Imagine a world where you can issue invoices and receive payments without having to find a desktop computer...
… You’ve finished a job, you turn to your client and with a few taps on your phone, they receive your bill. A quick tap on their tablet later and their payment is in your bank account.
We are already in that world and with software solutions such as QuickBooks Online, you can join many other successful small businesses who are enjoying the delights of digital accounting.
Until recently, bookkeeping software was always seen as a ‘desktop product’, loaded onto a disc or downloaded onto your computer. With the move to online accounting however, you can subscribe to use accounting software via an online provider and information is stored ‘in the cloud’ and accessed at any time over the internet.
Online accounting software enables thousands of small businesses manage their accounts through their mobile advice, allowing for real time insight, wherever they are.
But being more convenient and cost effective are not the only benefits cloud-based accounting software, such as QuickBooks Online, can offer businesses.
Tailor-made for success
Moving to digital expenses management has helped many firms stop having to use these complicated and unfriendly systems. Cloud-based services have been designed so they can be tailor-made to the exact requirements of each business, no matter what their size.
Digital systems are also changing the way businesses manage their expenses, with the move away from desktop computing unlocking ways to manage and monitor sales and costs not previously possible.
A smart way to log expenses
Backing this revolution in the cloud is the use of smartphone apps like BankStream and Receipt Bank that instantly convert paper receipts into a digital form.
By allowing receipts to be uploaded on the move, it means expenses can be submitted as and when costs occur, rather than business owners having to wait until they are back in the office so you can keep your accounting, customers and inventory in sync.
Smartphone apps have stemmed the monthly flood of paperwork as there is no need to set and enter information manually, not to mention a reduced risk of errors, omission or duplication. As a result, the management of expenses and issuing of quotes and invoices to customers becomes an ongoing function rather than month end task.
Small business owners receive an overview of their cashflow and profits in real-time and are thereby better-equipped to manage their business, such as identifying any products or services that are selling well against those that may not be.
Not surprisingly, by embracing cloud-based systems coupled with smartphone apps means they can help companies to protect themselves fraud.
So while cloud-based systems, like QuickBooks Online and the use of mobile technology may have initially been greeted with scepticism by the business community, many have now seen the advantages and are adopting them.
Log into the future today
If you haven’t already adopted a digital bookkeeping system, TaxAssist Accountants and our national partners Intuit QuickBooks, Bank Stream and Receipt Bank are available right now to help you choose the digital solution for you and provide industry leading advice and best practice marketing strategies for your business.
Contact us to be put in touch with your local TaxAssist Accountant, who will be only too pleased to discuss any of the pointers we have provided in this article and more.
By Fraser McKay
Last updated August 2016
Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.