Codestone

Category: Accounting and Financial Software

Small businesses that invest in accounting software will find it easier to assess their tax status at the end of each year.

Bonnie Lee, founder of US-based financial adviser Taxpertise, has reminded smaller firms of the need to keep on top of their tax management and financial reporting on a constant basis.

She told business website Entrepreneur that investing in accounting software can therefore be a preferable alternative to collecting a "shoebox full of paper receipts".

"As an entrepreneur, part of taking your business seriously is to keep records that inform your financial position," she noted.

Ms Lee added that it is also important for small firms to examine their bottom line profits and losses annually in order to take stock of how the company is evolving.

Earlier this month, the Forum of Private Businesses reminded companies that their accounting software may need to be updated to reflect the imminent rise in VAT, which comes into effect on January 4th 2011.

Posted by Victoria Browne