Managing your accounts is vital for any business, whether it’s established or just starting out. In days gone by, accounts were kept in a ledger and everything had to be calculated correctly but there was always a risk of making mistakes.
These days, mistakes are almost a thing of the past because there is now business accounting software available that is an important tool for any business due to the Real Time Information legislation (RTI). This is a huge change to the tax system and the introduction of Pay As You Earn help to streamlined the tax system.
As people now change jobs more frequently than ever before and some have more than one job at once, it can be tricky to keep up with things. Add to the fact that people have several pensions, benefits and loans it can make it even more difficult, but all these factors have to be taken into consideration when the time comes for them to be paid.
RTI was introduced to help improve the submissions of PAYE and the fact that it was easy to move between work was the main reason for its introduction. This way of reporting meant that employers now have to submit the relevant PAYE information to HMRC when employees are paid as opposed to sending the information each year. As with most things, changes happen quickly and this means that reporting can be outdated which means that technology has had to step in to help implement RTI accounting.
Businesses now have a need to move quickly and this means that they want information readily available at the click of a button. Weekly reports are not as reliable as real time information which allows them to see exactly what is happening at that moment in time, giving complete control over finances. This data is available around the clock and because more and more businesses are now demanding this, it has resulted in a many different software packages being developed.
One example of this software allows the exporting of data in order to help identify any amendments that have been made to the profile of an employee. This could range from information such as their address, salary or even their bank details. This software now gives employees the opportunity to stay in control with their own tasks that are related to HR such as maintaining their personal information and ensuring that it is up to date. This means that the business owner does not have to worry about carrying out this task, the data can them be exported and passed on to accounts so that it can be used for their PAYE submissions.
As a result of the introduction of RTI, using software in this way is the only way of ensuring that everything is up-to-date. Having the ability to take a look at your business at that moment in time is extremely useful, especially when it comes to PAYE submissions. This has led to many businesses opting to make the switch to accountancy software simply because offers complete control and convenience.
Gower Accountants are experienced Chartered Accountants in Leicester, who specialise in management accounts, bookkeeping, tax planning and business strategy.