Recently The government announced that they remain committed to the rolling out of Making Tax Digital (MTD). However the timing of when businesses are effected has been pushed back. The draft legislation to implement the change is expected to be published shortly.
What does this mean to your business?
If your turnover is above £85,000 you will need to ensure that your accounting records are “digital” starting from April 2019, and then only to meet VAT obligations. Businesses will not be asked to keep digital records or update HMRC quarterly for other taxes until at least April 2020 (the original dates had implementation from April 2019. However, it will be coming!
Many of our other clients are already making the change to digital accounting using MTD-compliant software and what we’ve found so far is that our cloud based accounting package, Xero, is proving to be very popular. (Although we can work with any cloud accounting software)
So, I thought I would outline some of the benefits of changing the way you keep your records, and harness the power of the cloud.
Xero allows you to:
- Categorise transactions from your bank account directly, most banks have the option of automatic feeds. This means that if you put cash into your bank account on a Wednesday, then that transaction is pushed through to your cloud accounting system, and is available to post the next day, giving you almost real time information;
- Use your smart phone to photograph expenses and have them filed straight into your accounts;
- See your results 24/7 via an app on your phone, if you have an internet connection, then you have access to your accounts;
- Create quotes and sales invoices easily; and automatically send them out via email.
- Throw away all the paper you currently keep on file!
We are Cloud Accounting specialists and promise to help you make the transition to Digital
Accounting as straightforward as possible.
If you would like a free demonstration of Xero, and what it can mean for your business then please let me know.
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