How Online Accounts Programs Can Simplify Your Taxes and Save You Money

How Online Accounts Software Can Save You Time and Money

When I first started to run my own business, I really didn’t give too much thought to the idea of setting up an online accounting system to help with paying my taxes. All I really wanted to do was get out there and make some money! So, I just stuffed all my receipts in a drawer, kept a record of what I was earning and that was about it.

Then came the time to submit my first tax return! What a nightmare it proved to be. As I began wading through all my receipts and invoices for the year, I realised that if I’d have just set up some sort of system to help me organise my accounts as I’d gone along, things would have been much, much easier.

How Doing My Accounts Online Made Life MUCH Easier!

Life got much easier when I started to take care of my business accounts online. Online accounting software providers like Xero make the whole process of small business accounting simple and straightforward. These systems allow you to input your expenses and record your receipts on the go, so that you don’t end up with a drawer full of receipts to try and make sense of at the end of the year. You can also send and receive invoices by email quickly and easily, and even receive payment via their integrated payments system.

Another handy feature is that it is very easy to see how well your business is performing month by month, as there are handy charts and graphs available to help you track your progress. You can also create important finance reports for your business, so that you can quickly and easily see where changes could – or need – to be made.

One of the most useful features that I’ve also made use of recently is the fact that you can connect your PayPal and other bank accounts to the software, so that any transactions are imported automatically! I can’t tell you how much time and hassle this has saved me as I run quite a lot of my business through PayPal.

How Using an Online Accounts Program Saved Me a LOT of Money

Using an online accounts program has also saved me a lot of money on accountant’s fees. Instead of paying an accountant a small fortune at the end of the year to sort out my mess and take care of the – let’s be honest – quite simple procedure of inputting all my receipts and invoices into a computer, I can now easily do this myself in just half an hour or so a week (if that) through my online accounting software. Nowadays all I have to pay my accountant for is to draft up a final report and submit my tax return, as I’ve done most of the ‘hard’ work for him throughout the year. I could submit my tax return myself, of course, which would save even more money, but I think it looks better to lenders when you want to borrow money if you’ve had your accounts signed off by a certified professional accountant.

I Only Wish I’d Done It Sooner

When I look back, then, my only regret is that I didn’t sign up to an online accounts program sooner. When I think of all the time I wasted wading through those piles of receipts and invoices, well let’s just say I’m glad those days are long gone!

If you want to try out an online accounts program yourself, then you can Try Xero for free using this link.

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