Why Accounting Software?

Running a successful business requires much more than just providing products or services that are required in your chosen markets. Success is about control and governance over your business finances.

Almost one third of businesses fail through lack of cash management.

Whether you are a start-up business or an established large multi-national, accounting software is a vital component to creating a sustainable business.

There are also legal requirements placed on business owners to keep adequate accounting records, this is to ensure the correct amount of VAT and tax is paid to the authorities. Accounting software provides the link from your business activities to the accounting records through to VAT and tax payments, enabling business owners to answer any questions coming from HMRC.

Accounting software reduces the time and effort that business owners need to spend producing detailed records. Digital demands also mean that keeping records manually is no longer viable. The recent HMRC initiative ‘Making Tax Digital’ requires all businesses subject to VAT to submit VAT electronically, accounting software will do the submission for you.

Accounting software provides the framework to manage your business through:

  • providing control over business finances.
  • saving time and money, taking advantage of automated processes within modern accounting software.
  • reducing the time required by accountants (and therefore their costs), therefore providing more money for business activities.
  • increasing accuracy of accounting records, which also means an increased likelihood of business success.
  • enabling business owners to make business decisions based on a sound financial position.

Accounting software provides the tool kit for everyday business activities:

  • sales & issuing invoices.
  • costs & managing invoices received.
  • staff out of pocket expense management
  • timesheets (important for service businesses)
  • bank account management
  • bank account reconciliation (accounting records to money in / out of bank account)
  • payroll
  • VAT calculation & submission to HMRC
  • corporation tax (if limited company)
  • PAYE
  • construction Industry Scheme payments
  • reporting (for annual filings)

Cloud accounting software provides a common place for business owners, accountants and auditors who require access to business accounting records.

Having your own accounting software enables the business to shop around for an accountant, letting the business get the best deal and reducing the cost of accountant services.

Accounting software makes it easier for your business to grow. The effort of maintaining accounting records can easily be shared with new employees and enables owners to reduce their effort in managing accounting records.

As the business grows owners can focus on employees, customers, products and services as the accounting software provides the management and control over the business finances.

Accounting software is a critical enabler for business success.

If you don’t have an accountant yet and need some advice, contact our expert* Sophie from 360 Chartered Accountants on 01924 950954 or at sophie@360accountants.co.uk.

*We’ve picked experts we know and trust who are good at what they do. All of them will give you at least an extra 30 minutes free advice if you contact them and would then charge their normal prices. They don’t pay to be on BuBul and don’t give us any money from anything they earn as an expert.