There’s no question that the introduction of Making Tax Digital (MTD) is changing the compliance landscape for accountants and their clients. And that means accountants are playing an even more important role in guiding businesses through the changes.
Having the right software in place at the right time is key to Making Tax Digital (MTD) success – for both accountants and clients. After all, more frequent return submission means more information to process and a more significant workload, and the right technology helps keep processes efficient, profitable and secure.
Making Tax Digital (MTD) requires a dramatic shift in how accountants and their clients process financial information – both mindset and operations need to change to make MTD work in an efficient, profitable way. It’s time to shake off the shackles of being chained to legacy systems in a time where digital taxation is innovating to keep pace with other industries revolutionised by tech.
Welcome to the first article in our new series – answers to questions accountants often ask us about Making Tax Digital (MTD). This first FAQ is one of the most common, especially given that VAT is going digital starting in April 2019.
From all the industry discussion and HMRC guidance, we know that MTD needs to be a collaboration between accountants and companies. After all, accountants are reliant on regular data from clients, and there needs to be ongoing communication to comply with more frequent submission requirements.
Making Tax Digital is not far now...
There’s now less than a year to go until businesses above the VAT threshold will need to start keeping their accounting records digitally and submitting their VAT returns using MTD-compatible software.
With the help of advancing technology, accountancy firms and other modern businesses can afford to focus some of their attention on streamlining their operations, with the aim of providing a more efficient service to increasingly expectant clients.
As a modern accounting firm it’s likely you’re under pressure to regularly alter your practices in order to keep up with your competition. If you’re still relying on traditional manual methods of managing your clients’ accounts this could be a time consuming and potentially expensive undertaking. However, if you embrace web based accounting software it’s possible you could ensure you keep up with your rivals while simultaneously future proofing your business.
The accounting industry is evolving all time, but while this means greater value for clients it can mean an increase in problems and hurdles for small and medium sized accounting firms hoping to keep up with their competitors or meet the growing number of compliance standards required by external bodies.
The accounting industry is quickly being transformed by the creation of new accounts software and specially designed bookkeeping tools. However, many of these innovations are aimed at making accounts easier for small businesses and self-employed workers who need an easy solution for a single tax return rather than for accounting firms.