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5 Key Benefits of Accounting Software when Self Employed
As a self-employed person or small business owner, sing a spreadsheet to manage your accounting may once have sufficed in the initial stages of running your business.
But as your company grows, the following occurs: your financial data becomes increasingly complex, you're adding on new accounts and you may be bringing on additional staff. You now require a scalable solution-and you're wondering if it's time to transition from spreadsheets to accounting software.
If you're still on the fence, and unclear about the value that an accounting software brings to your business, here are five key benefits you'll reap if you make the switch:
Best contractor accounting software
Software can go a long way in assisting businesses and accountants alike. Often an accountant will have a preferred software that they use which could be something bespoke they have developed themselves or something they love and trust off of the shelves.
Our accountants at Forma have tried and tested many different solutions with FreeAgent being the clear winner in the contractor accounting tool.
When do you need accounting software?
In the early stages of starting up your company, managing your accounts via spreadsheets may suffice.
But as your business grows, you may find yourself spending an inordinate amount of time on getting your business finances and accounts sorted out.
Perhaps you're not entirely sure if you should stick with our current practices-or seek out a new way to handle your accounting.
We'll explore this in our article below, where we dive into five signs that indicate it's time for small business owners to make the switch:
What banks does FreeAgent integrate with?
Presently, FreeAgent supports over 40 feeds from banks worldwide. You may refer to their resource to see which banks are listed, or search for your bank using the search tool in the Banking area of FreeAgent.
Moving to the Cloud: Excel to Accounting Software
With the rollout of Making Tax Digital (MTD) in April 2019, it has become mandatory for all VAT-registered businesses to keep their financial records in digital format, and submit their VAT returns using MTD-compatible software.
While you can continue to use spreadsheets for your business records, you'll need bridging software to make them MTD-compatible. Here's a quick explanation of the term: bridging software is a tool that takes data from your spreadsheet, and "translates" the information digital in the correct format to HMRC's system.
Perhaps it's time to look into online accounting solutions that can manage your VAT processes within a single system.