Now that spring has officially sprung, it’s almost time for a new tax year. Whether you currently use spreadsheets, or a desktop or online accounting system, if you’ve been thinking about making the switch to a better system then a new tax year is the perfect time. Here’s why the first week of April is the best time to move to a brand new accounting system.
A new accounting year begins in April 2017
For many limited companies, 1st April is also the start of their new accounting year, for sole traders this is often 6th April, and for all companies 6th April marks the beginning of a new payroll year. The new accounting year is the point in the year when accounts from the previous year are being finalised and you’re starting afresh for the new year.
Less work for you if you switch now
At the start of a new accounting year, the amount of information you need to input into a new accounting system is much less. You can just carry over a few summary figures for example:
- your accounting dates
- how much your business owned and owed as at the end of the previous accounting year - for example, how much cash you had in the bank, what your customers owed you, what you owed to your suppliers, and so on
- if your business is VAT registered, then your VAT registration number
If you’re midway through a quarter in April, you’ll need these plus just a few more details.
Here’s a handy video about switching your accounting software in April:
Why choose to switch to FreeAgent in April?
- It’s tailor made - FreeAgent is specifically designed for the needs of freelancers, contractors, small businesses and their accountants
- Expenses are a breeze! You can snap receipts on your phone and send them straight to FreeAgent
- FreeAgent gives a live view of business cashflow by connecting to your online bank accounts and importing transactions into your accounts
- Tax time isn’t stressful for FreeAgent users - you’ll always know what you owe, and FreeAgent files VAT and Self Assessment directly to HMRC for you with a simple click
- FreeAgent helps you get paid quickly by sending recurring invoices automatically and nudging late-paying clients with automated reminders
- The dashboard view shows how your business is doing at a glance, so you can plan ahead and forecast what’s coming up
FreeAgent offers a free 30-day trial, so get ready to make the most of the new accounting year in April and give it a try!
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.