Making Tax digital – What will the future bring?

The government announced on 13 July 2017 that Making Tax Digital will commence in April 2019 for all VAT registered entities with a turnover above £85,000. Vat registered businesses with turnover below this amount will not be required to use the system but can choose to do so. They will also be able opt in for other taxes, benefitting from a streamlined, digital experience.

 Making tax digital will extend to other areas of tax for example,  self-assessment tax returns  in April 2020 . This gives you two years to adapt to the change of reporting digitally,

 Challenges you may face:

  • Converting manual records to digital version
  • Converting spreadsheets to recognised book-keeping software that will link direct with HMRC
  • Upgrading old software that will not be compatible
  • Adapting bespoke software
  • Cost of doing the above
  • Time processing

How can we help

  • Assisting in selecting the correct software for you
  • Implementing the software
  • Provide training initially and as and when required
  • Take the headache away and provide a full package

Finding clarity in the cloud

There’s little doubt that the digital revolution has provided businesses with more opportunities than ever before.

However, technology has also placed a bewildering array of apps, tools and processes at our fingertips.

That can be off-putting for those businesses still to take advantage of “the cloud” – the virtual network of computer services accessed through the internet and providing infinite possibilities.

Thankfully, it is possible to find clarity in the cloud.

At Pierce, we work with businesses varying in size and sector so we understand that every business is different.

Having been previously offered a one-size-fits-all package, many local businesses I have spoken to have been reluctant to adopt the online approach.

Unlike some accountancy specialists, who only supply one option when it comes to cloud-based bookkeeping packages, we find the best fit for our clients from one of five suppliers: Xero, QBO (Quickbooks Online), FreeAgent, Kashfolw and SageOne.

Choosing the right package enables us to select a service that is tailored more specifically to businesses’ individual requirements.

Cloud accounting is already providing benefits for hundreds of Lancashire businesses that previously relied on office-based systems, including:

  • Streamlined processes: cloud accounting software can extract key information from bills, receipts and invoices and publish the data to your accountancy software.
  • Increased accuracy: eliminating the need for manual data entry reduces the risk of human error.
  • Convenience: systems can be accessed anywhere and anytime if you have an internet connection. This provides both businesses and employees with flexibility as you are no longer tied to an office.
  • Up-to-date: through cloud accountancy, you no longer have to update your computer or network. The system automatically updates in line with the latest regulations, so businesses can be rest assured that they are fully compliant.
  • Secure: cloud accountancy services have been designed to be highly secure, preventing the risk of data being breached.
  • Communication: the system allows continual communication between the business and their accountant. This means that any financial problems can be detected and prevented before they arise.

Technology is constantly evolving and my advice is to speak to an expert who will help you demystify cloud accounting, providing a clearer view of the difference it could make to your business.