Contractor Cloud Accounting Software

Contractor Cloud Accounting Software

3 November 2015

If you are a contractor or freelancer the most tax efficient way for you to work is often through your own limited company. This allows you to benefit from the incentives offered for setting-up and running your own business and hence allows you to maximise your earnings after tax.

It also enables you to develop and build your business & brand and potentially in the future employ others.

The downside of this is that there is more responsibility on you as a director of your own limited company and there are statutory requirements re maintaining financial records, preparing and submitting year-end accounts, corporation tax returns, personal tax returns, payroll and managing invoicing & payments.

The GOOD NEWS is this shouldn’t put you off running your own limited company and the benefits greatly outweigh this additional responsibility.

Firstly, there is excellent cloud accounting software available to contractors and freelancers which makes the weekly routines easy for you to manage or outsource to your accountant.

Secondly, Umbrella Accountants LLP are also there to work alongside you as your contractor accountants and we can act on your behalf to do the year end accounts, PAYE & VAT returns and Corporation tax returns for you.

We are there to ensure you have accurate and real time information available to ensure money is set aside for future tax liabilities; we highlight and help you meet key deadlines and the cloud accounting software clearly highlights all this information in an easy to use dashboard.

How does Cloud Accounting Software help Contractors?

  • It’s easy to use and highlights all key dates, information and who needs to pay you or be paid.
  • All you need is a device with an internet connection and you can get tasks done in free periods during your day. Raise an invoice while at your client’s, take payment and it is all reflected immediately in your accounts. Take advantage of gaps in your day to get admin done rather than waiting until you’re home and taking your free time.
  • If you get an expense receipt take a photo and upload it immediately. No more worrying about where you put it. You can even discard it once loaded. Add-ons are available that will even read the receipt and post it for you.
  • Cloud Accounting Software can automatically download your bank receipts and payments daily and will post items automatically it can identify.
  • All your data is safeguarded for you externally. No back-ups required.
  • All software is managed for you meaning no uploading software on your computer or having to run updates.
  • Real time information enables you to know how much you can draw and still have enough aside to meet your liabilities. No more worrying about tax.
  • By enabling you to do the simple tasks your accountancy costs will be lower.
  • Enables you to simply benefit from the Flat Rate VAT scheme.
  • Unlimited users (including your accountant) being able to access simultaneously.

Which is the Best Cloud Accounting Software for Contractors?

Most cloud accounting software offers similar features but at Umbrella we primarily use Freeagent Accounting Software as this was developed with contractors & freelancers in mind. It’s aim was to demystify accounting and we believe it does.

In addition to FreeAgent we also have many clients who use Xero Accounting Software. This is now the Number 1 provider of Cloud Accounting Software in the UK with over 100,000 subscribers. Xero’s big selling point is the number of add-ons available which can help you run your business more efficiently. Being a contractor though a large number of these aren’t necessary and are geared towards larger small/medium sized enterprises.

Sage One is the cloud offering from Sage and is also preferred by a number of our clients.

Other Cloud Accounting Providers include: Quickbooks, Intuit, Freshbooks, Sage Live, Crunch, Kashflow, Liquid Accounts, Just Accounts  and IRIS.

Whichever your preferred provider we can provide the accounting support you need.

Umbrella Contractor Accountants can discuss running your own limited company and demo the accounting software available.

We can provide a full pay illustration showing your potential earnings from running your own limited company.

Please call the Team on 0800 121 6513 or email: team@umbrella.co.uk