When it comes to the world of accounting, most contractors will wholeheartedly agree that technology – and in particular, expenses apps – make keeping on top of finances altogether easier. Smart, secure, built to save you time, money and help ensure your tax compliance, contractor expenses apps are now widely available, and in the case of QAccounting’s very own one, free.
In this article, we’ll explain why an expenses app could make a big difference to the way you run your business and manage its finances…
For greater financial visibility.
A contractor expenses app presents real-time financial information, which will give you live visibility of your business income, expenditure, profitability and tax liabilities. Let’s say you drive to and from a client site and want to file the expenses incurred. An expenses app not only makes it straightforward to log mileage, but it will also record and store this data before updating your records.
You can then use this information to understand your overheads better and, in turn, make smarter financial decisions, which you can do with the help of an independent financial adviser.
For tax compliance.
While a contractor expenses app cannot guarantee your tax compliance, it may prove vital in helping you or your contractor accountant spot issues, which could result in discrepancies when it’s time to submit your company and personal tax returns. Most, if not all, expenses apps will integrate with your accountant’s own system. If, for example, the expenses you’ve submitted don’t stack up against the money that’s left your business account, your accountant will be able to see this and solve the issue quickly. This is important when it comes to submitting your accounts to HMRC.
These apps are also built to cater for the phased roll-out of Making Tax Digital (MTD) which, since 1st April 2019, means VAT-registered businesses with a turnover above the VAT threshold of £85,000 must submit their VAT returns digitally.
Taking a picture of a receipt when you make a purchase, before uploading the image to your expenses app (along with details of the transaction) will make managing your accounts much easier in the long run. With everything stored securely in the cloud, you won’t need to endure the painstaking process of finding, organising and filing every receipt at the end of the month or year.
For any time, anywhere working.
It almost goes without saying that a contractor expenses app can be used any time, anywhere – whether you’re on-the-go, at home or on-site with clients. With the ability to keep track of your business expenses wherever you are, whenever you want, expenses apps have quickly become a vital tool not only for contractors but for millions of self-employed workers around the world.
With over 20 years’ experience in supporting contractors, QAccounting is one of the UK’s leading contractor accountants. To learn more about our flexible accountancy packages,
which start from just £95p/m + VAT and include an innovative contractor expenses app, please request a callback – one of our friendly and knowledgeable accountants will be in touch.