With legislation surrounding accounting becoming increasingly complex, filing your business' tax returns seems to become more difficult every year. This guide will help you to understand accounting software and establish your business' needs when it comes to accounting software.
Accounting software allows you to automate your accounts system, making sure the figures balance at the end of the month. It simplifies book-keeping, saving you time and the money you would ordinarily spend on an accountant. Many accounting packages also make filing your online tax return easier by linking up with the HMRC website.
The accounts package you choose will depend on the size of your business. If you are a sole trader, you probably won't need payroll so you may be able to use a personal accounts package. Similarly, if you make relatively few transactions each month, it may be cheaper to do your accounts manually.
For more information on the accounting requirements of your small business, check out our guide on early stage accounting.
When you are buying your accounting software, make sure it is compatible with the computer system you use. The package must meet the statutory requirements set out under the type of business you have registered - you cannot use a personal accounts package if you are a limited company. Ask other businesses in your industry or your accountant to recommend a package.
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