Making Tax Digital (MTD) will, for many businesses, require the implementation of new software and systems. This can seem daunting and many such endeavours find themselves doomed to failure due to a number of common mistakes. Avoid these pitfalls though and changing systems can bring efficiencies and revolutionise your business.
The starting point for implementing any new system should be working out what you want to achieve. Is it just about becoming MTD compliant or are there other benefits that can be derived from the new system? Draw up a list of the features you want from the new system and rank these from essentials to ‘nice to have’. Remember, this is your opportunity to redefine how you work from the ground up. Consider the reporting tools that could help you manage your business more effectively and remember that any system should have the flexibility to adapt with your business.
Make sure that your employees are committed to what you are trying to achieve. I have seen countless situations where a business owner has a clear plan, only to have it undermined by employees or bookkeepers resistant to the new systems. Remember that people are naturally resistant to change, but if they can understand and buy into the change the chances of success are exponentially greater. Find a key employee that can act as a ‘champion of change’ and act as an example to others
It can be tempting to plough straight ahead, but waiting until your accounting year end or VAT quarter end is always preferable. If your business is subject to peaks and troughs, pick a period where you are most likely to have the time to dedicate to the process and ensure that any past failings don’t become embedded in the new system.
Don’t skimp on training. There really is no substitute for experience. A good accountant will be with you at every step of this process. They will discuss your requirements, identify issues you may not have thought of and be able to suggest a range of options and add-on software that can produce a system that lets you take control of your business.
Get in touch with Richard for advice in implementing new software ahead of Making Tax Digital and to discuss your training requirements.Contact Richard
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