The impact of technology on business is being seen in a large number of ways with the adoption of cloud software such as Office 365 and Google Apps. New technology has also been changing the way companies handle their accounting administration.

A range of low cost, cloud based, accounting software packages are helping to deliver real efficiencies and savings.

Here are five key benefits that could help drive some real time and money savings:

1) Save time – reduce the amount of time you spend inputting data

By securely connecting your bank account direct to your accounting software you can have up to date financial information without the need to rekey the data. Software such as Xero links with most of the main high street banks.

In addition to the bank links, online accounting software can also help reduce data input in other ways, such as:

– Linking directly with your ecommerce site or point of sale terminals

– Accessing services that automatically scan and extract information from your purchase invoices, ready for import into the accounts (e.g. Receipt Bank)

2) Benefit from both intelligent and user friendly software that learns about your business

New online accounting packages, such as Xero and FreeAgent, have been designed with the user in mind, not their accountant. They have reduced the accounting jargon and highlighted the important aspects of the numbers for easier review.

With cloud accounting software, it is also possible to train the accounting software to recognise common transactions and post them to the appropriate nominal codes. This helps improve the accuracy and efficiency of the reconciliation and accounting process.

3) Perfect for your mobile, flexible office

Having secure access to your accounting information through a web browser means you can check on your performance at any time and from any location with an internet connection.

In addition, you can attach electronic copies of supplier invoices to the actual accounting transaction, meaning you don’t have to go digging around in the filing cabinet looking for paper copies.

The main providers all come with mobile versions of the software which enables user to raise invoices, submit expense claims and even reconcile the bank while on the move.

4) Always have the latest version, with strong security built in

There is no need to spend time installing new updates – the software is being constantly updated in the cloud, so you have the most up to date version. In the past that was always a problem, particularly if your accountant had a different version.

Data security is a key consideration when using any new online software. The leading software suppliers in this area have invested in secure servers with recognised providers such as Rackspace. This mitigates the risks that on-premise software is susceptible to, such as fire and theft. There is also no more transfer of data on USB sticks and all the security issues associated with them.

5) Make better decisions

The impact of all of the points above adds up to you being able to make better informed, more timely decisions for your business.

The ability to see your information in real time in an easy to understand format will hopefully be a benefit for you. You are able to share the information online with your team and advisers to collaborate on decisions, wherever you are all located.

Need assistance?

Our Business Solutions team are on hand to help. Get in touch with a member of our Business Solutions team today for an initial chat to find out how we can you move your accouting online.