The future of cloud accounting is bright.
Business owners and accountants no longer need to rely on overly complicated spreadsheets or slow accounting systems to manage their financial data. Instead, they can access the information they need at the click of a button.
So what’s next for cloud accounting?
What is the future of cloud accounting?
A modern tax system for the modern age
Making Tax Digital (MTD) is part of the Government’s strategy to digitalise the UK tax system — and cloud accounting software is playing a vital role.
MTD aims to:
- save you time on your tax return
- make it easier to get your taxes right
- improve the accuracy of digital records
Millions of VAT-registered businesses are already using MTD-compliant accounting software to keep digital records and file their VAT returns.
Self-assessment customers will follow suit from 2026 onwards, and the Government plans to phase in MTD rules for corporation tax in the not-so-distant future.
It’ll be a few years before the tax system is completely digitalised, but software providers are preparing for this new way of doing taxes as we speak. You’ll be able to use cloud accounting software to submit your tax returns before you know it.
Connecting with others
With many people working remotely following the Covid-19 pandemic, it’s important for systems to change with the times — and cloud accounting is doing just that.
Multiple users can look at the same data at the same time — so long as they have an internet connection. As cloud accounting evolves, it could become easier and quicker for small businesses to collaborate with accountants and access expert advice.
Tailor-made cloud accounting software
We know that accountancy is not a one-size-fits-all solution. Each business comes with its own set of accounting challenges to contend with. In the future, users may be able to customise the software more easily to meet their unique business needs.
We’re already seeing that in action, with software providers like Sage offering specialist support for industries such as manufacturing, customer service and wholesale distribution.
Easy integration with other software is also transforming the way we do business. The Xero app store, for example, allows users to connect their accounting software with a wide range of apps — from HR systems to payroll processes.
As cloud software becomes more sophisticated across the board, integrating your accounting processes with other systems will help you understand your business from every angle.
What about accountants?
As useful as tech can be, nothing compares to the years of experience an accountant can bring to your business. The way we see it, technology doesn’t replace us — it simply enhances our ability to deliver outstanding accountancy services.
We want our clients to have the best of both worlds: first-rate technology combined with expert financial advice. With all your financial data stored on the cloud and your processes automated, we’ll have more time to focus on making your business thrive.
Making the most of cloud accounting
Cloud accounting was barely on the map a couple of decades ago, but it’s since revolutionised the accountancy world. Relatively speaking, the technology is still fairly young, so it’s still evolving.
That means anything is possible — within reason. New technological developments, such as AI and machine learning capabilities, may make it even easier to analyse financial data and draw up accurate budgets.
While we can’t predict the future, we can keep you up to speed with the latest developments in cloud accounting technology. As tech-savvy accountants, we can help ensure you get the most out of your software.
Get in touch with our team to find out what the future of cloud accounting means for your business.