Gorilla Accounting talks about how cloud-based bookkeeping software can be used to revitalise the accounting process for Contractors, Freelancers, and even Accountants.
As the director of a micro business, life can be a rollercoaster. You’re responsible for ensuring that your business is ticking smoothly, that the performance of each trading period surpasses the last, and that your finances are in order.
Due to the added pressures of working without statutory employment rights and the roll-out of the IR35 reform in the public sector, it’s even more important to manage your finances in an efficient manner to improve productivity.
If we’re putting it into perspective, as the director of a Limited Company, you’ll be required to manage the day-to-day running of the company, and you’re legally responsible for filing the financial paperwork.
How WhatsApp fits into Accounting
When we founded our contractor accountancy firm in 2014, our vision was to set it apart by taking a back-to-basics approach. We did this by establishing a customer service that delivers advice that’s easy to comprehend, and easy to access, which we demonstrate through our use of WhatsApp.
Communicating through WhatsApp is a trend that’s overcoming the traditional telephone call and it’s an opportunity that makes reaching your clients even easier. It adds a human touch and feeds information directly to you, rather than through a middle-man.
A large portion of our client base are IT Contractors, and by recognising their understanding of technology, we use WhatsApp to follow up with them. It’s personal, it’s direct and it doesn’t disrupt day to day behaviour, similar to online accounting software that’s accessible directly through an app.
Spreadsheets VS Cloud Bookkeeping
Along with communicating with your accountant, the way the data is recorded and processed through online accounting software easily trumps the use of spreadsheets which requires constant manual updating. They require more man management and they have the potential to be incorrect.
By using online software, you can be sure that your accounts are up-to-date by the second and there’s the obvious reason – it’s undemanding and by viewing information through this form, it’s easily digestible.
Why Cloud Accounting is the Future
Accounting – it’s not exactly a thrilling task unless you’re a natural at juggling numbers. By using cloud-based software, it lives up to the mission set out by Ed Molyneux, Managing Director of FreeAgent,
“Our mission is to make people feel in control of their day-to-day business accounts, relax about tax and work more effectively with their accountants.”
If we’re talking about collaboration between the accountant and customer, by using an online platform, both parties will be able to see the same overview.
Let’s talk expenses. As a limited company contractor, you will be able to claim certain expenses that have been incurred wholly, and exclusively for the purpose of running your business. You’ll then send your receipts to your accountant by taking an image and uploading them to your online account.
Or if you’re a spreadsheet user, you’ll be required to email a scanned copy of your receipts, or post them to your accountant which incurs more costs, biting into more time.
How Technology is Driving Legislation
Making Tax Digital is a piece of legislation for Contractors and Freelancers which means that as of April 2019, a selected number will be required to submit their tax returns on a quarterly basis through digital means. This introduces efficiency to the workplace and we’re one step closer to improving the working life of small businesses.
The Government have pledged to digitally interact with customers, David Gauke MP, Financial Secretary to the Treasury, said,
“In every walk of life, people are embracing the digital revolution. From banking online to doing their food shopping, from making a GP appointment to booking a cinema ticket, from advertising a business to paying invoices, millions of individuals and businesses are benefiting from the convenience and simplicity of digital services…
“The tax system is no exception,” hence the reason for Making Tax Digital.
If a longstanding department such as Her Majesty’s Revenue and Customs are reforming law to introduce measures to echo a digital initiative, this underlines the importance of transitioning as technology develops.
Gorilla Accounting is a specialist accountancy firm exclusively for Contractors and Freelancers operating through a Limited or Umbrella Company.
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