The Future of Accounting, Apps and Automation
May 25, 2021
We have seen a seismic shift in the accounting sector which has led to a more dynamic, efficient, and progressive way of working.
There are several software providers who offer cloud accounting, Xero being a prime example. Since the early 2000’s we have seen a change in the accounting sector which has led to a completely new way of working for many accountants.
Whilst there still are many who undertake a more traditional way of working, others have benefited from enhancing their staff’s skillsets and knowledge by delving into the digital world. This has not only given them an advantage over others, but puts them one step ahead in adhering to HMRC’s ‘Making Tax Digital’ requirements. The undertaking of cloud accounting software by accountants for those who wish to be at the forefront of emerging technologies has also paved the way for many to provide additional consultancy services through the use of real time accounting data.
There is no denying the benefits of using cloud accounting software: anytime access, real time data and live bank feeds to name but a few. Aside from the features, the cost is another significant factor when deciding which software to use. Many clients have been faced with costly product upgrades each year as well as increased pricing. However, Xero for example, represents great value for money with a monthly rolling subscription, with no hidden extras. So, have you explored how Xero could work for your business?
The coronavirus pandemic further highlighted the need for businesses to have a complete insight into their finances, whether it be up to date accounts to access government grants, or to ensure effective cash flow management. The requirement to have real time, robust financial data has never been so important. As businesses move to a hybrid working system, the need for cloud-based and accessible accounting software is now a requirement, rather than an option, to enable staff to continue their roles regardless of where they are based.
We have seen a complete change in the methods used to perform day to day accounting tasks. Whether it be through a live bank feed in real time, or the utilisation of apps to enhance areas such as credit control. Cloud software now allows you to automate the bank reconciliation process by utilising bank rules for efficiency and automatic posting of journals.
There is no doubt we are witnessing a change in the role of an accountant, driven by the introduction of new technology and regulations. Our clients deserve to be kept up to date with the latest technology which only helps them adhere to new regulations, such as Making Tax Digital. Many would argue HMRC have paved the way for a need to record financial records digitally, but was there already a shift to modern day accounting?
Regardless of where digital adoption originated, we are currently seeing a surge in interest from many businesses who require real time, accurate reporting. More so for cash flow purposes, but also to regain an understanding of where their business is positioned. The likes of Xero and its excess of 800 apps makes it a very popular option for businesses who want to delve into the modern way of accounting and ensure they have a complete, real time insight into their finances. Gone are the days of receiving out of date management accounts, why not get on board with the cloud movement and reap the benefits too?
There is no question that Xero is positioned at the top of the market with an average price of £20 per month, considerably less than many other rival software providers. Price, paired with its unlimited number of users and ability to build with the use of apps makes it even more appealing.
Contact us for a free Xero demonstration and how you can benefit from using this software.
Please contact our Cloud Accounting team to learn more.