A survey recently carried out by YouGov among small businesses reveals that 25% of respondents couldn’t be bothered to claim an expense if it cost up to £5; a further 19% said they couldn’t be bothered to claim anything worth up to £10. Other reasons included losing or forgetting receipts, not wanting to face the work involved in adding them, and worrying that HMRC would challenge them. This all adds up … the treasury must be doing very nicely from unclaimed expenses.
Cloud-based accounting software support compliancy: It can protect you against accusations of non-compliancy; your records are there in real time ready to be scrutinised. Secondly, you will be less likely to lose receipts, because they can be uploaded via any device, smart phone, tablet, and computer, to the system. A legitimate expense is legitimate, regardless the size of the receipt. Thus, online accountancy software will help you gain this sort of objective disciplined approach to recording expenses, easily and efficiently.
An accurate record of all expenses and all the income in real time gives businesses control and power. A month on month set of figures, a year on year, it is this larger picture that can influence your business’s profit or loss at the year end and the means by which your accountant can start tax planning. Benefits of using online accounting software are:
Compliance: What should be filed, when; what income is taxable and which expenses are deductible would be done through software. • Budgeting: Accounting software allows client and accountant to work together, it can assist in the preparation of budgets, the development of reasonable estimates, determine drivers behind revenue and expenditures, etc. • Internal controls: Payroll, cash receipts, payments, petty cash, etc., all can be managed via the software. • Financial systems: accounting software feeds into internal controls to help you run your business more efficiently. • Financial statements: Preparation of financial statements may be required for management purposes or financing, online software can generate this at the press of a button.
Working with an accountant that offers online accounting software will help you to think more like an accountant. Recording all expense receipts, big or small, is part of this drive. Technology helps business owners stay on top of their expenses and it should guide them when it comes to deciding whether they are legitimate expenses or not. Accounting software systems not only protect business owners against non-compliancy, but also promote business growth.
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