Why Might Contractors Need An Accounting Package?

Your business is booming. Great. But that also means more transactions, more invoices, more expenses, more time needed to keep on top of your accounts.

While many contractors pay an accountant to do their bookkeeping and file their tax returns, often this is a one-off fee, once a year. This can be costly, particularly if your accountant charges you a rate by the hour or project. And if you’re spending a lot of time trying to manage your books during the rest of the year, this could also be costly – after all time is money when you’re self-employed.

As your business grows, it might be worth considering an accounting package. Some people associate an accounting package as an app or software which provides you with tools to streamline your business incomings and outgoings. And in fairness, these can be really useful in helping you keep on top of your books.

But here, we’re looking at the accounting packages that accountancy companies can offer. This is a service you usually pay for on a monthly basis and can include unlimited advice and guidance from a chartered accountant, among other things.

What are the advantages of an accounting package?

1. No more admin

Whether you’re starting out or an experienced contractor, all the admin associated with bookkeeping is done for you, saving you precious time. For freelancers or contractors who have recently started working this way, you can get accounting packages which include opening a business bank account, setting up, registering your company and tax registration.

Certain accounting packages will also include access to apps or a portal where you can easily upload your expenses and receipts, ready for your accountant to manage on your behalf.

2. Unlimited support

Having a dedicated account manager, who has taken the time to get to know your business inside out means that you’ll receive tailored advice. Many accounting packages on the market include unlimited support – this means you can ask for expert guidance as and when you need it.

3. Budgeting

When you open that invoice after using a traditional accounting service, you might get a nasty surprise – especially if it’s more than you had budgeted for. An accounting package is much more transparent. There are no hidden fees. This means you’ll know how much you pay each month (and what you get for that money), which helps massively with budgeting.

4. Specialist advice

There are accountants out there to suit everyone’s business needs, whether they are a one-person limited company, sole trader or a small business. Pick the right one, a contractor accountant for example, and you’ll receive up-to-date knowledge on all policies that could affect you and they can advise you accordingly. Having a specialist who understands tax such as IR35 can help safeguard you against future HMRC investigations.

5. Additional perks

Many accounting packages often come with other perks that vary depending on the price, your needs and the accountancy firm. With this in mind, it’s worth looking at what additional benefits you get that could be valuable to your business.

Some examples of benefits you may need, include:

• Support with your contracts to ensure they comply with the off-payroll tax rules
• Salary and dividend strategy planning
• Vital business insurance cover
• VAT returns
• Access to accounting software

QAccounting is one of the UK’s leading contractor accountants. To learn more about our trusted accounting packages, which start from just £95 per month + VAT, please request a callback – one of our friendly and knowledgeable contractor accountants will be in touch.