Over the last 6 years there has been a technological revolution in online accounting software.
As an accountant, we need access to your bookkeeping information so that we can prepare limited company accounts or personal tax returns. Before online accounting software we would have to wait for a backup of your data to arrive by post and then while we were working on your data, you wouldn’t be able to work on it at the same time.
The advantages of online accounting software
With online accounting software we now have immediate access to bookkeeping data and more importantly you can carry on invoicing your clients at the same time as we are preparing the relevant returns. And, if we have a query about a particular transaction or you need help with something, we can both look at the data at the same time.
Reporting to HMRC
Using online accounting software makes reporting to HMRC much easier for tasks such as VAT returns and monthly payroll. Some of the online software providers are now enabling the submission of personal tax returns directly to HMRC from their packages.
With Making Tax Digital (MTD) just around the corner, more and more taxpayers will have to report quarterly to HMRC and it is expected that HMRC will only accept data in a certain format that cannot be provided from something like Excel.
From an accountant’s perspective the most important aspect of clients using online accounting software is the accessibility and visibility of clients’ bookkeeping data.
Accounting software options
There are a lot of choices available for online accounting software most of which have free trials so that you can try it out before you subscribe to it. All of the online accounting software is paid by monthly subscription with no fixed contract term which means that you can cancel your subscription at any time if you need to.
Some of the packages our clients use include:
The final point about online accounting software is that the software provider always ensures that everyone is running the latest version, so you won’t have to worry about spending a lot of money on new software or upgrades.
If you need any further information or clarification on the online accounting software options available please contact us.