Cloud-Based Software & Using Online Accountants

Running your own business is fast-paced, complex and often stressful when you’re spinning so many plates at once. Staying on top of your finances is more crucial than ever, particularly as your business grows.

Traditional accounting methods, with their piles of paperwork and dated processes, can no longer keep up with the demands of modern businesses. This is where cloud-based accounting and online accountants can revolutionise the way you manage your finances.

By leveraging cutting-edge technology and professional expertise, these solutions offer a seamless, efficient, and cost-effective approach to accounting. Whether you’re a small business owner looking to streamline operations or an entrepreneur seeking better financial insights, understanding the benefits of cloud-based accounting and using an online accountant could be the game-changer you need.

With Making Tax Digital coming into play to submit your tax returns to HMRC digitally, using innovative tools can transform your business, ensuring you stay ahead of the curve in an increasingly competitive market.

What is Making Tax Digital

Making Tax Digital (MTD) is an initiative by the UK government aimed at transforming the tax system to make it more efficient, effective, and easier for taxpayers to get their tax right. The primary focus of MTD is to digitise tax records and submissions, reducing errors and making the process more streamlined for both individuals and businesses.

The objectives of MTD include:

Digital Record Keeping:

Businesses and individuals must maintain digital records of their tax affairs. This includes using compatible software to record income and expenditure. It also means you don’t have to keep all of your physical receipts and print outs; everything can be stored online.

Quarterly Updates:

From April 2026 if you have an income of over £50,000 annually, from self-employment or property rental, instead of submitting an annual tax return, you need to send quarterly updates of their income and expenses to HMRC.

End-of-Period Statement:

At the end of the accounting period, self-employed businesses like you will submit a final declaration to confirm the accuracy of your quarterly updates and make any necessary adjustments, helping you look over the year’s finances and give you insight into your finances going forward.

HMRC Approved Software:

Taxpayers are required to use HMRC-approved accounting software that can directly communicate with HMRC’s systems, ensuring that records are kept up to date and submissions are made digitally. At Gorilla Accounting, we use FreeAgent, which comes as standard as part of all of our all-inclusive accounting packages.

Will using an online accountant improve my bookkeeping?

Keeping track of your finances is so much easier when you do it digitally. Here are a few reasons why using FreeAgent and an online accountant at Gorilla Accounting can help you with your bookkeeping and tax submissions:

Reduce Errors

By using digital tools and software, it can reduce the number of mistakes made in tax returns, which can result in a fine.

Efficiency and Transparency

The tax submission process becomes more efficient by streamlining the process of record-keeping and submission. This also provides more transparency for both taxpayers and HMRC.

Better Tax Compliance

MTD encourages timely and accurate tax reporting, improving overall tax compliance and reducing the tax gap.

When do I need to be compliant with MTD?

As of April 2022, MTD for VAT was applied to all VAT-registered businesses. The next roll outs of the Making Tax Digital initiative are:

April 2026: MTD for ITSA

MTD for Income Tax Self-Assessment will apply if you have an annual self-employment or property income of more than £50,000.

April 2027: MTD for ITSA

MTD for Income Tax Self-Assessment will apply if you have an annual self-employment or property income of more than £30,000.

Using an Online Accountant

At Gorilla Accounting, we’re on hand any way in which you want to contact us, whether that be over the phone or via email. Our modern, digital approach means the majority of our clients like to get in touch with us on the go, so having a dedicated accountant who knows you and your business is the perfect way of communicating about your finances.

Gorilla Accounting is a forward-thinking, technology-driven specialist accountancy firm. We’re experts in accounting for limited companies, freelancers, contractors, landlords and sole traders, and we keep everything simple, straight-forward, and jargon-free.

Our accountancy packages are tailored to your needs, and each include FreeAgent accounting software. The cloud-based software offers benefits including streamlining invoicing, enhanced security of data, time savings and improved collaboration.

Benefits of Using Online Accountants

Expertise and Professionalism:

Gorilla Accountants provide professional expertise and advice, helping you navigate complex tax regulations, financial planning, and compliance issues. We’re on hand whenever you need us and have a Client Service Guarantee, meaning if you get in touch with us by any means before 3pm, we’ll make sure we get back to you that day or we’ll issue you with £50.

Cost Savings:

Outsourcing accounting services to online accountants can be more cost-effective than hiring someone in-house for your small business. Our fixed fee packages are all-inclusive, so you’ll never get an unexpected bill at the end of the month, no matter how many times you contact your accountant.

Time Efficiency:

We handle all of your routine accounting tasks, freeing up business owners and managers to focus on core business activities and you to focus on what matters – the contracts and projects you’re working on. It also means you don’t have to take home the admin work you’ve not got to during the day, giving you a greater work/life balance.

Advanced Technology:

Online accountants often use advanced accounting software and tools, providing clients with accurate and efficient services. We love partnering with FreeAgent to ensure all of our clients’ finances are kept organised and up to date. FreeAgent is easy to use and accessible, meaning you can access it anywhere you are.

Customised Services:

Our accounting packages are fixed-fee for all, but we recognise that everyone’s circumstances are different. We offer tailored services to meet the specific needs of a business, whether it’s bookkeeping, payroll, tax preparation, or financial planning. Your dedicated accountant will have knowledge of your industry and get to know your business.

Compliance and Accuracy:

Our professional accountants ensure that financial records are accurate and compliant with relevant laws and regulations, reducing the risk of errors and penalties.

Switching to Gorilla Accounting

Whether you already have an accountant who you work with and you’re looking to switch, or you’re at the stage of self-employment where you need some help with organising your finances, signing up or switching to Gorilla is so easy.

We keep up with any changes to do with your tax compliance so you can trust Gorilla Accounting with your bookkeeping and finances.

If you’d like to work with us or you have any queries, reach out to a member of our expert team by calling 0330 107 9670 or request a call back when it’s most convenient for you. We’ll look forward to hearing from you and discussing your needs!