Running a business from day to day is no easy task. There’s lots to keep on top of - from managing invoices and cash flow to accepting payments and dealing with credits and returns.
Managing tax is especially important; failing to keep on top of your business’s tax commitments can quickly lead to headaches and extra work. That’s why an increasing number of businesses use cloud-based tax accountancy software solutions to manage everything from corporate tax returns to VAT.
HMRC predicts that by 2020 most small businesses in the UK will use cloud apps and software for record keeping and managing financial information. Making the move to cloud-based tax accountancy software will help to futureproof your business while also saving you time and money.
What is cloud tax accounting software?
The cloud is a collective term for any remote server, or computer, that stores data online. Cloud accounting software lets you access and manage your business’s financial data from a web browser or mobile app, wherever you are in the world.
Cloud tax accounting software adds additional features that allow you to manage your business’s taxes using this stored financial data. It helps to automate many tasks that previously had to be carried out manually, saving you time and money.
Cloud computing is safe and secure and can reduce the risk of your financial data being compromised or stolen.
What are the advantages of cloud tax accountancy software?
Cloud tax accounting software solutions share all of the advantages that traditional on-premise accounting software packages provide. These include:
- Saving time and money through automating basic tasks
- Managing your cashflow and contacts
- Generating sales invoices
- Creating reports to keep track of your business
- Managing VAT returns
But cloud-based solutions offer a range of additional benefits that can help your business to work even more efficiently.
Automatically calculate and submit VAT returns - By accessing your business’s sales data, cloud tax software can automatically work out how much VAT you need to pay, and even submit your VAT return to HMRC.
Manage self-assessment tax returns - If you are a sole trader or self-employed, cloud tax accounting software can help manage your Self-Assessment tax return. You can buy software that calculates what tax you owe from your accounting data and automatically submits your tax return on your behalf.
Integrate with other apps - Hosting your data in the cloud makes it easy to share information with other cloud software applications. This cuts down on time-consuming manual data entry and removes the potential for human error and inconsistency.
Who is cloud tax accounting software for?
Cloud tax accounting software is suited to businesses of all sizes, from sole traders and the self-employed to medium-sized businesses to enterprises and large corporations.
Many software providers offer a range of flexible packages that allow you to choose the features you need and pay on a low-cost monthly subscription basis.