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Why using accounting software in the UK can help a Self-Employed

Being an entrepreneur is difficult, but this has not stopped people. Over the years, the number of self-employed has risen significantly. There are more than 5 million self-employed in the UK, up from 3.2 million in 2000. People often like to be their own boss, to control their lives, and to have freedom. However, being an entrepreneur means they manage most of their activities personally. Being an entrepreneur also means that there are also various challenges that they will face while running the business. Depending on the business type, it could be in manufacturing, advertising, logistics, or other factors. But one such task is common for everyone in the accounts of the company. Accounting is crucial for the success of the organization and is considered the language of business. We take a look at the benefits of using accounting software in the UK as a self-employed.

Primarily a well-maintained book of accounts offers you a better understanding of your business, like the cash flow, the inventory, and so much more. It is sometimes a lethargic activity, but it’s best for your business that you don’t skip accounting. With accounting software, you can easily maintain your books of accounts and avoid the last-minute hassle.

What is accounting software?

It is software designed to process and record your financial transactions like accounts receivable and payable, invoicing, HMRC self-assessment, Income and expense management, etc. The software gives you an outlook on the current position of your business. Making it very easy to keep track of your records.

What are the benefits of using Accounting Software as self-employed in the UK?

Easy-to-use interface 

The primary value of the software is the user interface. Making it very attractive even for the non-tech-savvy entrepreneurs. Moreover, you can effortlessly enter and process the data.

Saves time

The most valuable asset for a self-employed or for anyone is time. Time works the same way for everyone, and keeping a well-maintained book of accounts is a demanding task. You can eliminate manual data entry and calculations. It allows you to save some time that can be used elsewhere more productively.

Accounting software has greater accuracy.

Since the process is automated, there is little chance for manual errors to happen during the calculation. It is essential to have a good book of accounts to monitor your business. Cash is the lifeblood of business, and you need to manage it efficiently. The best way to do this is by maintaining the books properly. The software makes the complex and time taking processes easier and gives you valuable insights. 

Cost reduction

Most people agree that maintaining accounts is a critical factor in the success of the business. Due to this factor, only a few companies outsource, and they tend to hire people in the house. But if you are self-employed and don’t want to outsource and incur a high fee, accounting software will help you organize your books. 

Inventory management

If you are in a consumer goods business, garment business, or any sector where inventory plays a huge role. Inventory management plays a huge role and is the crux of the matter. The software will help to manage your stock accordingly and let you know how much you have remaining. Therefore, it provides statistical data that you can use to analyze your trade cycle and purchase stock according to the requirements.

Using accounting software makes tax filing more manageable for a self-employed

Self-employed individuals have a hard time keeping the book of accounts and sometimes even more during tax filing. As a self employed in the UK As a self-employed in the UK, accounting software and having an organized book of accounts will make it dramatically easier to file your tax return.

Secure database

You can password protect your data. This ensures that access will only be given to the authorized personnel. It gives you quick access and is also protected from the threat of wear and tear or missing data. It also reduces the usage of paper in your organization and the storage of these papers.

Quick data retrieval

Have you ever thought of something, and all of a sudden, you wanted to look that up? It happens quite a lot of the time. Back in the days, to look through the entire paper even, with organization techniques used, was always a killer. However, now with these tools, you have a location to access all the data for your organization. 

Sidharth Bharthan Menon
CEO, taxtotal​