Tax is becoming digital. There’s no getting around it, whether you’re a freelancer or global corporation.
Making Tax Digital is doing exactly what it says on the tin, it’s transforming the way we communicate with HMRC and file our accounts.
Whilst we can still submit our details on paper at the moment, it’s only a matter of years before tax becomes fully digital.
Making the switch early can seriously save you stress in the future.
On top of this, using an online accounting system can bring you and your business a number of benefits, from saving time to ensuring your data stays protected.
Today, we’ve outlined the advantages of digital accounting.
Everything’s in one place.
By going digital, you can enjoy a more streamlined bookkeeping system. Creating an efficient paper method can take hours to put together and dare we mention the time it sometimes takes to retrieve specific pieces of information.
Using online accounting software means that everything is stored in one place, rather than in several dusty folders on a bookshelf.
Expenses can be tracked, finances can be analysed, cash flow can be checked and invoices traced when you switch to paperless.
This is great news for small businesses, startups, freelancers and anyone else who works on-the-go. We’re looking at you, coffee shop regulars!
More time to spend on what matters.
And, of course, a smooth bookkeeping system also means increased productivity.
Once the initial set up is over, a digital accounting tool provides you with a faster way to manage your finances.
Long gone are the days of sifting through your records, instead, simply input and extract data for reports within a few minutes.
This can reduce the costs of employing a bookkeeper. Meanwhile, if you manage your finances on your own, you can focus on other parts of your business with this new free time.
Whilst you may prefer to stick with your current paper filing system, it’s no secret that transferring financial and sensitive information to a secure, encrypted software can prevent your data being lost, damaged or stolen.
Even if you keep your files under lock-and-key, they could still be destroyed in a fire or burglary.
Switching to digital and carrying out regular backups ensures the information is stored securely and reduces your risk of a data breach or files being misplaced.
When shifting to accounting software, businesses can look forward to more accurate reports, using real-time financial information.
Many of these tools link directly to your business current account, so you can review transactions on the go and see precisely what is coming in and out to the exact penny.
Access everything at the touch of a button.
The key reason that we love digital solutions is the fact that you always have the information at your fingertips.
This is super useful whether you’re a Sole Trader, own a large corporation or outsource your accounting to a professional.
Again, everything you need is in one place, so you can pull up any data you require within seconds and share it with those who need to access it.
Majority of these platforms have a mobile-friendly app that can be downloaded onto your phone or tablet. This means you can log in when you’re out and about and aren’t restrained to your office when you need to manage your finances.
This is particularly handy when tracking expenses. Most software allows you to snap receipts with your phone camera and store them alongside transactions.
If you would like to know more about online accounting software or need a hand getting started, please get in touch with us today.