Rapid Reckoning Limited

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Rapid Reckoning Limited registered in England and Wales, company number 07086684, registered address

1 Green Acre, Aldershot, Hampshire, GU11 3JL        © Rapid Reckoning Limited 2018

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Online accounting software

Small businesses are increasingly being attracted by the benefits of online accounting software. This is an example of “cloud computing” or “Software as a Service” (SaaS). Instead of installing software on your own computer, you simply access your accounts using a web browser from any computer. You can even use a tablet or smartphone. What are the benefits?

• View and update your accounts from anywhere with an Internet connection.
• No operating system compatibility issues (e.g. Apple users).
• No need to do backups and updates.
• You own the data but can make it available to colleagues or your bookkeeper or accountant.
• You can do some of the work yourself and have your bookkeeper or accountant help with the more complicated entries.

Online accounting software is generally very user friendly. It is designed for people who are not trained accountants or bookkeepers. It normally operates on a pay-monthly model with a free trial period which reduces up front costs and the financial risk involved.

Examples are KashFlow and Xero.

About one third of Rapid Reckoning’s clients use online accounting software. It is not the best solution for all businesses but we can advise on whether it is suitable for you and help you to transfer to it.

Getting paid step 1; issuing invoices

If you are selling goods or services on credit, the first step to getting paid on time is to issue an invoice. Issue it as soon as you can and avoid giving the customer any excuses to delay payment! Make sure it includes the following information.

• You and your customer’s correct names and addresses.
• An invoice number.
• The date.
• A description of the goods or services supplied.
• If you have been given a reference such as a purchase order number, put it on the invoice, especially when dealing with larger organisations.
• Payment terms. If you want to be paid straight away, say so!
• Your bank account details and the name that any cheques should be made payable to.

Make sure also that the arithmetic is correct!

If you are VAT registered, you must follow HMRC’s rules on what constitutes a valid VAT invoice. They are quite detailed and there are some things in there that may surprise you. For example, did you know that there is a 30 day time limit for issuing VAT invoices? Click on the following link for HMRC’s guidance.

HMRC guidance on VAT invoices

What is the difference between bookkeepers and accountants?

Bookkeeping is “the skill or occupation of systematically recording financial transactions”. It is the record keeping that goes on throughout the year.

Accountants, for small businesses at least, will generally focus on the once-a-year work involved in preparing annual accounts and tax returns and on providing advice in areas such as reducing tax and structuring the business.

On this page

Online accounting software.

Getting paid step 1; issuing invoices.

The difference between bookkeepers and accountants.

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KashFlow online accounting software

Rapid Reckoning is a member of the KashFlow Affiliate Programme. This means that, if you sign up through us, you may get a reduced monthly fee for 6 months, depending on the plan that you choose. Click below to find out more about KashFlow and to register for a 14 day free trial.

KashFlow online accounting software.