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.
Depreciation – What is it?
The literal meaning of depreciation is the reduction that an asset undergoes in terms of its value over a period of time. This is particularly related to the wear and tear of the asset. In accounting, depreciation is one of the most important phenomena when it comes to calculating the value of an asset. Depreciation, in accounting, is a method where the cost of the asset is allocated over the time it would remain useful. Businesses need to depreciate their tangible fixed assets for accounting and tax purposes.
For those of you who don't think it's important to hire an accountant to manage the future risk of your business in today's difficult economy, Capium would like to let you know that you are sadly mistaken.
The change that we all saw coming for the past decade or so has finally happened; annual tax returns will soon be a thing of the past! What's that you say? We don't have to file our taxes anymore? Do we still have to pay taxes or are they going away as well?
The days where an accountant would spend countless hours filing paperwork, creating payroll sheets and analyzing them until the wee hours of the morning are long gone. As technology and automation work together to help today's accountants become more efficient, more effective and, of course, much more punctual, accountants seem to have it easy. Sure, they still shoulder the brunt of a company’s financial stress and one small error could lead to a much larger headache later on if left unnoticed, but cloud payroll technology is certainly paving the way to make the life of an accountant much easier than ever before.
Corporation tax isn't as complicated as many people think and having a full understanding of it is important if you want to take full advantage of it and follow the regulations set forth. First, you have to understand that, unlike a sole trader or a partnership, a limited company is the only business that pays corporation tax rather than paying income and capital gains tax and it is payable on the net profit of the company.
To properly utilize a cloud accounting service, a business owner must first understand just what cloud accounting is and how it can help him or her achieve their business goals. To put it very simply, cloud computing refers to any transactions you perform over the internet. You don’t need your own server, nor do you need to buy any expensive software. Cloud accounting is sold by a provider that uses remote servers and, for a fee, will grant you access to these servers and their software so your business can manage and maintain your finances.
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Recurring billing is billing that happens more than one time on a cycle, usually on a weekly or monthly basis. Utility bills are an example of recurring bills. Recursive Invoices and Expenses are very much beneficial in saving time. It’s an Automated Process that uses control systems to control processes, reducing the need for human intervention. You can make error free data entries. It is fully controllable and provides security, ease of use, energy saving, faster decision making, better quality control, greater precision, increased productivity and high efficiency.