What Are the Best Accounting Options for My UK Business?
Finding the right accounting solution is crucial for every business. Accurate accounting ensures filing of accounts to Companies House, as well as your company tax return to HM Revenue and Customs (HMRC), is significantly easier. There are many ways to do your company accounts, how do you choose?
Finding the right accounting solution is crucial for every business, as you need to ensure that your figures are accurate. This makes the filing of accounts to Companies House, as well as your company tax return to HM Revenue and Customs (HMRC), significantly easier. There are many ways to do your company accounts. With so many accounting options, how do you choose? We’ve put together a list of different ways business owners, big and small, can get their accounting taken care of.
Excel Sheets vs Cloud Accounting
Excel sheets are a good option for small businesses to keep track of transactions, but they are stored locally. Cloud accounting could be your best bet if you’re growing your business and have more financial responsibilities.
| Excel Sheets | Cloud Accounting |
|---|---|
| Performing accounting tasks on an Excel sheet is great for small businesses, as it allows you to keep track of your business transactions. | Cloud Accounting is a better option for companies that are expanding, as they have to handle more business transactions and other tax issues. |
| You can store your company data in an excel sheet in a structural manner such as formatting your data and linking worksheets together, while storing the data locally. | You can access your accounts through the internet. That means you can check your accounts remotely at any place and time, making it convenient. |
| The Excel sheet allows you to input your own formulae so that when you calculate your total amount, it will be automatically tabulated for you. | Cloud accounting enables you to manage your company’s payroll and tax responsibilities, handle multiple bank accounts, and even file PAYE to HMRC. |
Types of Accounting Software
Xero, Sage, and Quickbooks are three popular types of accounting software that each offer distinct features and tools for managing finances. Your business needs and size will define which option is right for you.
| Xero | Sage | Quickbooks |
|---|---|---|
| Xero is perfect for companies that are looking for simple and fuss-free accounting software. | Considered one of the most popular options for accounting software. Sage is designed to help businesses manage their invoicing, cash flow and payroll. | Quickbooks accounting software is useful for managing VAT and payroll, among other accounting tasks. |
| The accounting software is fully integrated with third-party payroll applications. | The accounting software is able to automatically calculate your taxes and submit VAT returns to HMRC, saving you unnecessary time in poring over your books. | You may integrate the accounting software with third-party applications. |
| If your business focuses on selling products, Xero has simple inventory management, which you can use to track the movement of your goods and your stock levels. | You can receive live support from experienced accountants who can advise whenever you are unsure about other accounting matters. | As your business grows, this software enables you to scale upwards. That is why it’s commonly used among accounting professionals. |
Traditional Accounting Service Provider vs Software as a Service
Traditional accountant services often use desktop software, making it difficult for business owners to get a real-time picture of their finances. However, Software as a Service (SaaS) is accessible from anywhere and automatically processes and updates your information in the cloud.
| Traditional Accounting Service Provider | Software as a Service (SaaS) |
|---|---|
| Most traditional account service providers use desktop accounting software, even though some have moved towards using other cloud accounting systems to remain relevant. | Software as a Service (SaaS) accounting software is gaining popularity among businesses for its accessibility. You can check your company’s accounts anytime and anywhere in the world. |
| Accounting staff usually have to sort out your data manually, which means there is a chance for human errors. Likewise, their responsiveness may not be consistent or time sensitive. | Cloud accounting software takes care of the IT aspects of your company. Each time you key in the data, it will be automatically processed and updated in the software. So, you don’t have to worry about the delay in processing. |
| There might be a possibility of data breaches when it comes to traditional accounting service providers. | Your financial data will be kept secure. Instead of storing them in an office server, the data will be held in a cloud and encrypted. That means only authorised personnel can access this sensitive financial data. |
Integrated accounting services at Osome
- At Osome, you get the best of both worlds when it comes to accounting. Advanced software + expert accountants means = financial admin, done. Our integrated accounting service offers one place to track all transactions, connecting your marketplaces while reconciling payments.
- We take the stress out of filing taxes and everyday accounting. Our app service provides an accountant for you at any time of the day, adding a layer of flexibility every business owner needs.
