New (tax) year, new you?
If cumbersome spreadsheets or your current accounting software aren’t quite cutting it, April happens to be the best month of the year to try a new accounting system. Here’s why - and how - you can give your finances a fresh start this spring.
1. A new accounting year begins in April
The new accounting year is the point where accounts from the previous year are being finalised and you’re starting fresh for the new year.
For many limited companies, 1st April is the start of their new accounting year. For sole traders this is often 6th April. For all businesses 6th April marks the start of a new payroll year.
2. A new accounting year = a fresh start
At the start of a new accounting year, the amount of information you need to input into a new accounting system is much less than at other times in the year. Rather than manually importing lots of old bank statements and invoices, you can just input a few summary figures. For example:
- your accounting dates (e.g. the date your business started trading)
- how much your business owned and owed as at the end of the previous accounting year (e.g. how much cash you had in the bank, what your customers owed you, what you owed to your suppliers etc.)
- your VAT registration number, if you’re VAT-registered. If you’re midway through a VAT quarter in April, you’ll need to provide just a couple more details on this too
3. FreeAgent is the freshest start of all ✨
FreeAgent’s award-winning accounting software is designed with freelancers, contractors and small businesses in mind. A whole host of friendly, intuitive - yet super smart - features can help you:
- make admin easy with invoices, expenses and projects
- relax about tax with built-in Self Assessment and VAT filing
- spot performance trends with insights and accounting reports
- stay connected with bank feeds, integrations and the FreeAgent mobile app
Disclaimer: The content included in this blog post is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this blog post. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.