Exploring the Impact of Cloud Accounting on Tax Compliance
Despite the popularity of cloud accounting tools in the corporate industry, there are still a lot of novice business owners in the UK who are yet to shift their business accounting to the cloud. Mostly, these entrepreneurs hesitate to move their business finances to the cloud because of their notions that these online tools are not really necessary for their business. However, is it really wise for your SME to keep off cloud accounting?
1. It keeps your books in order.
The fact is, aside from helping you keep tabs on your business finances, cloud accounting tools can also assist you in tax compliance. Here’s how:
Whether you are using Xero, QuickBooks or MYOB, the distinct similarity is that all of these cloud accounting programs help you keep your books in order. This means you can easily manage receipts, invoices, and have a clear picture of your revenues, which is important when lodging your taxes.
2. It automatically generates financial reports.
The process of lodging your taxes requires financial statements. While these financial statements can be prepared manually, using cloud accounting tools can help you get these reports in one go. Can you imagine how convenient it is to lodge your returns when you can automatically generate financial reports through the cloud? This is another great reason to shift to the cloud.
3. It keeps your financial information available anytime, anywhere.
Lodging your returns and reporting your revenues to the tax office is admittedly a very tedious process. The good news is, cloud accounting can help improve the process for you. These online tools keep pertinent financial information available 24/7 so you can check the status of your business finances anytime you want to.
4. It makes collaboration easier.
Business owners who discuss their cash flow with their accountants struggle with the collaboration. But through the help of cloud accounting, you can easily share reports and other important financial information with your accountant. This significantly helps you with tax compliance come tax season.
Paying your taxes is an important business and civil obligation. Wouldn’t you want to speed up the process of your tax payments by just using a modern accounting platform such as the cloud?