As a business in the 21st century you are up against constant pressure to operate efficiently and competitively, and technology advancements like the cloud have made it achievable. With 48% of SME’s set to increase spending on cloud services this year, we take a look at 7 reasons why you should consider moving your accounting practices to the cloud.
Believe it or not, accessing data in the cloud is far safer than accessing your data on premise. Cloud server providers invest in the strictest physical and digital security processes, more than any business can usually afford in house. Plus, by accessing data online you’re eliminating the risk of storing sensitive information on your device which becomes open to all if it’s lost or stolen.
One of the biggest benefits of cloud is the flexibility it brings. You are no longer tied to your desk and can access your data wherever you are at the click of a button, as long as you have an internet connection. This is ideal for businesses that are constantly on the go.
3. Cost savings
Moving to the cloud can actually bring you cost savings as you don’t need to pay large fees upfront for software, or pay for users that you don’t know if you’ll need a year or so down the line. Cloud based software is scalable and can easily be upgraded as and when you need. Software and security upgrades can also be managed easily by the server provider so you don’t need to experience lengthy downtime or the inconvenience of running them yourself. Plus you no longer need your own in-house servers which could save you thousands.
4. Routine back-ups
Back-ups are done routinely as a matter of course, reducing your risk of data loss from human errors and system failures. Plus, it’s a big job that is passed over to someone else, freeing up your time so you can focus on running your business.
5. Real-time information
To run your business efficiently it’s important you have accurate information at your fingertips when you need it. Cloud technology gives you just that, real-time information at the click of a button so you can make smarter business decisions, even when you’re away from your desk.
5. Keep up with the competition
The market is changing at a fast pace and if you don’t move with the times then your competitors will. Can you afford not to adopt cloud based accounting software?
5. Free up your hard-drive
With cloud technology everything is stored online so you don’t actually need to install software onto your system, freeing up space on your systems for everything else you need to run your business.
These advantages are some of the many reasons why 48% of SME’s are looking to increase spending on cloud based accounting software this year. If your business is looking to increase productivity, efficiency and flexibility then a move to cloud based software could be what you need.
Replacing an on-premise solution with the cloud removes a host of associated direct and indirect costs with a simple, single monthly subscription fee. When comparing ongoing on-premise against cloud, they can look comparable at first but the real savings are from looking at your indirect costs as well which include.
The 2016/17 payroll year end ends on 5 April 2017 which means it’s almost time to process your year end, a busy time for any business running a payroll. The introduction of RTI back in 2013 made the process much simpler, but it can still be an understandably daunting task for some. Here at Pegasus we’re with you every step of the way to help things run smoothly, so let’s go through the key steps and dates for your diary.
Send your final FPS and/or EPS by 5th April 2017
You should send your final Full Payment Submission (FPS) on or before your employees last payday before the tax year ends on 5th April. If you don’t send your FPS by 5th April 2017 it’ll be classed as a late submission but HMRC will actually accept them until 19th April 2017. After this date they’ll no longer be accepted and you will need to send an Earlier Year Update submission (EYU) instead which highlights the difference between your last submitted report and the final figures for the 2016/17 tax year.If you need to send an Employer Payment Summary (EPS) then you should send this by the 19th April 2017. If you make submissions after this date you may be charged a penalty of £100 per 50 employees for each month your report is late.
Update employee records to transfer payroll into new tax year – as soon as possible
A large, but essential, task is updating the payroll records for every employee working for you on or before 6 April 2017 (throughout the tax year), regardless of how much you pay them or whether they have now left the business. You’ll need to prepare a payroll record, identify the correct tax code to use for them in the new tax year and enter it into your payroll software. The tax code increases are as follows for the 2017/18 tax year commencing 6th April 2017:
HMRC may send you tax code notices for individual employees. If this happens then you should overrule the standard increase values.
For new employees, use the information provided on their P60 from their previous employer.
For employees who pay Scottish rate of Income Tax, make sure they are set as being a Scottish taxpayer.
Update your payroll software – as soon as possible
It’s important to update your software so you’re using the new rates and thresholds for the new tax year on 6 April 2017.For Opera 3 the updated software also includes a new advanced payments and deductions list that can assist with gender pay gap reporting.. If you’re using a Pegasus payroll solution it’s easy, and your fully trained Pegasus partner can guide you on this.
Give your employees a P60 by 31st May 2017
A P60 outlines everything you have paid your employees throughout the tax year, along with any deductions, and should be given to every employee by 31st May 2017.
Report expenses and benefits by 6th July 2017
If you’ve paid employees any expenses through your payroll then you’ll need to tell HMRC about these via a P11D submission. The P11D will show HMRC how much Class 1A National Insurance you owe – which must be paid by 22nd July 2017. Take a look at the Pegasus P11D Organiser for help with this.
For further advice on running your payroll year end take a look at the guidance information on the HMRC website or call the o-a-sys team on 01233 812050.
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