Introducing MTD and Cloud Accounting
Cloud accounting has seen a huge increase in popularity over the last year or so as it has the potential to transform the way you run your business. With the Government’s plan to make digital record keeping compulsory for most businesses over the next few years there has never been a better time to review your options. We feel now is the perfect time to make sure as many of our clients and contacts are aware of the benefits these products can bring; over and above traditional desktop packages and the traditional spreadsheet.
The main driver behind this uptake in cloud based accounting software, aside from the efficiencies that they can offer businesses, is the Government’s Making Tax Digital (MTD) initiative. MTD will require businesses to keep their records digitally, and submit their financial data on a quarterly basis as well as annually, meaning they should never be left with unexpected tax bills.
Starting from April 2018, unincorporated businesses, partnerships and landlords with turnover greater than £85,000 will need to keep their records digitally and report quarterly. By 2020 all but a select few businesses will need to comply with MTD including limited companies. This extra compliance however doesn't have to mean a significant increase in cost.
If you already use a cloud accounting package, then MTD will not make much difference to you, most likely just an extra button to press every three months because you will probably already keep your records up to date, and your provider will automatically make sure your package is MTD compliant. If on the other hand you use traditional desktop software such as Sage 50 or Quickbooks, spreadsheets, or indeed a manual system to record your financial information then you will probably need to upgrade. These MTD changes provide a perfect opportunity to make sure your existing package is still the most suitable for your needs and is competitive against other products in the market
Harris+Co have partnered with a cloud accounting provider that we feel provides excellent value for money, a straightforward user experience, and easy to interpret data for business owners. This software is called Kashflow and is owned by a very long standing accounting software provider based in the UK that we also believe in. In fact we trust them to support our practice software needs. Have a look at the short video below to see for yourself. I highly recommend viewing the case study videos too.
Jon Taylor @Harris+Co and @Linkedin is our specialist on cloud accounting and Making Tax Digital, and would enjoy a conversation with you about what the options are.
There are many providers of cloud accounting software in the market, such as Xero, Freeagent, Sage Online, Quickbooks etc; all of which are very capable products and should be considered in addition to Kashflow when deciding if now is the right time to benefit from everything that cloud accounting can offer.
You can expect a cloud package to streamline the following:
- Importing bank data removing the need to enter it manually into your records
- Set rules to automatically post many of these transactions to an appropriate category for you
- Email sales invoices seconds after finishing a job, fully branded with your logo
- Automatically email late payers with reminders about their overdue invoices
- Have your cloud accounting package email you when your supplier invoices become due
- Keep you up to date with your VAT liabilities as soon as you enter each transaction
- Provide cash flow projections based on your unpaid purchase invoices and outstanding sales invoices
- Gain access to your records anywhere in the world on any device without the need for an IT expert