As of April 2013, HMRC are changing the way you submit your accounts. The hope is that the new system, known as Real Time Information (RTI), will speed up the current system, making it easier for both employers and the staff at the tax office. RTI PAYE means that you will have to inform HMRC each time you make a PAYE payment to your staff and at the exact time that you do so. For example, if you pay your staff on a fortnightly basis, then you’ll be submitting your accounts once every two weeks. If this already sounds like a time-consuming nightmare – don’t panic; there is technological help at hand.
RTI PAYE software
For employers, RTI PAYE will allow you to gain a more accurate overview of your accounts. You’ll know better just how much money is going out and, more importantly, by submitting your accounts on time you’ll avoid any of those fines associated with late submission or the costly investigations you can incur by submitting inaccurate information – especially if you invest in RTI PAYE software.
RTI PAYE software helps you turn what would be a time-consuming and expensive process into a cheap, streamlined and automated task. In essence, you’ll have a virtual accountant at your disposal, day or night, and without incurring any of the associated expenses that come with its human counterpart. HMRC aren’t able to recommend, but they do have a list of approved RTI PAYE software, including the programs offered by Intuit Pay Ltd.
Memorising where your money goes
The RTI PAYE software most widely used by businesses is QuickBooks, used by over 4.5 million businesses worldwide. Part of the reason for its popularity is that it has the ability to memorise transactions. Every business has a number of transactions that it makes on a regular basis. QuickBooks allows you to make a recurring note of these transactions, so that rent, bills, staff and client payments are all regularly recorded on your behalf, saving both time and money and increasing the accuracy of your records. It’s also possible for the program to memorise complex journal templates, such as detailed allocations, allowing you to enter the actual figures at a later date.
Loans and Accounts
A significant number of businesses use loans to help them in either their start-up phases or during periods of expansion. One of the main pitfalls for small business owners is the failure to separate the loan into its constituent parts, such as the interest and fees associated with it. QuickBooks allows you to set up a loan in accordance with its constituent parameters and generate the same accurate loan payment each month, preventing you from falling into arrears with your lender. In addition, the final figures can be submitted as part of your tax return, so that you can offset any business expenses against any tax you might incur.
RTI PAYE software is more than just a way of keeping tabs on your staff wages. It’s also a cost effective and accurate system through which you can manage your company’s accounts as a whole.
Author Bio: JonJon Yeung is a freelance writer and enjoys writing on small business tips and technology for the modern age.
New Business Tech For Accounting
