Cloud accounting seems to be the new buzz word in the accountancy / contractor market. When you search on Google the definition of what cloud accounting software is, I’m told its “similar to traditional, on-premises, or self-install accounting software, only the accounting software is hosted on remote servers, similar to the SaaS (Software as a Service) business model. Data is sent into “the cloud,” where it is processed and returned to the user.”
Traditionally accountancy practices used software such as Sage where it was installed on pc’s in the office and accessed by various users. Upgrades were often sent (on disk) and support packages offered at a significant cost to the business. Many accountancy firms do still use these types of accountancy software and are very successful so I’m not knocking it, however many clients are wanting to be more involved with the day to day figures and this is where I think Cloud Accounting is hugely beneficial, especially to contractors. It is accessed over the internet on laptops, smart phones, etc and can be accessed by client AND accountant. Benefits include having a clear overview of your current situation in real-time, being able to create and send professional invoices quickly and simply online and being able to produce and submit VAT returns in minutes amongst others. Everything is done online so there is no software to install and updates are free and managed by the cloud software company.
I use both Xero and Freeagent with Freeagent recommended for contractors. Freeagent is simple to use, yet powerful in delivering exactly what clients and accountants need. Its easy to understand dashboard lets you view what is happening with your business in real time and the handy app is excellent for using when on the go. Our Freeagent Contractor package is £84 per month. Contact me for more information on making the switch to cloud accounting and finding out how it can help your business finances stay on track.