How Has Technology Changed Business Accountancy Over The Years?
Learning how to keep track of your business accounts is something that many business owners dread (cited as the key reason people wouldn’t choose to work for themselves, as many people are naturally uncomfortable when it comes to accounting), and something that many simply don’t have the time or inclination to do – which is understandable.
If you do need to keep records of your business accounts (and by the way, the law says that you do), there are various technologies that, when used properly, can help you do so with ease, so that when the time does come to send off your tax returns, there is a minimal paper trail to follow and minimal effort required on your part. The key thing to remember is to seek the services of a professional accountancy services if ever you are stuck (there are penalties for late tax returns and you don’t want to be left with an unpaid tax bill if you get your sums wrong).
The first rule is this – don’t keep everything on paper, or rather don’t keep only one master copy on paper. You will need print-outs, but keep copies – both electronic and hard-copy duplicates of bank statements, receipts, cash-flow forecasts and received/issued invoices. Keeping electronic copies of your income and outgoings is also advisable, as it will help you forecast likely taxation obligations, too.
Spreadsheets aren’t a necessity, though you should learn to use them if you can’t already. Even so, there are other technologies that aids the taxation and accountancy process. One such technology is the many accountancy software packages that do the calculating for you at the end of the tax year. These might be the ones you install on your work PC or laptop, which your accountancy firm tallies against your actually accounts during the year, come the end of the year.
One other key way to manage your accounts is online. As well as business internet banking, which many banks offer, you can also download software that is linked to tax codes and the most up to date calculations – so that you’re always up to date with your obligations.
If you are looking for some help and want to hire an accountant Chester based company Champion will help you out.
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