Technology is evolving at a pace that we are finding hard to keep up with. Like it or not, technology now has a major impact on every part of life. Thankfully, the majority of the time it is a positive impact.
Cloud-based accountancy software has definitely made contractors life’s much easier.
For those who are unsure what cloud-based software is, it is another name for internet based software. Therefore it is accessible on differing devices (desktop, tablet, mobile) that has a connection to the internet.
Contractors and freelancers who use it say it has made understanding their businesses’ financial data much easier. What they like is, it;
“cuts back on the time they spend doing their accounts”
“is easy to use, even for technophobes”
“they can access it anytime, anywhere”
Cloud-based accountancy packages are ideal for busy contractors and freelancers as:
- they require no software upgrades
- it is accessible anytime, anywhere (as long as you have an internet connection)
- the accountant has access to the same data as them
- they can raise invoices through it
- it can help estimate corporation tax
- it can be used to keep track of dividends
Cloud accountancy and Making Tax Digital
By 2020, every business must report their tax information online, using a compatible accountancy software package. The first roll out starts in 2018, when sole traders and partnerships will be required to report their tax information online.
Cloud accountancy and accountants
Cloud-based accountancy software has been described as a ‘virtual accountant’, but it should NOT signal the end of the relationship contractors and freelancers have with their accountant.
Cloud-based accountancy software packages can not provide you with strategic tax planning and advice. You cannot call upon ‘the cloud’ to help you with a question about VAT, for example. However, using the two in conjunction will make you a super-powered contractor or freelancer.
If you are looking to upgrade to a cloud-based accountancy package, speak to us today to find out the many benefits it can have to your business. Speak to us 020 8952 2234.