3 Ways to Simplify Your Finances With Cloud Accounting Software
Author: Sam Hart LHP Digital Manager
For our 70-strong team of cloud accounting specialists based at five South Wales offices, our mission is to help you thrive adapt and grow in business. Back in 1935 when LHP started out, this involved traditional accounting methods, but today we’re at the forefront of Cloud technology and it’s through cloud automation, insight, and scalability that time and money benefits can be realised.
At LHP, most of our 4,000 clients are in the Cloud or have plans to switch to Cloud. My role involves advising business owners across Southwest Wales on how to run better finances in the Cloud, saving business owners time and money, gaining them ease of use and adding more convenience into their lives. When it comes to simplifying finances, you can expect these three things when you run your finances are in the Cloud.
1. Accountants can access your account online instantly.
Gone are the days of reporting an issue with your finances to your accountant and then having to wait for an on-site visit to see what the problem is your end. With Cloud, our accountants instantly access your account to troubleshoot when needed, cutting out any unnecessary visits and headache call out fees. Meanwhile you get the benefits of instant access and real-time insights, with no nasty surprises or delays. Sometimes you need that instant access to provide data to bankers and funders. In the Cloud, data is quicker to find, reports are more easily accessed, and support is instantly resolved, saving lots of time.
2. Business payments are automated, reducing manual tasks.
Cloud accounting has benefits that equate to less work for you. For example, automating business transactions like the recurring sales invoice feature, where your invoices are automatically generated and sent out, without you doing any work whatsoever. Automated functions include importing daily transactions by connecting to your bank account, making applying for that bank loan much easier.
For VAT registered businesses, VAT returns are automatically prepared in the background as you input data in real-time, allowing you a sneak preview on predicted VAT payable per quarter. Great for managing cash flow and understanding the big picture. Xero is accessible any-time, any-place, so you don’t download anything to your computer. You can even invoice someone on your phone before you get back to the office after a meeting with them!
3. Instant access to Apps really help to simplify business tasks.
There are over 800 Apps that work with Xero to help run your business easier. Shopify for businesses with online websites, Stripe for organisations wanting to add on a payment service to get sales invoices paid quicker. There are even Apps for farmers that provide solutions specific to them.
At LHP, we help businesses streamline the way they record accounts, adding in Apps like Dext.
Dext converts mobile phone photos of your purchase invoices, pinged over in a press of a button into cleverly extracted financial data, published to your accounting software.
When it comes to choosing your Cloud Accounting package, we recommend a handful. From Xero, QuickBooks and Sage to KashFlow and FreeAgent. There is no ‘one size fits all’. FreeAgent for example is free to those that business bank with NatWest. QuickBooks is well-suited to those with stock-based tracking systems. It does depend on your situation. Generally speaking, Xero is very popular for its user-friendly, ease of use and affordability benefits. For this reason, we are Platinum Xero Partners.
Are you prepared?
Did you know you may need to avoid penalties if you are not already digital?
At LHP we are busy moving clients to Cloud based accounting to ensure compliance with the new Making Tax Digital (MTD) government led legislation already underway. This scheme is changing the way businesses record their finances forever. Making Tax Digital has been around for a couple of years now, firstly affecting VAT registered with turnovers above £85k, now being rolled out for all VAT registered, who need to be ‘MTD ready’ by April 2022. For all self-employed business with turnovers above £10,000 per year including landlords, Making Tax Digital for income tax will be rolled out in 2023. For those that don’t comply, expect to face financial penalties. If you’re a start-up it’s advisable to use Cloud accounting from the get-go, to avoid a switch to Cloud in 2022-23.
If this interests you, or for further discussion, Let’s Talk. We promise to make your life simpler, by freeing up time and saving you money – and that the move to us will be as seamless as possible.