What does online accounting involve?
New cloud accounting packages can make accounting easier such as Xero, Freeagent and Crunch. Some software agents will promote the price of an online accountant but please beware that this is often for the software only. Whilst accounting is being made easier by advantages in technology the profession is not dead yet and you will still need an accountant to make things run smoothly.
What are the advantages of cloud accounting packages?
- Ease of access – the accounts package will no longer be stored on a server or computer, so you access it from anywhere and across multiple platforms. Most packages will have apps which means the software can be accessed on computers, tablets or phones.
- Bank reconciliations – cloud accounting packages can link to online banking. This makes the bank reconciliation process much easier as you don’t physically need to extract bank statements and can allow a bookkeeper to reconcile your bank account remotely. The software will also suggest posting for repetitive transactions making the process quicker.
- Ease of Accounting – The packages allow you to automate certain elements of the accounting process. For example, certain suppliers and invoices can be linked to nominal codes.
- Making Tax Digital – The online accounting packages mentioned above are all compliant with making tax digital. They all have VAT modules which will integrate with your ledger and can also allow direct submission of VAT returns in line with MTD.
- Cost – Online accounting packages are cheap to use. Prices of the software we work with start from £10 per month. Do not be penny wise and pound foolish and steer clear of the free packages.
MJ Accountancy provides a fully managed accounts service where we can manage your entire accounting function through online accounting software. This will include monthly bank reconciliations, payroll and a monthly financial report which will be emailed to your management team to allow you to track business progress. We will also submit VAT and other tax returns on your behalf.
Contact us to find out more about our managed service.