It’s long been recognised that doing your accounts online can save both time and money.
Technology has speeded up the whole accountancy process. The use of features such as bank statement feeds and integrated accounts and tax returns production means that much of the manual intervention can be cut out.
Cheaper Accounting Fees
Eliminating work, both on your part and the part of your accountant, means cheaper fees and that’s a welcome thing given that all contractors operating under limited companies would likely have been hit by the new dividend tax introduced from April 2016.
Read IT Contractor Dividend Tax Key Dates – click here
Cloud Accounting systems
Not only this, but the use of cloud accounting systems allows the IT contractor to be in better control of their finances. They can get an up to date view of how much they have made, how much they can take from the business and how much they need to set aside for the tax man.
Not all firms are taking advantage of the new technology though. Many still work with clunky spreadsheets flowing back and forth between accountant and client; a method which can result in finances getting into a muddle, especially for those who are new to contracting.
Avoid financial disasters with technology
A muddle with the finances can mean that the IT contractor takes too much money out of the company, not leaving enough available to pay the tax bills. That’s a financial disaster.
When this happens the next few years can feel like a huge uphill struggle to get back into control of the situation and put the finances back on track. So this is something to be avoided and a good method to do this is by making sure that both you and your accountant use the same systems and can see the same data at all time; something that can only be achieved with a Cloud Accounting system.
Making Tax Digital
If HMRC have their way, the use of Cloud Accounting will likely become compulsory with the introduction of the flagship Making Tax Digital IT project. This could have an implementation date of as early as 2018, although the exact dates and timescales are always a moving feast when it comes to IT projects with HMRC.
So whilst some may shy away from the move to the accounting technology, getting ahead of the curve can only make sense especially if you can save on your outgoings.
Isn’t it a pain to switch accountant?
Changing accountants is actually a very simple process and doesn’t need to be onerous in anyway. Although you can change at any time during the year, the best time to switch accountants is at your year end.
Once you’ve decided to switch there is very little for you to do, except to give notice to your current accountant as well as authorise them to talk to the new accountant to pass over the accounting paperwork. With reputable and professional firms this doesn’t usually cause any issues and so you shouldn’t be exposed to much disruption at all.
Switching to a Digital Accountant can be even easier; there are no visits to an office and no need to take time out of your work schedule. Everything is done online with queries being answered in minutes and hours rather than days and weeks. That said it is always worthwhile checking your Digital Accountant is qualified and able to deal with your accounts as well as your taxation queries.
Unfortunately there is a trend towards inexperienced staff or account managers being assigned to call handling and query answering roles in firms of accountants. Don’t be fooled by the term account manager – if there’s no “ant” at the end then they are not an accountant.
It’s important to make sure your queries are dealt with by suitably qualified staff as, if anything is wrong, HMRC will come after you and not your accountancy provider at least in the first instance.
Switch and Save
To make it easier to switch we’ve just launched our new Switch and Save Service.
You can now book your slot to switch to a new accountant at the end of your current financial year.
All you need to do is fill in this form:
Switch and Save – Special Offer
To celebrate the launch of this brand new service for a limited time you’ll get three months of accountancy services for just £100!
Book your switch slot now.
Don’t delay as this is a limited offer to celebrate the launch of our Switch and Save service.
Read more here:
So if you’re an IT Contractor, or know someone who is, contact eccl@CheapAccounting.co.uk quote code kickoff100, and if you sign up to switch to accountancy services from CheapAccounting.co.uk to start from your next financial year we’ll give you the first 3 months of accounting in your new year for just £100 plus VAT, payable on confirmation of your request to switch and save.
That’s 3 months of accounting for less than most accountants charge for one month!
Please share this great offer.