Contracting is a fast-paced environment that requires a great deal of hard work and good organisational skills.
In addition to the lifestyle benefits that being self-employed brings, there are significant financial rewards to be made from this type of work, which is why so many choose to give up pay-as-you-earn (PAYE) employment and enter the world of freelancing.
Finance is a particular subject that consumes a large portion of a freelancer’s schedule and includes calculating your tax obligations, claiming expenses, and most importantly, how you get paid. There are ways to significantly reduce the time spent on your finances.
Online accounting is becoming a very attractive option for contractors who are looking to maximise their income by operating through a limited company.
This fresh, modern approach to accountancy offers a great way to save time alongside a high level of professionalism, eliminating most of the hassle of running your own business.
Reliability – is it safe?
Specialist accountants for IT contractors will go out of their way to ensure that all client information is 100 percent secure. Software is put in place to ensure that only the contractor and the team dealing with their finances have access to their data.
Another reason why so many contractors are choosing to use web-based accountancy firms is the fact that they provide reliable, qualified accountants at such a reasonable price and can provide guidance on IR35 legislation, end-of-year tax returns and ensure you remain tax efficient.
If numbers are not your strong point, organising PAYE, national insurance and corporation tax can be more difficult than it seems. Any errors could lead to costly penalties being incurred from HM Revenue & Customs.
A good online accounting service will allow a contractor to generate all their relevant financial information (eg. invoices and expense claims) immediately through a web-based application.
Not only is it easy to upload your information, the accounting service will calculate what you have to pay in light of your tax obligations.
Focus on your work
Online accounting offers contractors the chance to dedicate more time to their clients and their current work obligations. The significant reduction of administration allows freelancers to operate more efficiently and it also means you can prioritise other aspects of your day-to-day work.
A new way of doing things
Many old school contractors may believe that the face-to-face approach is still the best way to go when it comes to dealing with business, but with the level of contact that email, telephone and Skype all allow, the modern freelancer can get by just fine without this.
Not only does this save time but an online accountancy platform can actually give you more flexibility when it comes to your finances, as you can access them 24 hours a day, 365 days a year.
If you pick the right accounting service, access to a dedicated accountant will be included, meaning you have a direct contact for help and guidance when it comes to your limited company finances.
This article was written by Boox, a firm of online chartered accountants