Streamline the Accounts of Your Small Business

The time spent on administration can quickly build up into a number of hours when dealing with the accounts of your small business, especially if you have not had any formal training and are not 100% clear on the best practices for each area, such as VAT returns, end-of-year and invoicing. Everything has to be recorded and all receipts and expenses need to be proved, which can be hard if it's just you.

Fortunately, at least until you're in a position to employ an accountant or a team of trained finance staff, there is specific software to help you. Sage One Accounts is one such example, and at a low monthly cost the software can effectively support a start-up company or business. However, accuracy is still needed and it is advisable to use an accountant to check things over, but where can software help your business?

Organise Incomings and Outgoings

The key things that HMRC will be looking for at the end of the year when you send in your tax return are the incomings and outgoings. All sales and invoices are easily recorded on the accounting software, with the program able to produce detailed reports for the tax man. Anything that you spend and are claiming as tax-exempt expenses can also be easily entered into the system, with the program calculating everything you have entered and preparing a tax return for you. Naturally, at this point you should get an accountant to take a look before you submit, but his/her job should now be much easier.

Quicker Payments

Some software, Sage One Accounts being one example, allows customers to pay their invoices upon receipt in their emails. Quicker payments mean less effort chasing up invoices, which in turn leads to far tidier accounts. When a customer uses the pay button on the invoice which the program generates, that specific account can be wrapped up and put aside until your service is needed again, ready for HMRC to check whenever they choose.

Reporting

When calculating your accounts by hand and via a spreadsheet, knowing what exactly to add up in order to work out your balance sheet can be difficult. With online accounting software, there are a number of reports ready at the click of your finger. You can get details of your expenses and a full monthly or end-of-year one to neatly summarise for your accountant, bank manager or customs.

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