Form submitted!
Thank you for getting in touch. A member from our friendly team will aim to get back to you shortly.
All the best,
The SK Accountants team
Cloud-powered accounting: Advancing beyond traditional cloud accounting systems
In modern businesses, cloud accounting has now become the norm rather than the exception.
With real-time access to financial data, enhanced security, and a variety of other digital features, cloud accounting has transformed the way businesses manage their finances.
However, businesses could take this one step further and introduce cloud-powered accounting.
What is cloud-powered accounting?
At its core, cloud-powered accounting leverages not just the cloud but also technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Big Data analytics, an accounting process which focuses on analysing large amounts of data.
By incorporating these advancements, cloud-powered accounting systems go beyond basic automation to offer predictive analytics, intelligent insights, and seamless integration with other business applications.
Enhanced automation
While traditional cloud accounting provides a certain level of automation like invoice generation and basic expense tracking, cloud-powered accounting goes further.
It can automatically categorise transactions, reconcile accounts, and even suggest tax-saving strategies based on past data and predictive algorithms, thus reducing the margin for error.
Intelligent insights
Cloud accounting systems provide you with real-time data, but cloud-powered accounting goes beyond this by offering intelligent insights.
It analyses your financial data to suggest ways to improve cash flow, optimise expenses, and increase profitability. For instance, it can forecast revenue for the upcoming quarter based on past trends, providing valuable information for business planning.
Improved security
Although both cloud and cloud-powered accounting systems offer enhanced security features like data encryption and multi-factor authentication, cloud-powered accounting can take security higher by using AI to detect fraudulent activities and inconsistencies, thereby providing an extra layer of security.
Seamless integration
Cloud-powered accounting systems are designed to easily integrate with other advanced business software solutions, from Customer Relationship Management (CRM) tools to supply chain management platforms. This makes it easier for businesses to have a unified and streamlined operation.
Future-proofing your business
Technology is ever-changing, and for businesses to stay competitive, they need to evolve.
Cloud-powered accounting is scalable, adaptable, and ready for future technological advancements.
As your business grows or changes, your cloud-powered accounting system can easily adapt to new requirements, whether they are regulatory changes or new financial reporting standards.
Cloud-powered accounting and Making Tax Digital
The UK Government’s initiative, Making Tax Digital (MTD), has been a pivotal factor in encouraging the adoption of modern accounting systems, including cloud-powered accounting.
If your business is registered for VAT, you should already be familiar with MTD and the use of cloud accounting software to file your VAT returns.
But if you are self-employed or a landlord, you may not have considered using cloud-based software yet.
You can also use MTD for Income Tax Self-Assessment (ITSA). Under this framework, you can maintain digital records and submit quarterly updates to HMRC, besides the annual tax return.
Cloud-powered accounting systems are aligned with the objectives of MTD, offering seamless digital record-keeping and effortless submission of returns. These platforms can automatically pull transaction data from various sources, categorise them correctly for tax purposes, and facilitate easy, timely reporting.
This makes cloud-powered accounting not just a convenient option but an increasingly necessary tool for compliance with regulatory changes in the UK’s taxation landscape.
To find out more about cloud-powered accounting for your business, contact us today.
Business 
Small business confidence dips ahead of new customs controls coming into force
Four in 10 exporters have reported a fall in international sales since the end of the Brexit transition period, a major study has revealed. According to the tracker, four in 10 – around 41 per cent of traders – have reported a “drop off” in international sales in the three months to September 2021.
Business
Compliance
HMRC asks sole traders to correctly report SEISS grants or “repay in full”
Sole traders who have not correctly reported their Self Employment Income Support Scheme (SEISS) grants may be forced to repay them in full, it has been warned.
Compliance
Economy
Small businesses call for Government support to tackle climate change
According to new research, many are addressing energy usage, increasing recycling and investing in microgeneration, but only a third of those have a formal plan to tackle climate change within their business.
Economy
Tax Planning
Almost 800,000 tax scams reported to HMRC in past 12 months, figures reveal
Nearly 800,000 tax-related scams were reported to HM Revenue & Customs (HMRC) in the past 12 months, a major study has revealed. According to the report, HMRC responded to 797,010 referrals of suspicious contact from the public in the last year. Around 358,000 of these involved scams where taxpayers were offered bogus tax rebates.
Tax Planning
