In our recent newsletter you will have read all about Making Tax Digital (MTD) and quarterly reporting to HM Revenue & Customs. HMRC are expecting most businesses to do this via cloud software, as it is expected that nearly all businesses will gradually switch to using this method of keeping records.
Changes to HMRC’s plans for MTD
The latest Finance Bill being rushed through Parliament before it adjourns for the General Election has, however, delayed the introduction dates for quarterly submissions. This is welcome news as neither HMRC nor software suppliers were likely to be ready for the planned initial implementation in April 2018.
Many of our clients are already happily using cloud software, while a few have tried it and not liked it! Most are unsure about whether they should be using it or not, or whether their existing software or spreadsheets will be good enough.
HMRC have recently acquiesced to the argument from advisors that many small businesses wish to remain with spreadsheets and they have undertaken to make this possible by using an interface for digital reporting.
Cloud software is not just about MTD
However, cloud software is not just about MTD, it is a very easy and useful method of keeping records, particularly for small businesses. The cloud is a platform to make data available anywhere, from any device, rather than a hard drive on your computer. It also means we can log in to assist clients whenever needed. The software is usually paid for via a monthly or yearly subscription.
We can help with cloud software
There are many brands of software, and we have previously told clients about Kashflow, which we can set up trials for and can be accessed via our website. We also have plenty of experience with Freeagent, Xero, Quickbooks online and SageOne, and are accredited Accountants for these. Many of these have been doing a lot of advertising recently.
The advantages, as well as the freedom to log in where you want, are that bank transactions can often be fed straight into the software so that all is needed is to allocate them to the correct category, rather than typing them in.
We are happy to assist in training if you believe that this may be the way forward for you!
Larger businesses that have been using software for many years can also take advantage, although some may prefer to stick with what they have for now, as some of the cloud applications still have restrictions compared with traditional desktop packages, such as Sage, although these are undergoing developments.
Would like any further information on bookkeeping or cloud software
Contact us straight away by telephoning 01932 564098 or email us using our ‘Contact Us’ page.