With ongoing advances in technology, the cloud has become increasingly popular to businesses in a number of ways. It provides a safe and secure platform for businesses to manage and store their data whilst also providing opportunities for scalability.
The cloud is tremendously important to modern day businesses and many are now turning to the cloud for their financial reporting because of the following benefits involved:
1. Convenience and versatility
You can connect to the cloud anytime from anywhere.
The ease of access allows for greater functionality and allows businesses to operate on a larger scale. Data can be accessed on any device from any location allowing you and your employees to always have the information to hand and see how the business is performing.
2. Real time reporting
Many cloud based systems now link automatically to your business bank account. This allows you to see how the business is performing at the click of a button and increases efficiency as the transactions no longer have to be manually entered.
Ashored strongly recommends regular management reporting so that you can review how the business is performing and make strategic decisions based on current events rather than historical data. The ease of access and ability to integrate with other software programmes means that you can view and enter data from any location as it happens.
3. Enhanced security
The cloud provides a secure place for your sensitive data to be stored as it is regularly backed up and is less vulnerable than on site software. Technical complications resulting in business down time and man made disasters create huge financial burdens on businesses but by storing data remotely it protects against this and allows the business to continue operating.
Financial software providers allow you to select who has access to the information and will often allow you to see who and when the information was last accessed by.
4. Data storage
Businesses rely on vast quantities of data in order to operate. Financial data accumulates quickly, managing and storing the data can be time consuming and costly. Storing the data on site puts it at risk of being compromised whereas online storage allows businesses to grant selected individuals access to the information. Ashored works with a number of software programmes which allow you to scan your receipts and automatically upload them for safe keeping. This is far less time consuming than having to file or search for a particular receipt and less costly than having to pay for additional storage,
5. Lower cost of ownership
Data storage and cloud based financial software is often cheaper than having on site software. It can be accessed by multiple individuals at one time rather than being restricted by the number of licences or machines with the software downloaded. Rather than incurring an initial outlay for the purchase of the software cloud based packages are paid for by regular direct debit allowing you the flexibility to switch software and pay for supporting software as required.
6. Compliance with business reporting requirements
The Governments plans for Making Tax Digital begin to take effect from 1 April 2019. Businesses shall be required to record financial data electronically on Making Tax Digital compliant software. Digital links will then connect the information and present it to HMRC as required. Many online financial software providers already allow businesses to report directly from the software to HMRC meaning that your business shall face less disruption from the forth coming changes.
With ongoing advances it is important for businesses to adapt to new technologies in order to remain compliant and ahead of the competition.
Contact Ashored for further information and support on cloud based financial software and Making Tax Digital changes ahead.