Three steps to simplify your accounting

Three steps to simplify your accounting

September 14, 2023 Comments Off on Three steps to simplify your accounting By Joshua Leigh & Co

Accounting doesn’t have to be a time-consuming and complicated task.

By breaking down the accounting process into manageable steps, you can simplify your accounting and have a clearer view of your business’s financial health.

Below are three steps to get you started:

Utilise modern accounting software

Modern accounting software can be a game-changer for small businesses.

Innovative tools automate many of the tedious tasks associated with accounting and reduce the likelihood of errors.

They also offer features such as real-time financial reporting and integrations with bank accounts, helping you keep all your financial data in one place.

With cloud accounting software you can share your financial responsibilities with other devices and manage your accounts from any location.

Utilising the newest technology also means that you will be in line with the Government’s ‘Making Tax Digital’ (MTD) regulations which mandate your use of cloud-based accounting platforms.

If you run a VAT-registered business, you should already be using MTD-compliant accounting software to complete your tax returns.

But, if you are a sole trader, you will need to get prepared to comply with the MTD for Income Tax Self-Assessment (MTD for ITSA) regulations that will come into force from April 2026. When is

Before choosing a software, ensure it meets the specific needs of your business and complies with the necessary regulations.

Your cloud accounting solution won’t quite take away all the strain from your business’ finances. You are still integral to the process but keeping these digital records will help to streamline your accounting process.

Remember, the time you spend completing your accounting responsibilities could be better spent on your business’ success in other areas.

Regular reconciliation

Reconciliation should be a non-negotiable rule in your accounting activities.

Regularly studying your business accounts helps in identifying discrepancies early on and prevents potential financial hiccups in the future.

It involves verifying that your business records match up with your bank statements, which can be a straightforward process with the help of a professional financial advisor.

Again, doing this yourself is time consuming and might be better performed by an accountant.

Seek professional advice

While it’s commendable to take a DIY approach, accounting is one area where professional advice can be invaluable.

Engaging a professional accountant to assist with your finances, so you can focus on your business, can be the difference between a successful business and a struggling one.

A seasoned accountant can help you navigate the complex landscape of tax laws, financial compliance, and business planning. They can also offer tailored advice to help your business thrive.

Simplifying your accounting process doesn’t mean cutting corners. It means adopting a strategic approach to managing your business finances effectively.

By utilising modern tools, reconciling regularly, and seeking professional advice, you can demystify the accounting process and focus more on growing your business.

To learn more, please contact one of our team of experts.

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