There is perhaps no sector growing as fast as software development. Whether we are talking about websites, mobile apps or artificial intelligent (AI), the software is where all the biggest investment is being made.
Fintech is a great example, with blockchain and cryptocurrency platforms, stock trading apps and smart banking apps being released by the dozen, and it is software developers who are building the platforms we use.
The biggest challenge facing software developers is how to find investment, and how to manage accounting and cashflow in a way that enables operational flexibility. Developers need cash to operate and deliver a product.
Software developers also need a business plan and good advice on the financial side of things. It isn’t enough to be savvy.
This is where an accountant comes in. An accountant for software developers is invaluable because they can help with the following aspects of your business:
An accountant will handle your tax affairs for you. Your corporation tax and all filing duties will be handled on your behalf. This means you will only have to pay a tax bill, rather than communicate with HMRC and mess around.
An accountant will also identify tax-saving opportunities within your software development business. They can also help free up cashflow.
Do you have time to keep your own books? Do you have time to manage the bookkeeping software that has become so popular?
Most software developers don’t have the time and employing someone to run a finance department is a waste of resources. It’s more economical to hire an accountant to handle this side of the business for you.
PAYE and VAT
An accountant will handle your PAYE scheme for you and process your VAT receipts. This administration can be costly if you do it in-house and eat into your resources. It is better to outsource it to a reliable accountant.
Company secretarial services
Most software developers do not have the luxury of a dedicated company secretary unless they scale up to become an agency.
The good news is you can get this service from an accountant. Secretarial duties like the preparation and filing of annual returns, the preparation of company documents, and the preparation of minutes and resolutions can be done for you.
Most software developers do not have the time or expertise to handle their company secretarial and taxation duties. The most economical solution is to use an accountant who understands the structure of your software company.
Sterling Finance has been providing services to the software development businesses since 1999 and we proud ourselves on the knowledge and experience gained through the process.