Accounting software could help firms pay their taxes

Prue Watson, an FSB spokesperson, has advised small business owners that they should consider investing in accounting software if they do not already use it.

It can be time consuming, costly and difficult for companies to deal with tax matters if they have to rely on manual systems. Ms Watson explained that businesses can easily become distracted by tax at a time when they should be concentrating on getting their company back on an even footing after the recession.

Accountants will be aware that the deadline for completing self assessment tax returns is drawing ever closer and completing these returns can be complicated. Ms Watson urged small business owners to maximise time through time management and one way to do this is through the use of accounting software. She also reminded people to sign up with HMRC in plenty of time because anyone who fails to submit their return by January 31st will automatically incur a £100 penalty, even if no tax is due.

The National Audit Office recently said that accounting software could have saved taxpayers as much as £1.4 billion worth of penalties as a lot of financial mistakes would have been avoided.

A lot of small business owners may baulk at the idea of forking out for expensive software but with the growing popularity of cloud computing, online accounting packages have become much cheaper and are easy to use.

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