software, allowing for easier data entry, automated categorization, and reduced manual work. One of the benefits of using a Cloud based accountant is that they are likely to be more IT literate than a traditional accountancy firm and able to provide effective support with these online tools.
Security of Data
A reputable Cloud-based accountancy firm prioritises data security. They often use encryption and other security measures to protect sensitive financial information. These can be on par with or even superior to those security measures which are taken by traditional accountants.
Adaptability and Scalability
A Cloud-based accountancy firm can easily scale to accommodate any changes in your business's size or requirements. You can adjust the level of services you require without the necessity of switching accountancy firms or dealing with logistical challenges.
Faster response times
Cloud-based accountancy firms are often more responsive due to the ease of communication through digital channels. If they are IT literate and are driven by effective internal systems and procedures, you can expect quicker responses to inquiries and a more creative approach to problem-solving.
Cloud-based accountants will typically work with digital documents and records. This reduces reliance on paper and thus contributes to a more environmentally friendly approach to accounting.
Regular Updates and Insights
One of the big advantages of using Cloud-based accounting software is that it often provides real-time financial insights and reports. This can help you make informed decisions for your business and working with an accountant who possesses advanced knowledge of this software can be very effective. This can be more challenging for a traditional accountancy firm who might only provide periodic updates and not be fully au fait with your accounting software.
Reduction in Geographical limitations
Another advantage of using a Cloud based accountancy firm is that you're not restricted to using an accountant who is based locally. You can choose from a much wider pool of talent and find an accountant who specializes in your industry or needs, irrespective of their physical location.
It's important to mention that any decision to use a Cloud-based accountant will depend on your specific needs, preferences, and the complexity of your financial situation. For example if you work in the Tech sector using a Cloud based accountancy firm may align well with your needs.
The best Cloud accountants are highly IT knowledgeable, using online tools effectively. However, equally they have the relevant financial experience and knowledge to support you and your business. They will possess a detailed understanding of the UK tax system and accounting standards so they can ensure your business is fully compliant. You would usually expect them to belong to a professional accountancy and or a tax body (like ourselves).
For more useful information, check out our Ebooks here.
And if you'd like to know how we can help you with all of this, or with anything else, feel free to give us a call on 01202 048696 or email us at [email protected].
Alternatively, please feel free to complete our Business Questionnaire here.