What is Cloud Accounting?

Cloud accounting allows you to access your financial data in real time from virtually anywhere with a web-compatible device. Just as online banking provides you with transaction details, so too can the cloud deliver your financial data.

HMRC is modernising the tax system in the UK with the aim of being one of the most digitally advanced tax administrators in the world. In April 2019, HMRC introduced Making Tax Digital. Any business above the VAT threshold is required to keep their records digitally using Cloud accounting software and provide quarterly VAT updates. Any businesses below the threshold can voluntarily choose to use a cloud-based solution. 

It is forecast that from 2021 all UK businesses will be required to conform to MTD and submit all tax information online, on a quarterly basis. Choosing to use cloud accounting software now means that your business is ready for MTD compliance when it happens.

Advantages of Cloud Accounting Software:

  • Access to your accounts from anywhere with internet access
  • Some packages have apps which run on iPhone or Android. 
  • You can easily share information with other team members and your accountant
  • There are low start-up costs as you do not need to purchase the software.
  • Regular updates are made to the software. 
  • Your data is automatically backed up to the cloud.
  • Support is normally included in the monthly price.
  • Most providers offer a free trial.
  • You do not need a large disk space to store cloud accounting software.

What Cloud Accounting Software should you use?

Clamp Boxall can offer multiple cloud-based solutions from our partners and can recommend a solution for your business. The key is knowing what your needs are and what cloud service providers offer. Our current partners include: QuickBooks, Pandle, Xero, ClearBooks and Sage. Monthly charges start from £5.00 per month. If you prefer to use cloud software from a different provider, we are happy to work with you.

How do I know how to use the software?

There is a learning curve with any new software package but Clamp Boxall try to make this as easy as possible for you. There are two options:

  1. Let Clamp Boxall help keep your bookkeeping up-to-date. Using cloud software, we will manage all your business transactions and reporting including uploading all receipts and statements. You will be able to access all figures and generate reports from the software.
  2. If you prefer, you can do your own bookkeeping using the cloud software. We will provide you with links to online training resources and if you get stuck, we can answer any quick questions over the phone, or if necessary, we can provide training in our offices. 

Please contact us to discuss any of your company’s requirements.