Making Tax Digital begins in April 2019 and many businesses will have to fundamentally change the way they maintain their financial records. The days of keeping manual records - or a vast array of spreadsheets - are disappearing. Similarly, leaving everything to the last minute and retrospectively “writing up your books”, or collating all your invoices and bank statements for your accountant in time for your tax return deadline, are gone!
I understand the pressure this will put on businesses from the clients I work with. I also understand the challenges that many businesses are facing as they adapt to a new way of working, learning to use new software and overhauling their financial record keeping. However, there will be benefits for all businesses when they come out the other side of this transition:
A cornerstone of Making Tax Digital is the recording of transactions digitally on a real-time basis. Although this may at first appear to be an admin burden for smaller businesses, it also provides business owners with valuable up to date financial information, allowing you to manage your profitability and cash flow closely, avoiding nasty surprises and ultimately make more money.
For those businesses that opt to work closely with their accountant, a real time, cloud based accounting system, such as Xero, allows your accountant to have instant access to the same information as you. This results in seamless collaboration and better financial advice for your business when needed.
Using all the great features of cloud based accounting packageslike Xero, business owners can save precious time, allowing you to focus on what matters to your business. Some of the time saving features available within these cloud based systems are:
Using a cloud based system to comply with Making Tax Digital is unlike traditional desktop software that is installed locally on one computer. With a cloud based system, this can be accessed via any web browser. This allows you the opportunity to access your online account from any location – providing there is an internet connection – and equally important, offers you access to your information from a laptop, tablet or smartphone via browser or app. Having this facility at your fingertips provides the opportunity to make quick business decisions and react quickly to issues arising.
The unappreciated benefits of Making Tax Digital can be harnessed to grow your business and make more money. We have a dedicated Onboarding Team who can get your business ready for Making Tax Digital and make the change to your systems as easy as possible.
Contact our dedicated Onboarding team who can help you get your business ready for Making Tax Digital and make the changes to your systems are easy as possible.Contact our Onboarding team
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