Limited Company Contractors Can Benefit From Open Banking
Open Banking is set to modernise bookkeeping for limited company contractors, with banking data integrated directly into online accounting software.
Umbrella.co.uk's limited company contractors all use FreeAgent’s cloud accountancy software to simplify their accounting. And with FreeAgent on the forefront of the Open Banking changes, bookkeeping is about to get even easier.
Open Banking is set to roll out to all FreeAgent customers soon, so we thought we would take an in-depth look at the changes and how they can benefit limited company contractors.
What is Open Banking
Open Banking was introduced by the Competition and Markets Authority (CMA) to make sure that people get the best possible service from their bank.
The CMA noticed that banks were holding on to a lot of information about peoples' bank accounts, but weren’t doing enough to innovate and create exciting new financial products that could help people.
Open Banking means that - if they have permission - major banks have to share a customer’s bank account information with regulated businesses.
This opens up the possibility of software companies creating a whole new range of innovative financial tools, services and products that can benefit banking customers.
For example, with Open Banking, FreeAgent customers will now be able to import up-to-date information from their business current account directly into their FreeAgent account.
For security, all of the businesses that use Open Banking protocols are regulated by the Financial Conduct Authority and information can only be shared when the bank has permission from the customer.
What are the benefits for limited company contractors?
With Open Banking, FreeAgent offers limited company contractors a high level of integration between their bank and their accounting software.
This will eliminate a lot of the manual work involved in managing accounts. It will also make it easier to access banking data and stay on top of bank reconciliations.
It will also improve the contractor-accountant relationship, making it easier for an accountant to stay on top of your business financials and freeing them up to concentrate on adding real value for your contracting business.
And this is just the start. In the future, we can expect to see more exciting products and features that are enabled by FreeAgent’s participation in the Open Banking scheme.
Want to get going with Open Banking? Speak to a member of the team today to find out how you can get set up on FreeAgent. Call: 0800 121 6513.