Online Accounting Software
Do you need to buy bookkeeping software as well as have an accountant?
As a contractor, freelancer, consultant or interim manager either working through your own limited company or planning on going, limited you might be asking yourself if you need to purchase an online or offline accounting package as well as appointing an accountant.
The simple answer is no you don’t. We provide all clients with our own bespoke Contractor/freelancer bookkeeping software. In fact, we provide our own bespoke Contractor/freelancer bookkeeping software free to anybody, click the link to download our free bookkeeping software, why not also download our free invoicing software as well.
Online and offline bookkeeping software is nothing new, Sage the world’s largest, most used -they have nearly 6m customers and are probably best known accounts software seller (which we’d highly recommend if you’re looking solely for a bookkeeping package and our free one doesn’t meet your requirements), and has been selling packages for over 20 years. Their basic package only costs £115 plus VAT (as of 20 January 2010) and is available from most WH Smiths.
However, recently there has been a positive explosion in the bookkeeping and online accounting software market. Now remembering that the world’s largest, best known, most used only charges a one off fee of just £115 plus VAT, you might be surprised to find that some online bookkeeping software companies charge as much as £130 a month, that’s right A MONTH - not a one off fee like Sage charge but a monthly ongoing charge, every month.
Many new software packages are feature packed with pretty looking user friendly screens, a huge array of fancy functions designed to meet the needs of a one man sole trader through to larger limited company and most promise to deliver accounting and bookkeeping heaven. But before you take the plunge and set-up your direct debit, ask yourself if you really need a sophisticated online accounting package as well as an accountant. After all if you didn’t want to spend the 15 minutes a month it takes to fill out our software (not forgetting that it's free) you could always hire a local bookkeeper for just £20 a month and they’d do it for you.
Special note about the 11,000 contractors and freelancers who are clients of SJD: very few don't use the spreadsheet, so it really can’t be that difficult and time consuming to complete. We do of course, as most accountants do, accommodate clients who want to use other software packages.
So before splashing out on a highly integrated all bells and whistles online software package, lets look at exactly what you need to do each month bookkeeping wise.
Essentially, you’ll send a few invoices out, detail some expenses, run a payroll (we do this for you) and move some money from your business bank account. As we mentioned earlier, this will take about 15 minutes a month, the breakdown is as follows:
Invoicing
You’ll raise maybe one invoice a week, some do it monthly, which simply means emailing your client/agency an invoice and recording it on a spreadsheet. This will only take you a couple of minutes each week.
Expenses
As a contractor, it’s unlikely you’ll have as many expenses as the local engineering firm or a large limited company, which many of the feature rich online accounting software packages are designed for. For you it will simply be a case of recording your expenses in a spreadsheet (making sure you keep your receipts).
Payroll
You can run this yourself, however, payroll can be a bit complicated so may take you a while to complete. The best option is to get your accountant to organise your payroll (we include this within our standard fixed fee service along with everything else you need to your company and personal tax needs).
Banking
You already do this on your personal account; it simply means recording the money that comes in when you get paid by your client or agency. Unlike some companies’, payment and bad debtor days isn’t often a thing you'll have to worry about, most clients pay when they say they will.
All in all, you just have to record all these items somewhere, which is why we simply advise our clients to use the free software we have developed, it’s basic and simple to use. It’s in excel which most people are all too familiar with so it’s quite well tested, there are no macros’ or complicated equations for you to write, we’ve taken care of all this for you.
Don’t get us wrong, we don’t have anything against sophisticated, comprehensive online jazzy accounting packages, it’s just that we’re really not sure all the functionality and hugely integrated nature of them is much use to a contractor or freelancer. Sure if you’re a medium sized company with a vast quantity of invoices, customers, employees, expenses etc we’re sure these modern wonders of bookkeeping software wizardry can make the life a Payments Manager supremely easier; however for a contractor or freelancer it’s doubtful you will ever use the functionality.
Most contractors and freelancers, and we talk from experience as the UK's largest accountants for contractors and freelancers and support over 11,000 such clients, most people want dedicated help from a human being. The recording of the data is simply captured using a basic spreadsheet, therefore you don’t need to go online. You can just keep the spreadsheet on a memory stick or email it to yourself working on it when and where you like.
SJD believes that by offering its clients a dedicated accountant who is always on hand either face to face, on the telephone or over email is really what clients want. Clients want somebody to talk to, to discuss things like: what they can and cannot claim, their long term contracting plans, how expenses affect their tax bills, how PAYE and the flat rate VAT scheme can save them a fortune and what the latest advice is regarding IR35 is etc. None of this can be achieved by using a piece of online or offline accounting software even if it comes with access to an online accountant.
So back to our earlier question, 'do you need bookkeeping software and an accountant?' - sure after all you need to record your information somewhere. But as to the question 'do you need to pay for one?' - most definitely not.
You may also find our page on Fixed Fee Accountancy and our other page on Contractor accounting software helpful.
If you'd like to speak to one of our experts, call us on 0500 152500 / 01442 275789 or email michelle.turbutt@sjdaccountancy.com
About SJD Accountancy
SJD Accountancy are the UK's largest specialist provider of fixed fee, limited company accountancy services to contractors; we've been acting for contractors across the UK since 1992 and have more than 11,000 clients.
We are the only National specialist firm of accountants with offices in all major UK cities so you’ll never be far from your accountant. SJD also have more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATII, ATT, ACCA, CA, ACA, FCCA, ACMA. You’ll also be pleased to know that we are one of the lowest priced as well.
SJD have also won every relevant industry award possible, including:
- Best Contractor Accountants - Contractor UK 2011 - 2007
- Accountant of the Year - The British Accountancy Awards 2011
- Best Professional Team of the Year - UK Customer Experience Award 2011
- Customer Commitment Award - Institute of Customer Service 2011
- National Chamber of Commerce Award 2010
- Medium firm of the Year - Finalist Accountancy Age 2010
- Excellence in Customer Service - Finalists National Customer Service Awards 2009
- Sunday Times Best Small Companies - Award 2009 - 2007
- Small firm of the Year - Accountancy Age 2007 & 2004 and finalists in 2010 and all years since 2003
- Deemed PCG accredited accountants and fully MSC compliant
We offer all clients:
Free face-to-face meetings. This is another unique service, only SJD offers free face to face meetings - tax is complicated and sometimes only a meeting will do.
Unlimited access to your own dedicated accountant. No call centres, no outsourcing, no automated call handling. Simply telephone, e-mail or meet your own dedicated accountant face to face.
Money back service guarantee. All your telephone calls and e-mails will be answered the same day or we will refund your monthly fee's.
Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market.
All inclusive low cost monthly package which includes completion of accounts, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, unlimited access to your accountant and all company returns.
All this for a fixed monthly fee of £110 plus VAT, which is one of the lowest prices in the market. And most importantly, in a recent survey 98% of our clients rated SJD as 'better than other accountants' - we are working hard to convince the other 2%!
If you have any question about contracting or would like any further advice please either contact your SJD Accountant or call our new client services helpdesk on 0500 152500 / 01442 275789 or email: michelle.turbutt@sjdaccountancy.com.
Appoint SJD Accountancy and never worry about your tax or accountancy affairs again!
You may also find the following pages, guides and case studies useful:
Take home pay calculator - How much could you be taking home
Contractor FAQ - All your frequently asked questions and their answers
First time Contracting or Freelancing? - A summary of the alternatives along with pros and cons
Choosing an accountant - For a full review
Step-by-step Guide to Contracting - Download a FREE copy of our guide
Limited or Umbrella? Can't decide? - We help you decide which is best for you
Guide to Contracting - All the best guides to contracting in one place
Expenses Guide - Know exactly what you can claim
Umbrella company guide - Everything you ever wanted to know about umbrella company services
IR35 Guide - A great plain English guide to IR35.
