Accountancy software for contractors
If you’re running a small business, managing your accounts can be very demanding. After all – you’re busy! However, you may be surprised to know that well-established providers are offering accountancy software for contractors and small businesses – and such packages could prove invaluable.
There are plenty of reasons the demand for accountancy software for contractors and small businesses is rising. As technology improves and competition in the marketplace grows, the number of features available with accountancy software is fantastic!
Keep reading and discover some of the fantastic features of the most popular accountancy software packages available in the UK. We recommend you identify the features that you want the most before selecting a package – because the “perfect” package that includes everything you need may be out there if you shop around.
All business paperwork in one place
Firstly, before we look at the individual features on offer, accountancy software is a great way to ensure all of your business’s financial documentation and administrative files are kept in one place. You can log in to your dedicated account and access everything you need to run your business and pay your taxes. All the best-selling accountancy software for contractors will be accessible via an online portal and mobile app. This means it’s easy to access your account wherever you are – as long as there is a good signal or Wi-Fi connection!
Banking
Some of the better accountancy software for contractors will provide you with a live business bank feed – so you can see all of your incomes and outgoings in one place. This is a very useful way to monitor cashflow.
Templates
Many software providers will include impressive automated templates for your business documentation. This is a wonderfully easy way to create invoices, purchase orders and any document that needs your business information. These templates are innovative too. They will use the information you entered when setting up your account to create the documents, and will place your logo on as well. Designing professional-looking business paperwork has never been more straightforward. Depending on the accountancy software for contractors that you choose – you may even be able to choose from a series of templates – so that you can tailor your company’s image to your personal taste.
Planners
Many accountancy software packages include intelligent planners that you can tailor to your requirements. These planners can set off automatic alerts for many situations, including late payments, payments owed, tax deadlines, etc. You may also be able to track specific projects that you’re working on and set reminders and goals along the way.
Communication
If you’re like us, you may struggle to find peoples email address when you need them the most! Therefore, look out for software for contractors that includes all-in-one communication features. This will allow you to access mailboxes, etc. via your account. Some software will automatically save important contact information for you in your address book – saving you even more time.
Share important documents
Sharing documents can be a real pain in the backside. However, accountancy software may have a solution. Accountancy software may allow you to share important documents with your connections – quickly and securely. This feature is sure to benefit the majority of contractors.
Inventory management
If you sell multiple products, keeping track of your stock levels can be difficult. Therefore, we recommend you choose accountancy software that includes an inventory management tool. As a result, you will always know what you have left in stock and get automatic reminders when you need to stock up.
Expenses
Keeping tabs on your limited company expenses can be a challenge – primarily because it’s so easy to lose paper receipts! Most established accountancy software packages will include a special expenses management feature where you can take a photo of your receipt and store it permanently. This feature is undoubtedly a must-have!
Currency assistance
Do you often work with different currencies? If you do, it can be tough to keep tabs on global exchange rates because they’re changing all the time. See if the accountancy software you’re interested in provided additional support when it comes to spending money abroad because it could be a life-saver!
Accounting, VAT, corporation tax and important duties of a business manager
Running a small business can be very challenging but equally rewarding. There are many essential responsibilities that business owners must take care of to avoid HMRC penalties. However – don’t panic. Accountancy software can come to the rescue.
The best options out there will provide comprehensive support that will assist you with:
- Calculating your corporation tax bill and helping you pay the right amount, at the right time
- Preparing your personal tax return.
- Profit and loss
- Producing a dependable balance sheet.
- Withdrawing dividends.
- Printing and distributing dividend vouchers.
- General business finance reports.
- VAT management and assistance, along with automatic calculation of VAT bills and easy submission to HMRC.
Combining contractor accountancy with software
A relatively modern approach to small business accountancy involves combining traditional support from an accountant with the ongoing use of innovative software (sometimes referred to as an ‘online accountant’, or ‘online contractor accountant‘). If you shop around, you’ll see many accountancy practices offering industry-leading software as part of their package – and this could be the perfect combination for you.
Packages usually start from £90 per month. This type of accountancy solution may be ideal for business owners who like the idea of using software but would appreciate the ongoing support from a professional accountant – when they need it.
How to choose accountancy software
We’ve listed the best features that accountancy software can offer above. But before you choose accountancy software, run through the checklist below and make sure you’re completely satisfied with your decision:
- Does the software include all of the features you’re looking for?
- How difficult will it be for you to transfer your existing business accounts to the software package?
- If you enjoy using your phone, does the accountancy provider have an app that you can use?
- Is the software established within the industry?
- What are other small business owners saying about the software?
- Do you want support from a professional accountant? And if so, are the accountants out there that offer the software well-respected?
- Are there any special offers for new clients?
- Will the software provide you with value for money?
- Do you know any friends or colleagues who use accountancy software? And if so, what is their opinions?
Popular providers of accountancy software
FreeAgent
FreeAgent is an awarding-winning provider of specialist online accountancy packages for sole traders, partnerships and small businesses. There are three packages on offer, starting from £9.50 per month (rising to £19.00 per month after 6 months).
Recently, FreeAgent has experienced exciting growth, and the NatWest Group now owns it.
Read our FreeAgent review.
Further reading
What is a personal service company (PSC)?
Moving from sole trader to limited company
Limited company expenses
Advantages of limited company contracting
Disadvantages of limited company contracting
Choosing a contractor accountant
Responsibilities of running a limited company
Status Determination Statements (SDC)
