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Should you Switch Your Accounting in the New Tax Year?
by Startacus Admin
Our friends over at Freeagent (who wrote us a valentines day song, see below) have been supporting Startacus the last while with their handy online accounting software.
So when we watched their explainer video on why you might want to switch your accounts at the start of the new tax year, we thought it only right to share the love back. Over to Chief Accountant Emily Coltman FCA of FreeAgent to explain all...
The new tax year provides the perfect opportunity for small business owners and freelancers to take a fresh look at how they manage their bookkeeping and make some positive changes for the year ahead.
FreeAgent’s Chief Accountant Emily Coltman FCA explains why is now such a great time to make a switch...
‘For most sole traders and many limited companies early April is the start of a new accounting year. That means that this is the point in the year when accounts from the previous year are being finalised and you’re starting afresh for the New Year.'
‘So, crucially at the start of a new year the amount of information you need to input into a new accounting system is much less. At the start of a new accounting year, instead of importing many individual transactions you’ll be able to take the closing balances from your previous accounting year and use these as the opening balances for your new year. At the end of an accounting year the details of your closing balance should be readily available from your accountant or from your existing software system, if you’re using one.’
Why switch accounting at the start of tax year
FreeAgent explains Why switching accounting at the start of tax year might be a good idea
But there are other benefits of switching now than just the simplicity of getting the numbers you’ll need. For small businesses with employees, the new payroll year starts on 6th April, making it the simplest time to switch.
Now for a bit of fun – watch the valantines video they made for Startacus!!