Make January 2022 different!
January is a busy time for accountants. The self-assessment deadline falls on 31 January meaning millions of individuals and unincorporated businesses must file their tax return with, and pay their tax to, HM Revenue & Customs (HMRC) by 31 January each year. This year we have seen a slight relaxation, with HMRC not charging penalties on returns received before 28 February.
The statistics for January 2021 have not yet been published although, if previous years are to go by, we expect the number of returns filed in January to stretch into the millions. Unincorporated businesses make up the majority of the returns filed in January each year.
There are many reasons for this. It is common for business owners to have the responsibility for writing up their own accounting records. Those business owners are often too busy throughout the year to spend time doing this, meaning they are written up at the last minute. This is completely understandable. Business owners often wear many hats within their business and their time is much better spent on strategy and business operations.
With today’s technology though, we are in a position whereby writing up the records does not need to be time consuming or left to the last minute. The digital features within cloud accounting software automatically capture the financial transactions of the business and enable you to:
1.Raise sales invoices on the go. These sales invoices are automatically recorded in the accounting software.
2.Connect to your bank to download your bank transactions on a daily basis.
3.Automatically submit purchase invoices and expenses to your accounting software.
4.Access your cloud accounting software from anywhere at any time.
5.Have sight of your profits throughout the year, which gives you an insight into your estimated tax liability and avoids any late surprises.
Cloud accounting software can be used and accessed by business owners or accountants.
So, if you want to know your tax liability sooner, are fed up with writing up your records each year and want to focus on the business, then please contact us to find out more on how we can help you.