In the technological world we now live, our expectations of communication and connectibility have increased signifiacntly. As you know, there are very few things that we are unable to access from anywhere in the world. All we need is a wi-fi connection and a mobile phone, tablet or laptop.
The benefits of using online accounting software
Cloud accounting has been around a while. If you are not familiar with the term, “cloud accounting” refers to an online accounting programme that keeps track of your business income and expenses, whilst interacting with your bank transactions.
There are many benefits of using a cloud-based approach to your tax affairs.
Time is money
One of the key benefits of cloud accounting is that it saves time, which in turn saves money, as your time is both valuable and chargeable.
Firstly, the online accounting software links directly to your business bank account/s, drawing in the data and saving hours of time in the initial data-entry.
Secondly, the intuitive programming means a cloud accounting system remembers how you analyse certain costs. When they come through your bank regularly, the software already knows how to allocate them. Therefore, depending on the diversity of your expenses, eventually there may be very little allocation needed.
No accounting experience required
The nature of online accounting software is that the day-to-day management requires absolutely no accounting experience.
It is not important to know debits from credits, like other more complex systems. Much of the work is carried out through the data links, but reconciliations can take a matter of minutes to complete too.
Saving resources means saving money, as your accountancy bills can be kept to a minimum by doing some of the leg-work yourself.
Manage your finances from anywhere
Long gone are the days where work is carried out between 9am and 5pm and always in the office.
Specifically for freelancers and contractors, work can be at the client’s premises, at your home or whilst travelling.
Mobile Internet connection allows work to be much more flexible, and cloud accounting allows you to take that flexibility with you, wherever you may be working.
Even taking advantage of spare minutes you may have during the day, on the train or in the queue at the supermarket. If you have your mobile phone, you will be able to quickly check-in on your business performance.
Don’t miss tax relief
Typically contractors and freelancers miss out on tax relief because time lapses between a transaction and when you come to update your bookkeeping records.
For example, you forget about the few things you paid with your personal cash, or you can’t remember what a specific receipt is for so you have to discount it.
With cloud software applications it is possible to take a photo of your receipt and upload them instantly to your account.This ensures you don’t miss out on tax relief and you can keep all your records safely stored in the cloud.
Collaborate with your accountant anytime
By using online accounting software, it is possible for your accountant to log into your account and fix any errors that arise. They can also give you up-to-date tax and VAT advice based on real-time information.
This means that you can feel reassured that there is always help on hand.
See information in real-time
Using a cloud-based system that links to your bank account means that it is possible to see your Profit & Loss, your Debtors and Creditors and an estimate of your tax bill, at the click of a button.
Of course, the system is only as up-to-date as the information stored within.
However, if you allocate even as little as an hour a month, you have access to the very latest information about your business, your finances and your tax.
Free Accounting Software
AJN Accountants offer free accounting software as part of our service.
We also show you how to use the accounting software, and we are availabe to help if you need assistance throughout the month too.
Once a quarter we will review your accounting software to ensure you are aware of tax planning opportunities. Regular reviews also ensure that you keep on top of routine filing requirements.