The benefits of filing your expenses via an expenses app
Today, there seems to be an app for just about everything. Calorie control? Yep. Daily steps? That too. An app to control most household appliances from your phone? Sure. An expenses app? It goes without saying.
While many apps available seem altogether ridiculous (an app for organising cuddles in your local area being one) there are plenty that serve an important purpose, like ones that help you sort and file your business expenses.
As any freelancer or contractor will know, there are two sides to working for yourself. One is spent finding and working for clients, earning money. The other, less appealing aspect of self-employment is keeping on top of your finances and organising your tax returns.
In simple terms, with an expenses app, recording, categorising and storing information about your business spend becomes simple. Doing this is important so that you have updated financial information readily available when you or your accountant are completing your annual company and personal tax returns.
But other than sheer convenience, why else are expenses apps quickly becoming a vital tool for independent professionals?
Total financial visibility
Think of it this way – sifting through hundreds, if not thousands, of receipts every year before calculating them and subtracting this amount from your tax bill doesn’t just take time and effort, it also means you’re likely to be in the dark about your spending and subsequent tax liabilities throughout the course of the year.
The beauty of an expenses app is that by taking a quick picture of receipts on your smartphone before uploading its details to your app, you’ll keep a record of everything. With all this financial information stored securely, you’ll have a much better idea of your overheads, along with how much tax you’re likely to owe HMRC.
With total visibility of your finances you can kiss goodbye to confusing spreadsheets forever.
Real-time tax information
We talked about how expenses apps usually calculate your spend and resulting tax liabilities, but did we mention that happens instantly, the moment you file an expense? Well, it does.
By offering live and real-time financial data, you’ll have an up to date estimate of your tax liabilities and a better idea of your spending habits, which you can cast your eye over in-app in just a couple of taps.
This helps you make better informed business decisions now and in future, allowing you to plan financially with much more precision.
Seamless integration with your accountant’s software
While you might imagine expenses apps remove the need for an accountant, that couldn’t be further from the truth. In actual fact, these apps are built to integrate with accounting software and give your accountant the tools and information they need to provide a more focused and improved range of accountancy services.
Take QAccounting’s very own expenses app. Linking seamlessly to our own technology, your dedicated Account Manager will be able to keep track of your business finances, meaning they can instantly offer trusted and insightful accounting advice.
With over 20 years’ experience, QAccounting is one of the UK’s leading accountants, offering a range of full service accountancy packages that start from just £95pm + VAT. For more information, please request a callback – one of our friendly contractor accountants will be in touch.
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In the world of work, freelancing is an increasingly popular option. The promise of flexibility, unlimited earning potential and complete control over the way you work is a hugely attractive prospect for many.
Although freedom is one of the big draws of the freelance lifestyle, there’s still plenty of financial responsibilities that come with it that can really eat into your time and profits.
But do freelancers really need the services of an accountant? Let’s find out.