The daily management of a small business or limited company is a time consuming activity. Bookkeeping tasks which have to be performed daily in order to keep up to date with the administration can be overwhelming, leading to falling behind with important paperwork. HM Revenue & Customs is able to order an inspection of the administration of a business at any time, with very little notice, which can be alarming. Any business that does not have a reliable accounting system could be served a penalty notice by HMRC. This can be avoided by outsourcing your administration to online accountancy services, which has four main benefits:
1. An online accountant has accounting applications which require much less time and input from the accountants themselves, reducing the cost of the service provided. Information can be submitted online in a timely manner without being sent back and forth through the mail service. The reduction in time and the availability of the latest technology keeps the cost of accountancy services as low as possible to provide an affordable service for Small and Medium Enterprise and limited companies. Time and money are valuable resources, which online accountancy can maximise.
2. Another benefit of online accountancy services is the flexibility for business owners or managers who travel extensively in the course of their work. Online accountancy provides access anytime, anywhere which is beneficial to most businesses. Submitting documents or accessing financial reports can all be done instantly, wherever you are in the world. Any problems or queries can be solved in an instant just by sending an email.
3. Keeping your own accounts is a time consuming task which is prone to human error. HMRC requires the accounts of a business to be clear and accurate. Just one error can entail many hours of calculations to balance your figures. Online accountancy services are accurate and easy to understand. As invoices and other documents are uploaded to the system, the calculations are updated to give you a real time figure. This is particularly useful for the preparation of your self-assessment tax return, which is frequently based upon estimates. This can lead to incorrect payments of tax being demanded, requiring the outlay of valuable capital which could be invested in your business. Estimated information can also lead to an incorrect tax code being operated which will result in the incorrect amount of tax being deducted from Pay As You Earn.
4. The preparation and submission of your self-assessment tax return is an essential duty, which is completed annually. Missing the deadline, which is in October, means that you will receive a fine from HMRC, plus the possibility of interest payments if the fine isnít paid promptly. Online accountancy services provide the facility to file online each year, moving the deadline to the following January, three extra months to prepare your accounts.
Online accountancy services are low cost, convenient and allow access to records in real time, a huge benefit for you and your accountant. As time and money are valuable resources, online accountancy will maximise both, allowing you to concentrate on the daily management of your business.
Article Source: http://www.abcarticledirectory.com
Lee Murphy is the co-founder of The Accountancy Partnership, based in Cheshire. Specialising in online accountancy services, The Accountancy Partnership is proud to offer online accountancy prices. For a personalised accountancy quotation, visit www.theaccountancy.co.uk.
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