ParkerBD

Great Financial Ideas Newsletter - September 2011

You are receiving this message because you are registered on our database as a client or contact. If you no longer wish to receive information from Parker Chartered Accountants + Financial Advisors you can unsubscribe at any time.

Dear [FIRSTNAME]

It may sound futuristic but in fact web based accounting , in the cloud, is now a reality for many small and medium sized businesses around the world. For many it allows them to delegate a non-core activity and reap the full benefits of outsourcing. Yet, I’ve been surprised how few local businesses in Birmingham have embraced the major advantages offered by ‘the cloud’.

Over my twenty odd years in the accountancy profession I’ve been searching for a solution to an age old problem and I think putting your accounts in the cloud is the solution.

Let me explain.

The main tool of our trade, as accountants, is the financial information provided in a company’s accounts. The problem is that this financial information is very often inaccurate and provided too late to allow us to use it to advise business owners.

Inaccuracies creep in when data processing errors are made by client staff, through lack of knowledge or training, and businesses end up paying their accountants to correct these book-keeping errors rather than focusing on the advice needed to improve the position of the business.

For most small and medium sized businesses, without an experienced finance manager in house, financial information, in the form of management accounts, is produced and reviewed quarterly at best. The result? You’re always looking over your shoulder, at the past, when trying to make decisions about where to go in the future.

When I first came across online accounting, in the form of Xero Accounts , I have to admit to being a little sceptical. Why use a web based application? How would it benefit my clients?

I soon realised cloud accounting, in fact any software that’s accessible via an internet connection, can help revolutionise the way a company does business. And it also provides a solution to my age old accountant’s dilemma. Now I can help clients by spotting data processing errors sooner and provide on the spot advice and training to prevent such errors reoccurring. The online access to real time data means advice is based on up-to-the minute information, about what’s happening in the business now, not what happened 3, 6 or 9 months ago. I can add real instant value to a client, rather than being seen as a necessary evil.

The added beauty of cloud accounting is how cost effective it is. In most cases there are no up-front cost for the software, in the case of our Xero Account Service a monthly fixed fee covers online access to the software for an unlimited number of users, full accountancy support plus year end statutory accounts filing and tax.

As you’ve probably gathered I turned from ‘cloud’ sceptic to advocate pretty quickly and when you see what’s possible with the kind of accounts software that’s available in the cloud I think you will too.

Andy Parker
Chartered Accountant Birmingham


Share your experiences
Add your own comments to any of the blogs that really strike a chord via the Parker website.
There is no doubt that big movements in stock markets (volatility) make investors nervous. At times like this it is as well to return to first principles so I thought it would be useful to look at what the present lurches in world markets mean in a rational way. Read more...
Since the Finance Act receiving Royal Ascent on 19th July 2011 there’s been something of a rush in some quarters to check the effects on tax planning advice and tax planning schemes. Luckily the two leading UK providers of tax planning services that we work with were well ahead of the game and we’re able to talk with confidence to clients about our current tax planning options. Read more...
Of course for many SMEs and family owned businesses it’s not just the tasks that they don’t like that can be outsourced, it’s non-core activities, those that add limited value or require specialist expertise. But what benefits could your business realise from outsourcing non-core activities? Read more...
 
For advice on all accountancy and financial issues contact Parker Chartered Accountants and Financial Advisors on 0121 704 1354.


Regards

Andy Parker
Parker Chartered Accountants + Financial Advisors

If you wish to unsubscribe from this email please click here