Improving your record keeping

In the last budget, Mr Osborne announced that by 2020 small businesses would be completing quarterly tax returns rather than annual ones.

I know what you are all thinking “It will make my life so much easier. I can keep on top of my tax returns as by completing them more regularly I only have 3 months’ worth of information to submit rather than a whole year!”

No? I thought not.

Although these proposals are still at the consultation phase, it is highly likely that by 2020 the new system will be in place.

For those of you that are disorganised and without time to do it yourself this could see a big increase in accountancy bills, as this will essentially need sorting out four times a year rather than one! It could also see a large increase in penalties as there will be more chances to be late!

We think the key to dealing with these changes, is to turn a negative into a positive and use the quarterly reporting to benefit your business.

This is where online bookkeeping software can come in, and we often recommend Xero to our clients, but how will paying extra for bookkeeping software benefit the company?

1.       You will have access to current and relevant data

If you are using manual records, or Excel to keep your accounting records, how accurately can you measure the current performance of the business?

With Xero, you can get accurate, current data at the click of a button to help you make the right decisions for your business.

2.       Collaborate in the cloud

As accountants, we can have access to your Xero, allowing us to look at your numbers and give you advice. Allowing us to spot any opportunities and nip any problems in the bud!

3.       Save time (and or money)!

If you keep manual records, the chances are you will spend a lot of time either copying information from bank statements, summarising invoices or calculating any expenditure paid personally (or even worse paying your accountant to do it!!) Xero can receive your bank statements automatically from a direct link to your online banking, making it so easy to allocate the payments and receipts and reconcile your bank account. The invoicing function is quick and easy, meaning you can email an invoice to a customer within minutes of completing the job.

4.       Access from anywhere

You can access your accounts, check balances, upload expenses and even invoice customers from your smartphone or tablet. You are no longer restricted to sitting in a dark room pouring through your records!

How does this apply to me?

Over the coming months we hope to provide a series of case studies, based on actual clients from different industries, to demonstrate how Colmer Winchester and Xero can make your business better.

Starting from just £9 per month, Xero can really work for your business, saving you time, money and even (whisper it quietly) accountancy fees!

Get in touch with us if you would like a free demonstration of Xero, we would be more than happy to show you how good it is!