Cloud-based accounting is the way forward
MORE than 90 per cent of small and medium-sized businesses will be using cloud-based accounting software by the end of 2017, according to a new Accountex report.
What does this change mean for business owners? Here are our top tips so you can offer more value to your clients and stay ahead of this accounting trend.
There are huge benefits to keeping your books in the cloud. It’s convenient, inexpensive and user-friendly.
With cloud-based accounting you will never be more than a few clicks away from an up-todate view of your business.
Xero and Quickbooks Online are leading the way globally, but they are not the only options for SMEs.
Cloud accounting software offers massive flexibility. If your accountant is using a cloud system, he or she can build a bespoke package to suit your needs. Xero alone offers over 500 add-ons.
For example, if you have trouble getting paid on time, your accountant can set you up with Chaser, a credit control software which provides tools and insights to effectively automate customer invoices.
If you want to send your accountant your accounts payable information quickly and easily, you can use an add-on called Receipt Bank.
These services can help to save time and money. If you supply your accountant with a real-time supply of financial data, he or she will be able to access the data to give advice in real-time on numbers from this week, not last year.
Other key trends in business and accounting in 2017 include mobile accounting which gives financial employees the flexibility to work from outside the office on their mobile devices.
Businesses are increasingly focussing on smaller, targeted customer segments. In marketing, there has been a shift towards aiming customised messages at a receptive and loyal audience. This is replacing the traditional, wider approach to marketing.
The paperless office will be a growing trend. New software tools are being developed that allow companies to securely manage files online. This mean improved efficiency at a lower cost.
The general trend amongst SMEs is the desire to be working smarter. In order to maintain a competitive edge, companies must look to maximise their efficiency whilst keeping costs in check.
Another trend within the SME sector is the increasing number of firms seeking some form of business coaching.
Business coaches can help firms work smarter whilst increasing profits, in most cases with less work. Leadership, management, HR, accounting and strategy are some of the key areas that a business coach can make more efficient.
Meanwhile, the New Companies Act 2017 that was signed into law in Ireland last month has led to some significant changes.
Since June 1, companies have to file all returns, change of details and accounts electronically. Currently, only 10% of companies in Ireland submit their accounts using this method.
The legislation is targeting terrorism-related crime through an EU anti-money-laundering directive that has been operational since November 2016.
Firms are required to keep records which have been registered in a new central registry. If a company does not comply with this request, they will be supervised by the National Bureau of Fraud Investigation in An Garda Siochana.
Companies will need to show their compliance with all aspects of the New Companies Act 2017 to ensure their corporate governance requirements are met.
Talk to the team at UHY FDW today to find out how we can help you bring your business into the future. Contact Alan Farrelly alanfarrelly@fdw.ie or call into us today on 042 933 9955.