Internet Services Technology

Keep One Step Ahead By Preparing Early for the Tax Period Using Accounting Software

Your finances and your accounting capabilities are possibly the most critical processes in maintaining your company’s existence and profitability. If you’re the owner of a small or medium-sized business, then it’s likely that you have multiple responsibilities and unless you have an accountancy background, you most probably delegate that particular responsibility to an accountant.

However, this can cost substantial amounts of money and even the relatively straightforward process of managing receipts, transactions and payments can be a time-consuming one. Using easy accounting software puts you in control of your finances, saving you both time and money – two important factors in keeping your business working to optimum effect.

Stringent Guidelines

With the introduction of RTI and the increasingly stringent guidelines imposed by HMRC, the importance of accurate accounting is more crucial than ever before. If you want to avoid costly tax inspections or disputes between your company, its employees and even your clients, easy accounting software is a must-have tool for your office. Using these simple programs, you can increase your accuracy, improve the consistency of your information, reduce the potential for errors and maintain your company’s integrity.

Laws, such as BASEL II, have put finance and accountancy teams under increased pressure to minimise the risk of non-compliance and avoid severe penalties. Using accounting software, key activities such as reporting and analysis, data management, transaction tracking and auditing which need to conform to set regulatory standards are not only easier, but the efficiency with which they are carried out is significantly improved. Consequently, simple to use accounting software means that you can facilitate faster and more-effective compliance, removing the worry of expensive investigations.

Let Software take the Strain

accounting software for tax

While accountancy is important, it is also time consuming and puts incredible pressure on a finance department. Accounting software removes the burden of constant paperwork and repetitive manual tasks by automating them. As a result, with a software package running the show your finance team is more available to deal with short-term and immediate financial issues that may have some impact on your company.

Furthermore, accounting software gives you a complete overview into the financial behaviour of your company. This insight gives you the potential to plan in advance, managing your budget with more care, allowing you to predict where the hotspots in your client base are and even decide which areas of your business strategy need more careful marketing. Working out where your money is going and where it’s coming back from gives you greater decision-making power.

Occasionally, businesses feel the need to collaborate with other businesses, whether it’s tendering for a contractor going into a joint partnership. At times like this, transparent accounts are vital. Just as you want to know your collaborator’s potential, they will want to know yours. Easy accounting software allows you to share accurate information, swiftly and confidentially, so that you and your potential partners can make educated decisions as to whether that collaboration is a good idea or not.

While preparing for the tax year is a vital part of any business activity, there are many fringe-benefits supplied by embracing accounting software that’s easy to use, works within the confines of your business and keeps you on the right side of the tax laws too.