Bookkeeping Accounting Software

By law, you need to keep accurate records for every business structure. If you’re VAT registered, the rules state that you have to keep digital records and limited companies have their own set of regulations.

For sole traders and partnerships,bookkeeping rules are slightly less restrictive in how you maintain your financial records.

‘Doing the books’ is rarely anyone’s favourite job. Using appropriate bookkeeping software helps you save time by automatically managing accounting tasks as you go. Instead of having to schedule that dreaded day in your diary. Here’s how…

Bookkeeping Software invoicing

Bookkeeping software enables you to send customised, branded invoices in a couple of clicks. You can set them up to have automatic reminders, instead of wasting your time chasing them with calls or emails. These can be standalone invoices or recurring payment invoices.

You can also track your business payments and manage inventory through the same software. As these are designed to integrate with your bank and other payment systems, you can always see your cashflow in real time.

Bookkeeping Software and business expenses

Your bookkeeping software will help reduce the time spent on data entry and decrease the amount of human error involved. You can snap and save paperdocuments straight into the right file: expense, bill, or purchase order.

This autoscan feature is great for reducing the number of expenses you miss through lost receipts because you can do it on the go.

You just put fuel in the van, photograph the receipt, don’t worry about it blowing out the door. It’s there, in your expenses file, synced and reconciled automatically.

Bookkeeping Software and financial reporting

From your bookkeeping software dashboard, you’ll be able to get a full picture of your business’s financial health in real time. And that’s not just your cash flow.

The most useful software comes with the ability to produce reports like profit and loss, and balance statements. These are especially handy at tax time, although they give you sound information to make successful business decisions at any time.

Bookkeeping Software and admin efficiency

A cloud based bookkeeping software option means:

  • Simplicity: Everything is all in one place.
  • Safety: Security is built in and updated regularly.
  • Flexibility: You can access your account from any device, in any location – you just need an internet connection.
  • Collaboration: You can enable access for others, at different levels that are appropriate to their role. For example, your accountant, employees, or other accounting managers.
  • Scalability: Bookkeeping software providers usually offer various packages that align with the size of your company – rangingfrom a basic plan with a maximum of 10 invoices per month, all the way up to the fully customisable packages necessary for large companies. This means you’ve got the potential to scale up your bookkeeping software to match your business growth.

Usually your bookkeeping software will also have the functionality to track other expenses like mileage, inventory and some have time tracking as an option.

HMRC compliance and bookkeeping

Accurate financial records are an essential part of running a successful business. They’re also a legal requirement that HMRC determine. For example, at the most basic level for self employed business owners:

You’ll need to keep records of:

  • All sales and income.
  • All business expenses.
  • VAT records if you’re registered for VAT.
  • PAYE records if you employ people.
  • Records about your personal income.
  • Your grants, if you claimed through the Self-Employment Income Support Scheme – check how much you were paid if you made a claim.

That’s a lot to manage without a dedicated accountancy department, even if you only employ a couple of people. Especially when you then add in your personal self assessment requirements.

As the roll out of HMRC’s Making Tax Digital (MTD) continues, the current requirements to have digital records and file online will eventually extend to sole traders and individuals.

Working with bookkeeping software now puts you in a comfortable position when that comes round. Take a look at HMRC’s list of compatible software to find those most likely to include updates as the regulations change.

HMRC currently publishes lists for MTD for VAT and MTD for income tax. It’s worth noting that this isn’t an endorsement by HMRC. They aren’t recommending these particular bookkeeping software providers.

But they are saying that the ones listed are compatible with HRMC portals that allow you to meet your record keeping and filing requirements.

The main benefit of bookkeeping software is that you can spend less time with your head in your books and back in your business.

The automation of so many micro tasks makes your financial processes so much more efficient and less time consuming. Isn’t it about time you started feeling the benefit?

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