Small businesses in the UK have increasingly been switching to cloud accounting software to successfully manage their bookkeeping, accounts, VAT and payroll. We take a look at the benefits of cloud accounting packages like Xero over more traditional accounting software like Sage 50.
Traditional accounting software
Although traditional desktop based software, is good for recording data and keeping good records, they do have several draw backs.
- The software and data are not up to date – which means you will have to upgrade to the latest version – usually at a cost.
- Limited user access, due either to limits in the software or the fact that its only on one computer.
- Although am leap forward from Excel sheets and paper records these pieces of software can be difficult to navigate.
- Most offer support but at an additional cost which can be expensive.
- Hardware required – for example servers and hard drives add further to the cost.
- It can also be expensive to keep back ups
- Reports tend to be basic or difficult to format and can lead to an over reliance on Excel sheets which can be unstable.
- Information contained within the system can be difficult to find and is not set up for the non-accountant.
The result is an unnecessarily time-consuming process, with minimal and inaccurate results to show for it.
Cloud based accounting software
Cloud accounting software, however, enables books and records to be held online in one clear and intuitive space. Some of the many advantages include:
- Quick and easy data entry
- Faster software and backed up data storage
- Customer support is usually included within the fee
- Information (such as invoices) can be found rapidly and anywhere with internet access
- It can be tailored and adapted to individual businesses
- A variety of add-ons can be used for specific business needs
- Affordable with many packages to choose from, usually on a low monthly rental model
- Better reporting within the systems and linked directly into the accounts using an approved add-on and therefore giving better business insights much quicker and more simply.
It also enables users to access their accounting information on the go and via a variety of devices. It has made modern day accounting easily understandable for all users, regardless of their accounting experience. As a result, businesses can spend more time to focus on nurturing and growing their business, rather than on their accounts.
There are a range of cloud accounting platforms on the market. Xero is an extremely popular option for businesses as it provides a diverse range of intuitive accounting solutions, prices start at £10 per month up to £27 per month for an unlimited number of users and including support.
There are also over 500+ add-ons tailored to specific business needs and tasks which can both save you time, cost and make your processes more efficient and effective. Please click here to arrange your free consultation.
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