Being on top of your bookkeeping with Cloud Accounting makes tax time easy

Every business is different, from the activity is does to earn income to the number of people who work within in it but whilst there are a number differences between every business, the one thing that remains constant is the need for good bookkeeping. The process of recording & reconciling every financial transaction that comes through the business once meant that owners and managers would spend hours going through receipts and ledgers but thanks to the advances in cloud computing, this is no longer the case. Cloud Accounting systems such as Xero not only allow for easy bookkeeping & reconciliation but also ensure that data and invoices are secured safely in the cloud, meaning that your financial records are kept safe in case of a system outage. Not only are the advances in Cloud Accounting making the management of businesses easier, it also is a great tool when it comes to preparing and lodging your tax returns.  As a part of being ready for tax time, business owners would normally dread having to prepare income reports, reconcile statements and sift through receipts & invoice papers however, by having all of your records stored securely online, this is now a thing of the past. Even if you are not the best at reconciling your accounts every month or quarter, having all of your business transactions stored in the cloud makes this much more time efficient then the traditional way of preparing accounts. This is because for the majority of cloud accounting systems currently available on the market, their software can directly link to your business bank account, meaning that there is no chance of loosing receipts or double counting invoices. In addition to this, because everything is stored in the cloud, there is no chance of you loosing the files due to software corrupting or issues with your computers. As we have an ever advancing digital the world, The Australian Tax Office has worked alongside some of these cloud accounting providers to allow for complete integration for lodgement of documents including Tax Return, Activity Statement & Payment Summaries. This integration completes a full circle on accounting and bookkeeping requirements for small business, with transactions allowed to be traced and reconciled with ease, a simple report generation process stored securely in the cloud which can be directly lodged with the tax office. Something that hasn’t been touched on is the fact that cloud accounting is designed for small business owners, not accounting professionals. The user friendly interface and functionally across multiple devices allows business owners to seamlessly integrate this into their operations and thanks the app add-ons such as invoicing and payroll, it can become a very strong asset to the business. It should also be said that with all great features cloud accounting offers, these usually come as part of a membership packages with varying fees depending on the level of sophistication required for you reporting.

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