With businesses experiencing a price squeeze due to record high inflation it is not surprising that many firms are looking at ways to save money.
However, unbeknownst to many business owners, they may already have a solution at hand – cloud accounting.
All VAT-registered businesses should be using one form of cloud accounting to comply with HM Revenue & Customs (HMRC)’s Making Tax Digital regulations already.
However, there are many other benefits available to business owners that go beyond simply remaining compliant.
Managing cash flow
Late payments continue to plague many small businesses. Cloud accounting offers businesses a handy tool for nurturing a healthy cash flow and automating the credit control process.
As accounts are constantly updated, it is much easier to spot growth opportunities as well as potential issues as soon as they arise.
For instance, if a product or service experiences a sudden increase in demand, this can guide you to increase production and sustain sales, which in turn facilitates growth and a healthier cash flow.
On the other hand, the insight from data can also highlight issues, such as the cost of a raw material you use increasing, which could reduce your cash reserves.
Many platforms can also produce and chase invoices automatically, helping you to make sure you get paid on time, every time.
Cloud accounting allows you to access your accounts from anywhere, providing you with an opportunity to evaluate your company’s fixed costs in real-time.
For example, if your costs for materials rise suddenly, you may be able to spot this earlier and seek out a lower-cost supplier, without having to spend a long time reviewing your accounts.
Cloud accounting could also help you to spot redundancies in your business, such as the need for workspace.
For example, the need for large office spaces could be redundant if more employees are opting for a hybrid working approach, or solely working from home.
Cloud accounting can help to highlight this ongoing cost to you and inform your decisions when it comes to reducing your regular outgoings.
As you are already obligated to pay for cloud accounting software, it is worth considering how to get the best value for your money, by harnessing the full power of the software.
In fact, by using cloud accounting to automate more processes, productivity can be dramatically boosted, thereby increasing employee output.
The software allows repetitive manual data entry tasks to be eliminated by automatically updating data, while associated apps can help you to scan receipts and invoices, so they can be stored and managed digitally.
This not only gives your employees more time to dedicate to other tasks but also reduces the number of human errors – which, again, saves valuable time and energy.
Looking to optimise your business’s cost using cloud accounting? Please contact our specialist accounting team at firstname.lastname@example.org or 01494552100 or your usual Seymour Taylor representative today for assistance.
This blog is for guidance only, professional advice should be obtained before acting on any information contained herein. The information was correct at the time of publishing 13th May 2022.