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Managing finances as a start-up may be a more tedious and time-consuming task and is more than likely to dampen the thrill of starting a new business. And while no one really wants to do it, it’s important to sort it out.
Traditionally, hiring an accountant for this would mean making expensive, out-of-pocket transactions with the hope of the investment cashing out in the long term. But thanks to the advancement of technology, small and medium-sized businesses (SMBs) can take advantage of more affordable, hassle-free qualified online accountants. Even better, 67% of accountants have said they prefer leveraging various cloud-based accounting software to provide their services remotely.
Services available
Online accounting services provide virtually the same services as traditional accounting services, with most firms boasting members of the Institute of Chartered Accountants in England and Wales (ICAEW). You’ll still be assigned a personal accountant and be able to enjoy having the following sorted without the admin of sitting down for a meeting,
- Accounts
- Bookkeeping
- Payroll
- Pensions
- VAT returns
- Tax returns
Benefits
Options: You’ll be able to choose whichever accounting software you prefer with expert advice and recommendations.
Cost-efficiency: Penny-pinching on financial planning services isn’t always the best idea. As with traditional accountancy firms, it’s up to you as a business owner to find a reputable service provider. A good cloud-based accounting firm will provide the same high-quality service without the overhead costs. You’ll usually be given discounted prices for software and get to choose packages as affordable as £20 per month.
Accessibility: If you have an internet connection and a device, you’ll be able to access your accounting software and records from anywhere at any time.
Quick turn-around: With in-person meetings rarely being necessary, email responses will usually be between a few hours and 1 working day. Bookkeeping, VAT and payrolls enquiries are usually answered in 7 working days, and records are reviewed quarterly.
Security: Where traditional accountants would keep your records secure on servers on-site, there is no risk of any loss on cloud-based software. Just as with online banking, advanced encryption and multi-factor authentication methods are used.
Adaptability: It’s easy to scale online accounting services as your business grows. You can switch packages with a click of a button to suit your needs.
What do I do?
As a business owner, you’ll need to sign up for cloud-based accountancy by providing the online accountant with your full name, business name and address. You’ll then get an engagement letter to read over and sign.
If you’re already with an accountant, usually you’ll be able to send forward the current accountant’s details and approve a letter authorising them to give your accounts to the online accountant. From here, your business will be moved to the cloud, and your services will be handled by an experienced accountant.
Conclusion
No question that cloud-based accounting is worth the buzz. You’re able to get the same advice from an experienced accountant at a lower cost. As a small business owner, cloud-based accountancy will allow you to focus on more important concerns for growing your business and worry less about your accounts.