5 Main Benefits of Cloud-Based Accounting Software

There are so many advantages to be gained from using cloud-based accounting software. Here are the top 5 benefits in our opinion…

1. MTD compliance

You may have heard of MTD (the government’s Making Tax Digital initiative) in relation to VAT, but it’s set to expand further taking in income tax self-assessment in April 2024 and corporation tax in 2026. And currently, while only businesses above the VAT threshold need to register for MTD, from April 2022 VAT-registered businesses beneath the threshold (ie those registered for VAT voluntarily) will also need to comply.

2. It saves so much time

It’s way quicker to input your data into accounting software as you can take advantage of bank feeds (link directly to your online banking and watch your transactions filter through automatically), you can set up rules to automatically classify transactions, and you can link your accounting software to systems such as Dext Prepare which scans your bills and extracts the information, saving you having to type it in.

3. Data backup

Your data is held securely in the cloud. No back up required.

4. File attachments

You can easily and quickly attach documents to your transactions, which avoids having to keep paper files for your accounts.

5. Individual user log ins

By having a separate log in for each person accessing your bookkeeping you can ensure that a full audit trail is available and you can set each person different levels of access as required. It’s ideal for remote team members, and your bookkeeper and accountants can have access too.

If you would like to make the move to Xero from either a manual system, spreadsheets or another bookkeeping software, please do get in touch.

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