As a result of the changes to company law arising from the implementation of the EU Accounting Directive, it has been necessary to make amendments to the UK accounting standards to ensure consistency between the revised legal frameworks and the financial reporting framework. This has provided the FRC a few additional opportunity to think about the most appropriate way. This will help the accounting standards support the new micro-entities regime. The changes to company law predominantly affect the small companies regime; however other minor amendments affect other aspects of UK accounting standards. Due to the changes to the UK Financial Reporting Standards (FRS), the businesses of UK will see changes to the accounting practice, used to prepare financial statements. In particular, many UK businesses will be required to apply one of the EU- endorsed IFRS, FRS 101, FRS 102 or FRS105.
IFRS- Publicly listed companies use this to prepare their accounts.
FRS101- Deals with Reduced Disclosure Framework.
FRS102- Includes Small entities regime and reduces disclosure for subsidiaries and ultimate parents.
FRS105- Deals with micro entities regime.
Accounts is a crucial part of any business be it new or old. So when you run a business you need to identify the KPIs (key performance indicators) you should be monitoring and cloud accounting helps you do that with ease. The easy access nature of cloud accounting proves to be very handy. As a business owner you are probably using smartphone or tablet to monitor certain aspects of your business. Now with cloud accounting use any device with internet connection to monitor the accounting activities. It gives you the opportunity to see the entire bank feed, sales data and invoices all at the same place, any time anywhere.
Cloud accounting is really gathering strength in the UK with every passing year as more and more businesses are getting involved. To fit the new accounting changes in the UK, cloud accounting farms are upgrading their services to give you an uninterrupted transition into the new accounting changes. Cloud accounting farm like INCLOUD ACCOUNTING is offering services like, tax return, business analytic and assessment, business advice etc. apart from accounting. So if you are looking for a cloud accountants UK consider INCLOUD ACCOUNTING.
Apart from the easy access nature, cloud accounting has other benefits too. Firstly, the biggest benefit of this medium is its security. It stores all the data in servers and they are encrypted and password protected. Also it leaves no trace of financial information on company computers so information breach is not possible.
Cloud accounting also proves to be a budget friendly option for not only small businesses and start-ups but also for the big businesses. At the beginning this method doesn’t require any expensive hardware and you don’t have to hire an IT professional to maintain it because this method is user friendly. Also, cloud accounting stores all the information in multiple servers that are located in different places. This ensures if anything happens to one server your data is safe in other servers and still accessible.
Cloud accounting has truly revolutionized the accounting system all over the world. With all its benefits and the way it has tackled the accounting changes in the UK, it’s quite clear why this is the future.