The new financial year has brought a range of tax changes for businesses. And with even more changes to come, there’s never been a better time to update your business accountancy software.
Cloud-based accounting software like FreeAgent and Xero help businesses streamline their financial processes. And working with a specialist cloud accountant can help firms make the most of the software.
Here are three reasons to upgrade your accounting software (and accountant) in April 2023:
1. New financial year, new start
Most limited companies start their new accounting year on April 1st, while sole traders often choose April 6th for their tax year start date.
Whatever date you use, the start of the new financial year is the perfect time to switch to a new accounting system.
Switching at the beginning of the financial year means you can minimise the amount of historical data that needs to be imported into your new system.
A specialist cloud accountancy provider like CloudAccountant.co.uk makes this changeover as easy as possible.
2. Keep up with changing tax rules
The business tax landscape is constantly changing, and staying up to date with the latest rules and regulations is a real challenge.
The new financial year brought a raft of changes for small businesses, including significant changes to corporation tax, investment allowances, capital gains tax, and the tax-free dividend allowance.
Cloud-based software like FreeAgent and Xero makes tax compliance easy.
You can work with a specialist accountant like CloudAccountant.co.uk to maximise tax savings in the new tax year.
3. Get ready for Making Tax Digital
Making Tax Digital (MTD) is a government initiative designed to make the tax system more efficient, accurate and easier for businesses.
As well as keeping track of finances, cloud software is approved by HMRC for keeping and submitting digital tax records.
MTD for VAT – the first phase of the MTD rollout – came into effect in April 2022. It means all VAT-registered businesses need to use cloud accountancy software like Xero and FreeAgent to submit tax returns.
For self-employed business owners and landlords, Making Tax Digital for Income Tax was due to take effect in April 2024, but this has been pushed back to April 2026.
Eventually, all businesses and self-employed people will need to keep digital tax records and make digital tax submissions.
Jason Bradley, Business Development Manager at CloudAccountant said:
“Upgrading your accountancy software to Xero or FreeAgent can provide a range of benefits, including more efficient financial management, reduced administrative tasks, and improved accuracy in bookkeeping.”
“By choosing CloudAccountant as your new accountancy form, you can benefit from our expertise in using these software programs and receive tailored advice on how to maximise their features to enhance your business’s financial performance.
With CloudAccountnat, you can access real-time financial data from your chosen software, enabling you to make informed decisions quickly and effectively.”
Want to learn more about cloud accounting software and support? Speak to a member of the CloudAccountant.co.uk team today. Call: 0808 281 0303.