If you are in the market for accounting software, you might feel overwhelmed by all the available options.
Xero, Sage, QuickBooks, FreshBooks, and Freeagent, to name a few.
There are many to choose from, and getting it right is important.
Modern and usually cloud-based accounting software helps to reduce the amount of time spent on data entry by allowing users to sync their business bank accounts and credit cards with the software, a function that traditional software could not do.
Once synced, transactions flow into the accounting software and can be categorised into various accounts, often with little manual intervention.
While most accounting software is easy to use, a general understanding of accounting principles is needed to prepare financial reports correctly.
And this is why businesses hire skilled bookkeepers or accountants to maintain or review their books.
An added function of modern software is the ability to store copies of the original source documents (the invoice) against the transaction, allowing the accounting software to act as the ‘full electronic record’ of your business transactions, eliminating the requirement to keep bulky paper copies of sales and purchase invoices.
At James Milne, we focus on Xero and their associated (free) product, Hubdoc.
Xero is an excellent option for all businesses, whether you wish only HMRC compliant record-keeping or more advanced management reporting. Hubdoc allows you to import all your source documents and convert them into data you can use.
Hubdoc streamlines the data entry process by reading essential information from bills and receipts, such as supplier names, amounts, invoice numbers and due dates, and turns this into usable data. A transaction is then created in Xero, with the source document attached.
For an accountant, this is great!
As the data is securely held in the cloud, both the client and their advisors can access it remotely and simultaneously. This allows advisors to either monitor and review their clients’ data or assist when required. Bookkeeping responsibilities can be split between client and advisor or all responsibilities can be handed over, whilst maintaining the full digital journey as will be required by HMRC.
Whichever way suits, we can help ensure that your record-keeping, VAT returns and in the future your Making Tax Digital (MTD) reporting is done accurately and timeously.
For more information on accounting software for your business, please contact our team.