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How can cloud accounting software help you?

What is cloud accounting software?

In simple terms, cloud accounting refers to the use of online accounting software that is hosted on remote servers and accessed through the internet. Cloud accounting software is designed to be user-friendly and intuitive, meaning you don’t need to be a financial expert to use cloud accounting software.

With cloud accounting, as long as you have an internet connection, you can access your accounting software and financial data from anywhere, at any time. If you frequently find yourself on the go you can upload receipts and raise invoices from within a mobile app, saving you time and allowing you to focus more on your business. Your accountant also has real time access to information you upload, helping ensure that any compliance work carried out is with the latest, accurate information.

Below we outline some benefits to utilising cloud accounting software for managing your finances as well as some of the providers that our clients use.

How does cloud accounting work?

Cloud accounting works by leveraging cloud computing technology to store and process financial data. Instead of relying on local servers and software installations, cloud accounting software uses remote servers and internet connectivity to provide access to financial information in real-time.

All you have to do is upload evidence of transactions you undertake and the software will store this in a centralised database, allowing for easy access. Some providers also link to business bank accounts meaning your transactions will seamlessly be uploaded as soon as they are undertaken.

When you use cloud accounting software, your financial data is stored securely on remote servers. These servers are maintained and managed by the software provider, ensuring that your data is protected and accessible whenever you need it. This means you no longer have to hold on to physical receipts and hand over files to your accountant to compile annual accounts.

Bookkeeping used to consist of labour intensive processes of sorting through receipts, invoices and bank statements one by one and entering the relevant information into ledgers and spreadsheets. This process was time consuming, expensive to outsource and prone to errors. With the right bookkeeping software you can avoid much of this task, saving you time and money. There are even some products that utilise artificial intelligence to read information for you, seamlessly transferring data to the cloud and ensuing your expenses are accurately and promptly filed without you having to manually enter them.

To access your financial data, all you need is an internet connection and a web browser. You can log in to your cloud accounting software from any device with an internet connection, whether it’s a computer, laptop, tablet, or smartphone. Your cloud software will provide a user-friendly dashboard that gives you an overview of your most important information, enabling easy tracking of key performance indicators.

Key benefits of using cloud accounting software

There are many benefits to using cloud accounting software and each provider offers a different way to accomplish your goals.

One of the most obvious benefits is the amount of time you can save by reducing administration and errors. Your data will always be up to date and available meaning you do not have to constantly update spreadsheets and wonder what the most recent numbers are. Your bookkeeping will be greatly simplified and you could save money you may have otherwise spent on a specialist bookkeeper. There is no need to constantly update your accountant with new information since your data will be shared in real time. Software such as FreeAgent and Xero can even connect to your business bank account and automatically import transaction data. By utilising the full power of cloud accounting you can save time, reduce errors and eliminate the need for storing paper records.

Cloud accounting software also ensures compliance with HMRC’s Making Tax Digital (MTD) requirements for VAT, if you are VAT registered. MTD requires VAT returns to be submitted online through compliant software. With the right cloud accounting software you can easily manage your VAT returns and submit them digitally to HMRC. For sole traders or individuals with property income over £50,000 in the UK you will need to prepare for MTD for Income Tax Self Assessment, which is starting in April 2026. Many cloud accounting software providers are making provisions for this and getting to grips with the requirements and software in advance of the registration deadline can help you ensure compliance.

Another advantage is that cloud software is scalable. As your business grows you will not have to overhaul your systems and processes. It is easy to add more users and keep track of employee expenses as well as adding features to allow you to maintain a comprehensive overview of your business as it grows. You can easily track key performance indicators, such as cash flow, and monitor your business growth and finances.

Implementing cloud accounting software in your business is a simple way to increase efficiency, ensure compliance, reduce time spent on accounting and ensure your data is always up to date and available.

How cloud accounting supports small businesses and the self employed

Whether you are a small business owner, contractor working through a limited company, or a sole trader you will benefit from cloud accounting software. Choosing the right software for your needs is important as some are tailored towards certain businesses. If you are unsure what is the best fit for you then get in touch with us and we can advise you on the software that is going to be the best for you.

There are many providers who specialise in providing cloud accounting to small businesses and contractors such as Xero or FreeAgent. These were built with small businesses and self employed individuals in mind and offer you a comprehensive suite of features that can help you better manage your business finances. If you, or your team members, incur a lot of expenses then using software such as Dext or Hubdoc can help you quickly upload receipts without having to worry about manually entering them into a spreadsheet.

Some cloud accounting software options

There are a multitude of options for you to choose from when using cloud software. Here are some of the providers that our clients use and enjoy.


A very user-friendly option aimed at contractors and freelancers. We have had a close relationship with FreeAgent since they started and were one of their earliest accounting partners. We are now a Platinum Partner and have many happy clients using this product.


Xero provides a variety of tools tailored for small businesses. With its mobile app, users can conveniently handle tasks while on the move. Xero is ideal for small businesses and offers inventory management for businesses that have to hold stock for customers.


An offering from Intuit aimed at small and medium sized companies. Similar to Xero it provides simple, smart accounting software that helps you take control of your finances.


A relatively late entrant to the market for cloud accounting, despite being an established desktop software provider, but growing rapidly.


Software that collects data from your financial records and posts it to your accounting records. This can be very useful and helps you keep up to date with things as you go along as well as saving time on admin and ensuring data accuracy every time.


Reads key information from bills and receipts and turns it into usable data. Very helpful if you are out and about and collect paper bills and receipts. You can handle these as you go along. You can take photos on your mobile, use email, scan or upload documents and then Hubdoc will do the data entry by reading the key information from bills and receipts and then turns it into useable data.

Integrating Cloud Accounting Software into Your Business

The steps to integrating cloud accounting software are simple:

  1. Setup: Setting up cloud accounting software is typically straightforward. Most providers offer guides and videos to help you get to grips with the product. We also offer our clients unlimited access to a dedicated accountant who is able to guide you through setting up and be on hand to answer any questions
  2. Automation: Automate tasks such as invoicing, payment reminders, and expense tracking to save you time and ensure accuracy. With the ability to raise invoices on the go and automatically track payments you can ensure your cash flow is optimal.
  3. Bookkeeper and accountant collaboration: Cloud accounting software allows for easy collaboration with your bookkeeper and accountant. Your accountant can access your data in real-time, allowing them to provide insights and advice based on up-to-date information.

Integrating cloud accounting software into your business can streamline your accounting processes, improve accuracy, and provide valuable insights into your financial health. If you want to get started with cloud accounting software then get in touch with us and we can see how we can help you integrate cloud accounting services into your business.

Frequently Asked Questions

What makes cloud accounting preferable for small businesses?

Cloud accounting software helps small businesses to stay on top of their accounting and bookkeeping. You can share information with your accountant much more easily than with traditional accounting software allowing for accurate compliance and saving you time. The insights you can gain from utilising all the features of cloud accounting software are vital in helping small businesses stay on top of finances and ensure profitability.

How can I ensure my data is secure with cloud accounting software?

Cloud accounting software providers use advanced data security measures, such as encryption and access controls, to protect your financial data. Your data is stored on remote servers, which are securely managed by the provider and can only be accessed by yourself and your accountant should you wish to share the information with them.

Can cloud accounting software scale with my business?

Yes, cloud accounting software is designed to scale with your business. As your business grows, you can add more users and expand your data storage. Cloud computing technology allows for business growth and can ensure you keep track of your growth.

What are the initial steps to transition to cloud accounting?

To transition to cloud accounting you first must choose a provider. Once you have selected one you can easily set up your account and start making use of the features available to you.

Looking for a wide range of accounting support?

If you are interested in switching your accountancy to us then get in touch today.
We will organise a free consultation, where one of our specialists will talk you through your options.