Digital Accounting – What next?

Digital Accounting

Throughout much of last year we have been advising our clients that Making Tax Digital (MTD) is coming.

Now that we are in 2019, there is going to be less talking about it and more action, as MTD comes in from April this year. With businesses above the VAT threshold needing to keep digital records and this could apply to all businesses from 2020. With businesses updating HMRC quarterly for their corporation tax, Income Tax and National Insurance obligations digitally. It is a significant change for many and means the end of the annual tax return with all your information stored in one place.

This change in the way HMRC wants information from tax payers means that you may need to move from your existing desktop or manual record keeping and onto an online accounting package.

The good news is there are many options available to you and we are certified in the installation and operation of many online accounting software services, which are all digitally compliant and specifically designed for small and medium sized businesses.

Digital accounting software has significant advantages over the traditional ways of bookkeeping including:

  • Seeing a clear picture of your current financial position, in real-time
  • Having your accounts 100% online, so there’s no software to install and everything is backed up automatically. Updates are free and instantly available
  • Avoid upfront accounting software costs – upgrades, maintenance, system administration costs and server failures are no longer an issue
  • Have your bank feed your data directly into your accounts on a regular basis;
  • Take a photo on your phone of a purchase invoice and it was posted automatically
  • See who owes you money, who you owe and your business bank balance 24/7, 365 from your phone!

 

How do you make the change?

As quickly as possible! All we need is a commitment to change and we will take you through a step by step process, which means you will be up and running in no time and we can assist you to:

  • Extract your existing data and upload this to your new digital accounting software
  • Link your accounts to your bank account
  • Enable Apps to your phone or tablet to let you work “on the go”; and
  • Demonstrate the system and show you how to get the most from your accounts

 

Please get in touch to allow us to find the best solution for you and to help you with this transition by calling us on 0161 249 5040.

 

Useful links from HMRC:

https://www.gov.uk/guidance/agents-use-software-to-send-income-tax-updates

https://www.gov.uk/guidance/help-and-support-for-making-tax-digital

https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat