Companies that use Liquid Accounts’ cloud accounting software will benefit on January 4th as their systems will already be registering the rise in VAT to 20%.
The system is hosted online and is updated centrally to ensure that users are always up to date with the latest rates providing continuity for clients.
When VAT rate changed to 15% in late 2008 many businesses were disrupted as they waited for vital updates to their accounting systems. This caused problematic bottlenecks in many finance departments and also issues with VAT being invoices at the incorrect rate.
Liquid’s award winning cloud accounting system provides users with peace of mind that all updates happen in real time, with no disruption to service with no software upgrades required or outdated versions.
Liquid’s MD, Matt Holmes commented: ‘This is one of the big advantages of using one of the newer online accounting software packages like Liquid Accounts. Any changes to tax rates or payroll can be updated centrally, at the appropriate time, by us, and then they are automatically available for you to use, with no hassle and no added cost, the next time you login. We know that when the previous Government reduced the VAT rate to try and boost the economy, some traditional desktop software companies took 2 weeks to notify their customers of the changes that they would need to make to their software, and then they had to pay to make those changes.’
Similarly online accounting solutions like Liquid Accounts that include payroll as an option will also be able to deal with the announced increases to the personal tax allowance and new national insurance exemptions designed to encourage new businesses, and boost employment.
Matt said: ‘These are great benefits to new and small businesses. Over the last 18 months things have been pretty tough for business owners and many have struggled to survive, but at least these changes will make it easier for them to employ people and keep their workforce happy. Coupled with this, online accounting solutions like ours also can offer cost and efficiency savings, and help them keep control of their company finances on a day-to-day basis. They also tend to be more flexible than traditional accounting software and allow you to add on extra modules and functionality as an when required, from payroll, to stock control, to sales and purchase order processing. This means that again, they can be tailored to your company and needs and will automatically be updated when rules and regulations change.’