Choosing accountancy software for your practice

Accountancy software for your interior design practice can save both time and money. It will allow you to keep track of invoices, manage cashflow, and more easily complete VAT and tax returns, among other things. You can pick software that’s appropriate to the size of your business and it’s generally straightforward for non-accountants.

Where to start when you’re choosing accountancy software

To be able to pick the right product for your practice, begin by deciding on the features the software needs to have to make your business life easier.

These might include bookkeeping, cashflow and budgeting, management reports, being able to complete tax and VAT returns, and managing payroll for employees. If you purchase materials in different currencies, software that is set up for different currencies should also be part of your criteria. Making a list of what you need will help when comparing the software options available.

Accountancy software should allow records to be kept as long as the law requires. It should also create an audit trail. Make sure it can be linked to your business bank account to save time and effort as well.

It’s also important to think about how simple a system you need. If your business is small, ease of use is likely to be paramount. If you employ a bookkeeper to manage this side of the business, additional features might be useful.

Additionally, it’s worth discussing your proposed purchase with your accountant if you employ one to be sure you can provide them with what they need.

Accounting software options

It’s possible to go for an online service, or install accounting software within your business. The former is now extremely popular, but do be aware that it is cloud based, so the data is held remotely. You should therefore be sure that the provider encrypts and protects data, and you should also make back-ups.

It’s worth taking a look at the following providers:

QuickBooks is a popular online accounting software option. It offers features such as invoicing, payroll, expenses, cashflow insights, VAT and tax software, and there is a choice of products to pick from including those for the self-employed and small businesses, as well as for those who need additional features.

Sage is another cloud-based software solution with offerings targeted for small businesses and medium businesses to select from. If you run your practice alone or have a small number of employees, the small business option automates bookkeeping, allows you to control cashflow, track taxes, and more. For medium-sized businesses, Sage offers a more sophisticated software option.

Crunch also offers accountancy and tax software packages in a range according to business size and for sole traders and limited companies. Both its Pro and Premium options provide accounting software, invoicing, expenses records and tracking, and HMRC registration and VAT filing, and can be connected to your business bank account, with the Premium version including additional features.

Xero also has a huge number of subscribers and provides a range of plans that include features a sole trader or new business might need; a more sophisticated offering for the next stage of a small business; and one for established businesses of all sizes.

To use online accountancy software you’ll need to sign up to pay a monthly subscription, which might be somewhere in the range from around £12 to £35 a month. When selecting, look for the level of support that’s offered to ensure it suits your skill and experience level.

Be aware of the making tax digital programme

Making tax digital (MTD) is a government programme that is changing the way the tax system works, digitising the system for VAT, self assessment and corporation tax. Opt for accountancy software that is compatible with MTD. Although it doesn’t endorse any products, HMRC does have a recognition process and you can search for MTD for VAT software that has been through this process.

Find discounts for accountancy software

The government’s help to grow: digital scheme can allow you to buy software for your business including for digital accounting at a discount of up to 50 per cent or £5,000. It’s a UK-wide scheme for SMEs and aims to help them boost business performance by embracing software and digital ways of working. To be eligible both the business and you as an applicant need to meet certain criteria including that your interior design practice needs to be UK registered with Companies House, have traded for over 12 months, employ one to 249 employees, and you must be purchasing the approved software for the first time.

Selecting the right accountancy software

Good accountancy software can make running an interior design practice easier and needn’t prove a costly investment. What’s vital when you’re choosing a package is to consider the features that will save time and effort for the stage and size your business is currently and will be easy to use by you, and perhaps employees, too.