LHP Sees 20% Increase in Cloud Signups Since Covid Outbreak
A 20% increase in Cloud accountancy subscribers (2020-2021) was recently reported by our LHP Cloud team.
Since the Covid-19 pandemic hit just over a year ago, Welsh businesses have been adapting fast to the new normal of remote working. At LHP we have seen an upswing in Cloud client uptake since March 2020, when Covid first started (compared to previous year results).
LHP’s client base has been growing at a fast rate this past year, resulting in the acquisition of two new LHP offices across South Wales during this time.
We put this increase down to business owners realising more during Covid the benefits of being digital. But also ongoing deadlines placed on businesses by HMRC to digitise their tax, to eventually replace income tax by 2023 (Making Tax Digital For Self Assessment). That has meant many businesses have or soon need to, move to the Cloud to do their bookkeeping. The reasons are twofold.
It is true, Covid-19 has seen Cloud accelerated in the past year, pushing many firms past their initial reluctance. Other similar reports of 18-20% increase in the Cloud industry across the world echo our experience here in Wales. The trend for cloud adoption is predicted to stay even after the pandemic has subsided, mainly because so many businesses now feel much more at home with remote working.
Some companies have now even adopted this as their main policy. In a survey by Computer Weekly, 66% of respondents said they will continue to increase their use of Cloud for the foreseeable future. Over half surveyed reported to have increased their cloud tools like MS Teams, Google Chat and Zoom.
Modernising the tax system and business finances per se, is only a good thing. As Xero Platinum Partners, we know the real benefits of being in the cloud for the customer – for time and money savings, and also convenience. Having said, that, it is a challenge for our team in the year ahead to take everyone along on a journey to digital – there is compliance involved and not all business owners are aware.
Client Manager at LHP, Cerith Williams reflected on the journey taken in the past year with local businesses across South West Wales.
“Due to Covid we have seen and encouraged people to go to the Cloud. With the help of DEXT for uploading invoices and receipts and Xero fetching direct feeds from the bank, there was no need to put clients in danger by leaving their homes.
We also brought in Zoom as a method of communication with the clients for management and catch-up meetings. In essence, our clients were safe at home during the pandemic knowing their accounts were being kept up to date.”
What are the benefits of Cloud Accounting exactly?
Some of the benefits of Cloud accounting software, say Xero, allow you to work from any location – to do things like reconcile your bank and raise sales invoices, on the train, or in a taxi between meetings.
You can also automate your bank feeds into the accounting system and automate sending invoices. And with the right add-ons you can also automate your payment collection.
With other integrations you can also help business owners make some great time savings – send a purchase by photo on your phone and it will extract data and add to Xero. GoCardless allows you to collect monthly direct debits automatically on invoice due dates to keep cashflow constant.
At LHP there has also been a trend towards increased outsourcing of finances, from outsourcing payroll, to outsourced finance directors (non-exec board members) and virtual bookkeeping services. Many business owners are discovering they can save money by spending on an outsourced service such as payroll or bookkeeping.
Whether you want to know what results Cloud can deliver for you, are interested in meeting tax compliance, or wish to learn the benefits of virtual finance services – jump on a call or have a cuppa with us! We are interested in learning how we might help you.