As a contractor, you may be using an online accounting system to manage your finances. But did you know you may be able to integrate your invoicing system with your bank account? Here are five reasons you should…
When you integrate your invoicing system with your bank account, every invoice you send out and every payment you receive will be properly accounted for.
There’s no way you can forget to include a certain payment in your self-assessment, since all payments will be combined in your final report.
Additionally, you won’t be able to receive payments without having them show up in your accounts.
This means it will be much harder to make mistakes that could come back to haunt you if officials think you’ve made them on purpose.
Most accounting systems that let you integrate your invoicing system with your bank account will let you use that data to create your self-assessment returns each year.
Your income and expenses will be combined and the amount of tax you need to pay will be provided.
This is much easier than taking on the self-assessment process by yourself, and again helps prevent mistakes.
Analyse your finances
Keeping track of your finances is vitally important for contractors, so it makes sense to integrate your invoicing system with your bank account. You’ll then be able to track your financial situation through an easy-to-use interface.
This should help you better understand your current cash-flow. You’ll also be able to keep tabs on who’s paid you more easily.
If you work with several clients, it’s often easy to let payments slip past their due date.
Safe access for accountants
Many contractors engage an accountant to manage their finances, and it’s often more convenient to work through the cloud than by meeting face-to-face. After all, the information the accountant needs will already be collected online.
Many people feel uncomfortable giving their banking information to somebody else, even if that person is a registered accountant.
If you integrate your invoicing system with your bank account, you provide a way for your accountant to view your financial information without having direct access to your bank account.
Perhaps most importantly, integrating banking with invoicing is straightforward.
It might sound like the sort of task that requires computing wizardry, or knowledge of the ins and outs of online accounting.
However, most accounting tools follow a simple process that can be completed both quickly and easily.
Once you’ve set the system up, you don’t need to do anything else. All future transactions will show up on your online interface to be noted and tracked accordingly.
Summing up – key reasons to integrate your invoicing system with your bank account
If you integrate your invoicing system with your bank account, you’ll make keeping track of your finances much easier.
Or, to make things even easier, get in touch with us today to find out how we can give you specialist help.