---
title: The benefits of cloud accounting software
description: Businesses in the UK are switching to cloud accounting software to successfully manage their bookkeeping, accounts, VAT and payroll.
image: https://blog.shorts.uk.com/hubfs/Downloaded%20Hubspot%20Stock%20images/Close%20up%20of%20human%20hands%20using%20virtual%20panel.jpeg
---

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# The benefits of cloud accounting software

Alicia Williams - 23 January 2018

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###### 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](https://info.shorts.uk.com/research-and-development-tax-relief-1).

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Other recent articles;

- [Why should I convert to cloud accounting?](https://blog.shorts.uk.com/why-should-i-convert-to-cloud-accounting)
- [5 Ways Xero software can improve profit margins for landlords](https://blog.shorts.uk.com/5-ways-xero-software-can-improve-profit-margins-for-landlords)
- [Shorts - The Region's first Xero Platinum partner](https://blog.shorts.uk.com/shorts-confirmed-as-regions-first-xero-platinum-partner)

 

![author](https://blog.shorts.uk.com/hubfs/Alicia%20williams-1.jpg)

#### Alicia Williams

I am Partner of the Genus team at Shorts, a chartered certified accountant and Xero specialist. I specialise in cloud-based accounting solutions, particularly Xero and add-on software, helping clients streamline processes and improve efficiency. As a Client FD, I work closely with businesses to give them a clear understanding of their current position and support their long-term planning and growth.

[View my articles](https://blog.shorts.uk.com/author/alicia-williams)

 Tags: [Xero](https://blog.shorts.uk.com/topic/xero), [GENUS Management Accounts](https://blog.shorts.uk.com/topic/genus-management-accounts), [Accountancy Services](https://blog.shorts.uk.com/topic/accountancy-services)

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