We do confirm, however, that although the majority of the work we do includes the use of computers there is very much a human aspect at IJC Finance. We use our experience and know-how alongside our software solutions to support our clients and keep them up-to-date with their finances. Not everything can be replaced by a machine and we wouldn’t want it to be that way, but we keep up with the advances in technology and use it to enhance the customer experience.

 

When we say going digital with your numbers, what we mean is using accounting software instead of pen and paper or spreadsheets. Here are some of the advantages in using software, for you and for us.

 

Even the less tech-savvy among us should find software a breeze, as the two cloud-based systems we use (Xero and FreeAgent) have been built for micro to medium businesses – and of course we can help you select the right one for your business. They are designed to be user-friendly and offer step-by-step guides and How Tos in the support and knowledge base sections of their main websites. The interfaces are intuitive and if there are any questions then the team at IJC Finance are also fully trained and certified and can help you in the right direction.

 

If using spreadsheets alone – or worse still, nothing to record your numbers (!) – you are missing out on the features offered by accounting software that help save others time and effort in keeping your finances up-to-date and organised. Both our software options include access to auto-extract technology for receipts and invoices to speed up the recording of purchases, and you have the ability to raise invoices and quotes for customers and email these directly from the software without the need for copying and pasting into a word document and then emailing separately… This itself can save much time and can assist with tracking those outstanding payments. You can also send chaser payment emails and statements!

 

Spreadsheets, even when designed by Excel whizzes, are prone to error. Copy and paste errors, missing rows out and overwriting formulas, or losing the whole file and receiving those dreaded “corrupt file” messages can all be disastrous. Our software sits in the cloud and so there isn’t the worry about losing data and the concern over miscalculations is removed. 

 

We are often warned of the risks of others gaining access to our confidential data, and by using software this risk can be mitigated with the implementation of two-factor authentication (2FA). Even if you don’t use software, we would advise adding a password to your confidential and financial files and storing them somewhere secure.

 

We’re often told by new clients that in the past they’ve found it difficult to see where their business is going and how it is performing financially, and the main reason is that there hasn’t been anything available for viewing their numbers in real time. A benefit of software is that the data contained within (such as sales and expenses, customer information, assets owned and liabilities owed) can be manipulated in varying ways to produce useful reports specific to what each business owner wants to track.

 

By default the standard Profit & Loss and Balance Sheet reports will be available at the click of a button, and also real-time information on debtors and creditors and any taxes owed such as VAT and payroll taxes. Depending on the software used, we can also see estimated calculations for business income taxes such as corporation tax and Income tax relating to sole trader activities. Bespoke reports can also be produced and from this a set of management accounts (more on these here).

 

A lot of accounting software also links to third party apps offering solutions such as e-commerce sites, cashflow management, credit control, and stock management to name a few. It means that better control of your financials and metrics is within reach. We can offer advice on the best apps to use for your business needs.

 

Whilst software is something we always recommend for limited companies (due to the current reporting requirements to Companies House and HMRC), the introduction of MTD ITSA in April 2024 has sparked a fresh surge in software uptake. HMRC are changing the way and frequency it receives data from sole traders and landlords whose annual sales income is £10k or above, meaning data will need to be submitted via approved compatible software. Both Xero and FreeAgent have been preparing their software for this new requirement, and FreeAgent has recently released its landlord subscription to accounting practices as the first step in this change. 

 

 

If you are yet to embark on your accounting software journey and it’s something you’d like to get started on, please send us a note and we can help review the best solution for your business.