What Is Traditional Accounting?

Traditional accounting is the accounting method used in which you include income and expenses that were billed or invoiced in the accounting period that you use to file your tax return. This is called the matching concept or accrual accounting. It can have many pros and cons in UK SMEs. This means you will have to pay tax and national insurance whether the client pays you or not, and  you may need to calculate accounting adjustments such as:

1. Commercial debt
2. Commercial creditors
3. Accumulation
4. Advance payment

Should You Use Traditional Accounting To File Your Taxes?

When filing your tax return, you can choose to use accrual or cash-based accounting. Cash-based accounting means you only include business income and paid expenses during your accounting period. You can only use one method per tax year. You can switch from cash accounting to traditional accounting between different tax years.

However, you must use the same type for each full accounting period and have a reason for making the change, such as using tax losses. If you want to convert between the two, you'll need to make sure to adjust the numbers you report on your tax return. This is to ensure you don't double-count or miss your income and expenses. It can have many pros and cons in UK SMEs

Introducing Crunch Accounting

Established in 2007, Crunch may be a cloud-based bookkeeping arrangement planned for little businesses, new businesses,  entrepreneurs, and freelancers. It is only available in the UK. Crunch allows up to ten clients per organization.

Crunch permits clients to send solicitations, record costs, and see their accounts anytime, anywhere. The software can create VAT  and corporate tax returns on the user's behalf and help prepare annual returns and self-assessments. The integrated payroll function allows users to pay themselves and their employees as well as export pay slips.

Crunch support includes FAQs, forums, knowledge base, online support, phone support, and video tutorials. It also offers unlimited support from dedicated account managers and accounting teams. It can have many pros and cons in UK SMEs.

Crunch Online Accounting Software:

1. Completely free accounting for limited liability companies:
2. From £75.50 + VAT per month. Accounting for sole traders:
3. From £24.50 + VAT per month, We will never charge customers on paid plans extra to speak to our accountants, and all your submissions to HMRC and Companies House are included in your paid subscription.

Crunch Accounting vs. Traditional Accountants

When starting your own business, you may be confused with all the different accounting terms and tax requirements. This is why most choose to use crunch accounting vs traditional accounting. Transferring responsibility to someone else can feel liberating. But that's not always the case, and any mistakes you make can leave you more stressed and having to clean up. So why not learn more about your finances and take control of your accounting while saving money using crunch accounting vs traditional accounting? All of this is possible when you choose Crunch to support you and your finances.

In this article, we will break down all the differences between online accounting software, like Crunch accounting vs traditional accounting firms. So you can make the most informed decision that is best for you and your business. It can have many pros and cons in UK SMEs.

Know Your Obligations

With a traditional accountant, you can stack those invoices and receipts until the end of your fiscal year and then send them off. For some people, this may be a simpler option. But this means you won't know how much corporation tax you owe and how much dividends you might receive until your year-end accounts are complete. This could cost you a large sum of money without any preparation.

If you use accounting software and services like Crunch, you can display your accounting information directly. You'll be able to find out your obligations, such as what corporation tax you owe and how much you can pay yourself in dividends, without having to wait until the end of the accounting year. Just update your Crunch account with your finances, and you'll have all the calculations at your fingertips. You can then use this information to create a monthly savings plan for the amount you owe to avoid last-minute lump sums.

If you subscribe for a fee, you'll get access to our Ask an Accountant service, where licensed accountants can give you tailored advice based on your accounts without having to pay an extra fee. The service is also available to customers who sign up for free for a  one-off flat fee of £24.50 + VAT. In this crunch accounting vs traditional accounting crunch wins.

Fees Are Transparent

When studying traditional accounting, you will often see a lot of hidden costs. This is because fees are often set on a per-client basis, so each client may pay a different rate for the same service. With Crunch, this does not happen. We are upfront about all costs, and you will not be charged more or less for the amount of detail involved in your accounting.

According to research from Household.co.uk, the average price a traditional accountant typically charges is between £25 and £50 an hour for simple advice, but if you need specialist services such as financial and commercial consulting, the price may be much higher. expensive from £125 to £150+ per hour. These hourly rates add up quickly and play a significant role in rising costs.

With Crunch, there are no hourly fees  - you can spend as much time as you want to talk to our Crunch experts and get tailored advice and technical discussions without having to worry about adding fees to your services. In this crunch accounting vs traditional accounting crunch wins.

Accounting Services

Accounting services are one of the most expensive accounting services if you don't do it yourself. With Crunch software, accounting is done for free by business owners through bank reconciliation. Of course, many business owners don't have the time to do this or have more important tasks that need their attention. But if you regularly update your account, the job will become easier and faster to complete.

Additionally, a huge benefit is that you will save costs. A traditional accountant typically charges £40 or more per hour for just 50 transactions per month, but for  500 to 1,000 transactions per month, costs can range from £300 to £500 per month. In this crunch accounting vs traditional accounting crunch wins.

A Simple Monthly Plan

Crunch offers a monthly payment service to split your accounting costs. There are many different packages to choose from to find the one that best suits your type of business and accounting requirements, from independent startup clients to established businesses with more than two directors. Know how much you're paying for our services and have full control over the features you need.

Get unlimited support from our experts and access to fully trained accountants, plus our transparent all-in-one software package. Neither traditional accountants nor other online accountants, such as Xero or QuickBooks, offer this service.

Discover The Difference

Get everything you need to handle your accounting work in one place while saving money. Do you want anything else? Never worry about accounting when you have unlimited support from our team, who are always ready to answer all your questions, no matter how big or small. Feel confident about your monthly expenses and finances when you can see all this information in real-time in your Crunch account anytime, anywhere.