Moving to Cloud Accounting Software Xero

Over an incredibly short period of time, technology has changed the way we interact and live in our day to day lives and especially how we do business and store data.

Cloud technology for accounting software is not a new thing. Most businesses will have already made the switch, however, as a financial trader, you may not have thought it to be worthwhile for you to utilise cloud accounting software as you will have access to lots of reports within your trading platform that show your profits.

However, we have worked with many financial traders over the last couple of years that have found out how useful it is to use cloud accounting software as it enables keep track of your taxes, dividends and expenses that you won’t see on your trading statements.

In this article we look at what cloud accounting is, the benefits of using it as a financial trader and how easy it is to make the switch. 

What is Cloud Accounting?

Cloud computing is not a new concept. In a nutshell, cloud computing is the process of sharing resources over a network of servers, as opposed to your hard drive on a single computer. Most people and businesses already use some form of cloud computing from emails to streaming services. Cloud accounting allows daily transactions and processes to be stored in the ‘cloud’ rather than traditional paper methods or offline software (like excel). This means your accounts are securely encrypted online and have a significantly lower risk of theft. Plus, they’re up to date and can be accessed on multiple devices.

What are the benefits of Xero, our recommended Cloud Accounting Software, for you as a financial trader?

  1. Keep track of big costs. Your trading platform will tell you where you are with the trades themselves including any trade costs, but with Xero, you can keep track of any big costs such as assets, travel and software subscriptions. You will basically have a well-rounded overall picture of your business and investments, not just your trade performance. This will help you keep track of corporation tax bills, dividends and expenses. Outside of trade costs, financial traders are notorious for missing expenses from accounts and not getting relief for the money being spent as they are not easily tracked. Using Xero expense tracking allows you to closely monitor these so that you are claiming all of the tax relief you can.   
  2. Running totals of investments – Xero enables you to see a running total of how much you have invested in your business at the touch of a button. This not only illustrates the amount you have put into the business but also how much can be withdrawn without paying any personal tax on.
  3. Compliant with Making Tax Digital. You will need be compliant with Making Tax Digital soon and using a package such as Xero will allow you to get ahead and ensure your records are in good order – this will stop HMRC from coming knocking.
  4. Lower accountancy fees. If your bookkeeping records are messy, we have to charge more to sort them out, with Xero, your bookkeeping will be in good order, meaning we can lower your fees.

What are some other benefits of Cloud Accounting?

  1. It can be accessed anywhere. With Xero, you can safely and securely access your accounts data from anywhere. Gone are the days of having your information tied to a single computer. You can access Xero via your laptop, tablet, or smartphone.
  2. Get tasks done quicker and manage your time better. Xero can automatically handle time consuming work, from importing bank transaction to sending automatic invoice reminders.
  3. Track your business with ease. Xero allows businesses to track their finances instantly. Xero can also generate statistics and graphs based on your cashflow and outgoings.
  4. Be more cost effective. Most cloud accounting packages offer different tiers so you can find the one best suited for your needs and business size and this means that you only pay for what you need to.  
  5. Pay your staff and your bills automatically. Cloud accounting software allows you to generate pay slips and pay bills instantly. Speed up your business and watch it be more efficiently.  
  6. Feel confident that your accounts are secure. Give access to the people inside your organisation who you want to be able to see your accounts. This is much more secure than having them a paper copy or storing them on an unencrypted USB or sending them via email. 
  7. Remove errors which prevent your business from growing. Cloud accounting can speed up receiving real-time information as well as remove manual data entry errors. You can focus on managing your business day to day.  
  8.  Get into your accountant’s good books. With cloud accounting software your accountant can automatically access your business’s up-to-date data to make sure it is compliant with HMRC. Speed up the process and be hassled less. A4G can help set up the software and give you a step-by-step demonstration on how it works.  

Cloud accounting has the ability to transform your financial trading by giving you the bigger picture of your trading. Plus if it used well, it will reduce your fees!

Want to make the switch to Cloud Accounting now? Get in touch with one of our Financial Trader specialists and we can book you a free demo of Xero to see what how it can benefit you as a financial trader.

Call 01474 853 856 or email enquiries@accountantsfortraders.co.uk.