There are some changes coming into place in the accountancy sector next year, which will initially affect all VAT registered business above the VAT threshold in April 2019 and in April 2020, all other businesses.
HMRC are introducing a scheme called Making Tax Digital (MTD) next year. With MTD they will be requiring all VAT registered businesses to make quarterly submissions of their accounting figures from April 2019. Clients will need to hold their accounts in digital format to meet submission requirements.
We have spent a lot of time looking into software which will make it easier to do the bookkeeping and will not result in extra time being spent each quarter doing the bookkeeping and meeting the reporting requirements. We want you to focus on running your business rather than doing bookkeeping and worrying about the paperwork!
The software we have decided on is Xero. It is a software which is easy to use and is automated. You are able to connect bank feeds so that data is automatically downloaded and imported into the software ready to allocate to an income or expense category. It also has an artificial intelligence system where it learns as it goes along. You can set bank rules to automate the allocation process.
These are very exciting times, as this software will make your business much easier to run with regards to the bookkeeping and running the business overall. It takes bookkeeping a step further than just doing basic bookkeeping. Please see the videos below (they are only a few minutes long):-
As mentioned, Making Tax Digital applies to all businesses that are VAT registered from 1st April 2019. Your manager will be contacting you during the year with regards to ensuring that you are using accounting software that is MTD compliant.
You are welcome to call your manager on 01484 723783 if you would like to get started on Xero straight away.
For our clients with a high volume of purchase invoices we are also using AutoEntry. Here’s a link to a brief introduction