Category: Cloud Software

7 Benefits of Coworking Spaces for Online Businesses

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Coworking spaces are becoming more and more popular as the number of remote workers continues to grow. However, what many people don’t realize is that coworking spaces offer a lot of benefits for entire online businesses, too. Let’s take a look at seven reasons why online businesses should consider coworking.

#1 – Better Value for Money

Coworking spaces often represent better value for money than renting your own shared office for businesses that can function remotely for a large portion of the time.

In addition to this, coworking spaces offer amenities like printing and meeting rooms that are not included in many private office memberships, and you can simply pay for the hours you use.

There’s also less up-front investment with a co-working space.  You can usually start by paying for a day or week pass, which gives you the opportunity to test out the space before signing up for a longer-term membership.

#2 – Community and Collaboration

In addition, coworking spaces offer a sense of community and collaboration that you don’t get when working from home. 

This can be extremely beneficial for online businesses who are looking to connect with other professionals and exchange ideas. 

Studies show that working from home has a negative impact on innovation across teams, so coworking spaces can be a great way to encourage creative thinking.

#3 – Scalability

Coworking spaces offer flexible month-to-month contracts, meaning that they can grow and shrink with your business. 

If you only need an extra desk for a month while you’re launching a new product, no problem. 

If your team is growing rapidly and you need more space, then you can scale up easily. 

Finally, if the time does come to move into a more permanent space, you won’t have to wait out a months-long contract beforehand.

#4 – Flexibility

In the wake of the pandemic, many businesses are adopting hybrid working, which is a mix of remote and in-office work. Coworking spaces are perfect for this style of working, because you can simply pay for the hours that you need the space. This means that you don’t end up renting an office that you’re only using for two or three days per week. 

#5 – A Better Work-Life Balance

One big downside of working from home is that it can make employees feel as though there’s no separation between work and personal life. This represents a major challenge for businesses that want to maintain a healthy work-life balance and keep morale high. However, coworking spaces can help because they allow employees to separate work and home life. 

#6 – An Attractive Workspace

Coworking spaces tend to be modern and carefully designed for optimum productivity.  This can be a major draw for online businesses who want their employees to feel inspired and motivated. 

At a coworking space, you get to access a beautiful office without forking out for expensive furniture and an interior designer.

#7 – Networking Opportunities

Many coworking spaces offer unique programming and events that can help connect with other professionals in your industry.  

There are often workshops and masterminds available, as well as social gatherings such as happy hours and dinners. This can be a great way to expand your network, get new ideas, and learn from others in your field.

Summary

If you’re an online business looking for a better way to work, then coworking spaces should definitely be on your radar. They offer many benefits that are perfect for remote workers and businesses of all sizes, and you can scale your usage as you grow. Much as businesses are replacing expensive hardware with cloud software subscriptions, many are also now opting for co-working spaces as an alternative to traditional offices.

5 Myths About Making Tax Digital Busted

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The UK government’s plans to make tax digital have been shrouded in controversy since they were first announced. There has been a lot of misinformation floating around, and many people are unsure about what the changes will mean for them. In this blog post, we will dispel some of the myths about making tax digital and give you the facts.

What’s Happening?

The Making Tax Digital (MTD) scheme rolled out in 2019 for VAT-registered businesses with over £85,000 in taxable income. In April 2024, this threshold will be reduced to £10,000.

There are many benefits to MTD, but many business owners are apprehensive about the change, fearing it will mean more stress, fear and penalties. Let’s take a look at some of the incorrect assumptions about MTD and talk about what the truth is instead…

#1 – HMRC Will See All of Your Data

This is a common misconception about MTD. The scheme does require quarterly updates but the amount of data you reveal to HMRC remains the same. With your VAT return, for example, you will still fill in the same nine fields of information but you will simply do it digitally.

Quarterly updates will actually encourage business owners to stay on top of their finances and give them a better insight into their cash flow.

#2 – You Will Pay More Tax

MTD is not about creating a heftier tax bill; it’s about reducing errors and fraud.  When businesses are able to submit accurate tax returns more quickly and easily, it minimises the chances of mistakes being made. This means that you are likely to pay the right amount of tax – no more, no less.

In addition, MTD will help to reduce the administrative burden on business owners, so everyone can focus on more important things.

#3 – Tax Returns Will Take Forever to Complete

This is another common misconception about MTD. The reality is that tax returns will take the same amount of time to complete – or quite possibly less. The main difference is that you will be doing them digitally instead of on paper. You won’t have to spend hours poring over your accounts – the software does all of the hard work for you.

This also means that there is less opportunity for human error, meaning your tax return will be more accurate.

#4 – MTD Means No More Tax Returns

MTD involves quarterly updates but this doesn’t mean that you won’t have to complete tax returns anymore.

The quarterly updates are in addition to your annual tax return – they are not a replacement for it. The SA100 form will be replaced with a final declaration, which HMRC will then review.

#5 – Small Businesses Don’t Need to Worry About MTD

Currently, businesses with a taxable income of under £85,000 per year are not required to participate in MTD, but this will change as the 2024-2025 tax year commences. This may seem far off now, but it’s best to take steps to prepare for the change now.

The truth is that all businesses need to be prepared for MTD, even if they don’t have to start complying with it until later on.

The sooner you start getting ready, the smoother the transition will be. This means it’s a good idea to begin digitising your accounting process and using MTD-compliant software so that you’re ahead of the game when 2024 rolls around.

Summary

There are a lot of misconceptions about Making Tax Digital, but the truth is that the scheme has many benefits. It reduces the chances of mistakes and fraud, and it makes tax returns easier to complete.

All businesses need to be prepared for MTD, even if they don’t have to start complying for another few years. The sooner you start getting ready, the smoother the transition will be.

7 Ways to Save Time and Money with Cloud Accounting Software

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Cloud accounting software is becoming more and more popular, with many companies deciding to switch over. This type of software can really speed up and streamline your processes and give you a greater insight into your finances. In this article, we’re going to look at some of the ways that cloud accounting software can save you time and money.

1) Automated Invoicing

Cloud accounting software enables you to automate much of your invoicing process.  This means you can get invoices out faster, which helps to improve your cash flow. You’ll also have a digital record of all the information on an invoice, so it’s easier to keep track of who has paid and who hasn’t. Furthermore, your software will be able to calculate and add late fees for you and send automatic reminders to clients who are yet to cough up.

2) Better Cash Flow  Management

Managing cash flow is a vital part of running any business, but it can be difficult when you’re only using spreadsheets. With cloud accounting software, you’ll have access to much better tools for monitoring and assessing your company’s financial health. You’ll also save time because the automated invoicing features mentioned above mean you won’t have to waste hours chasing late-paying clients.

3) Expense Tracking

Another time saving feature of cloud accounting software is expense tracking. This feature enables you to keep track of all your expenses and log them into the system automatically. You can then compare your budget against your actual spending at any time so that you can see where money has been spent or saved.

4) Centralised Information

One of the best things about cloud accounting software is that it gives you a centralised view on all your accounts.  This is really helpful, especially for companies who have branches in different cities or countries around the world. All this information will be available to employees wherever they are and whenever they need it, meaning everyone can work more efficiently and make fewer mistakes.

5) Real-Time Reporting 

Another great benefit of cloud accounting software is real-time reporting.  This means that you’ll be able to access your reports and information whenever you need it, so if something crops up or a decision needs to be made quickly, it’s right there at your fingertips. This enables you to make sage and snappy decisions about the future of your business. 

6) Accessibility

Another benefit of cloud accounting software is accessibility. Thanks to cloud technology, you’ll be able to access all your accounts wherever and whenever you need to. Most major cloud accounting providers have mobile apps that enable employees to log expenses or update information whilst on the go.

7) Cloud Security

Finally, cloud accounting software provides you with more security than traditional desktop software does. All of your data is encrypted and backed up regularly so if something happens to one version of a file, there are always back-ups available which can be restored in mere minutes. You’ll have peace of mind knowing that your important data is safe and secure. Data breaches can cost businesses thousands – or even millions – of dollars, so this is a real advantage.

Conclusion

There are numerous benefits of cloud accounting software, and they impact your entire business. This technology gives you greater financial visibility and thus empowers you to take well-informed steps towards a stronger and more profitable business. Whether your business is well-established or just getting started, it will definitely benefit from the use of cloud accounting software.

6 Reasons to Swap Spreadsheets for Cloud Accounting Software

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Many small business owners have been using spreadsheets to do their accounting for years now. Whilst spreadsheets may seem like a convenient and cost-effective way of managing your finances, advances in cloud accounting software mean that your business could most likely benefit from an upgrade. Let’s take a look at why you should swap your spreadsheets for cloud accounting software, and how to make the transition smoothly.

1. Data Entry

Not only is manual data entry mind-numbing, it also makes it very easy to make mistakes. Just one typo could lead to major errors, including mistakes on your tax return which may result in missed deductions or penalties. 

Cloud accounting software, however, allows you to upload your receipts and invoices directly and keep accurate records, removing the need for double data entry and reducing the likelihood of mistakes.

2. Lost Data 

The larger a spreadsheet becomes, the more likely it is to either crash or corrupt, resulting in lost data. However, your records don’t cease to matter once your tax return is filed. It’s important to keep your records for audits and to track the company’s progress over time. Leaving your data in a spreadsheet leaves it vulnerable, whereas cloud based accounting software provides multiple layers of protection to keep your information safe.

3. Integration

Spreadsheets don’t tend to integrate well which can lead to a lot of stress and wasted man hours. Saving a spreadsheet in a new location can corrupt files and break links, causing countless problems. However, cloud accounting software automatically syncs your data across a range of devices and is designed to integrate well with other software, permitting seamless sharing and collaboration.

4. Audit Trail 

Spreadsheets don’t create a clear audit trail in the same way that accounting software does. For example, you may see that something was changed but be unable to identify the exact details. It’s important to keep a step-by-step record to keep your company safe and your records accurate. Accounting software allows you to easily keep a log of all changes made to your files, dating right back to the moment they were initially created.

5. Time 

Spreadsheets tend to be much more time-consuming than cloud accounting software, especially if you’re working with a high volume of data. Using spreadsheets requires you to spend a lot of time on data entry, preparing reports and verifying information. This could cost you days’ worth of man hours! With cloud accounting software, on the other hand, these processes take mere minutes to complete.

6. Collaboration 

The sharing functionality of traditional spreadsheets tends to be slow and can become confusing when multiple people try to work on a document at once. Cloud accounting software is designed to be collaborative and, as mentioned previously, automatically syncs across all devices, permitting seamless sharing and creating an accurate audit trail.

How to Choose the Right Cloud Accounting Software

The right cloud accounting software for your small business will depend on your particular requirements, and it’s worth asking your accountant for recommendations. We recommend considering the following:

  • Which systems do you want to integrate the software with?
  • How many people will use the software?
  • Which functions are most important to your business? 
  • What is the upfront cost or subscription fee?
  • How much training is required?
  • What support is provided?
  • Is the software scalable as your business evolves?

Summary

If you’re still using spreadsheets for your small business accounting then it’s most definitely time for an upgrade. In fact, using spreadsheets is almost as outdated as working with pen and paper! Cloud accounting software can save you a huge amount of time and money, as well as protecting your data and maintaining more accurate records. For a relatively small investment, it offers a very large return.

The Most Dangerous Accounting Mistakes For Your Small Business

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Starting your own business is an amazing thing to do but it’s also notoriously risky. There’s a lot to think about when you first start out on your own and it can be tempting to put accounting on the back burner, but that would be a huge mistake. Good accounting is crucial to the financial health of your business and mistakes can be devastating, especially in the early days. It’s important to know which mistakes to avoid to ensure that your small business is around for years to come.

1. Bad Bookkeeping

New business owners are often overwhelmed and tend to neglect bookkeeping. However, it’s essential that you keep the books up to date and record all of your earnings and expenses. Without this data, you won’t have a clear picture of how you’re faring financially, which can lead to a myriad of nasty problems.

Meticulous bookkeeping allows you to spot trends, understand your spending and examine which practices generate the largest ROI. You can then leverage this data to improve the financial health of your business, maximise your profits and manage your cash flow. Staying on top of the books allows you to stay one step ahead and put out fires before they start.

2. Confusing Cash Flow and Income

The money you take isn’t the money you make.

£100,000 in revenue sounds great, but if you had to spend £30,000 on equipment, insurance and employees to make that money, you’re actually left with £70,000 profit. You’ll then have to pay tax on your gross profit, so the net amount will be smaller again.

It’s vital to know not only how much money is coming into your business, but how much is going out. Getting carried away with gross numbers is a common mistake that new business owners make, and it quickly lands them in hot water. It’s important to stay grounded in reality and know how much you’re really making so that you don’t overspend.

3. Using Outdated Practices

You’re a 21st century business and your accounting practices should reflect that. Online accounting and bookkeeping softwares are faster, easier and dramatically more efficient than ledgers and Excel spreadsheets.

Online accounting software is easy to learn and significantly reduces the margin of human error by automating processes and calculations for you. This means that you’re much less likely to make mistakes on your tax return. It also reduces the risk of making the wrong financial decisions due to inaccurate information.

With this type of software, you won’t have to spend hours updating and organising your financial information. Another benefit is that it allows you to locate and cross-reference information quickly and easily, without having to spend hours searching for the right files. It may be more expensive than the DIY approach initially, but using online software will save you many man hours.

4. DIY Accounting

Accounting is complicated; there’s a reason it takes accountants years to fully qualify. Trying to manage your accounts all by yourself is a surefire way to waste time and stress yourself out. Besides, without extensive financial knowledge it’s unlikely that you’ll be able to save a significant amount of money on your tax return. Furthermore, you’ll be heavily penalised for making even a minor mistake on your return which could cause financial problems for your business.

Trying to manage on your own is a drain on your resources so the sooner you seek professional help, the better. Investing in the services of an accountant is one of the best decisions you can make regarding the financial health of your small business.

Summary

It’s important to avoid the above accounting mistakes in order to set your business up for success. Neglecting or mismanaging your accounts can have serious consequences, so it’s best not to take any risks. Whilst it’s tempting to put accounting off until later, you need to make it a priority right from the very start. Good businesses and bad accounting just don’t go together.

LEAVE THE TYPEWRITER BEHIND AND SWITCH TO CLOUD SOFTWARE

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We recently had a meeting with a potential client whose current accountant is still using a typewriter to produce their accounts. This led us to write a blog on the reasons why it’s time to leave the typewriter behind and make the move to cloud software!

Here are our top five reasons to switch to cloud software:

  • They help you to grow your business

The software allows you to get a real-time figure of how your business is doing at any moment so that you can immediately see any problems that need to be fixed. The software can also be used to predict any future problems and create ‘what if’ scenarios so that you can decide on the best course of action to take.

  • Integrates with other software

The main accounting apps such as QuickBooks online and Xero integrate with several other apps to make your life a lot easier. This allows your business to run as smoothly as it can with little input from you.

  • You can access your data from anywhere

Cloud software has all of the same features as desktop software but it can be accessed from anywhere so you’re not stuck at your desk all of the time!

  • Less micromanagement

Cloud apps require a lot less micromanagement than desktop versions because they are more intuitive. They’re also much less complicated to use!

  • Huge variety

There are absolutely loads of apps available to choose from so there’s definitely something to suit every business.

If you’re not sure about which apps you should be using for your business or you’d like a hand with your current software, please feel free to contact us.