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Accounting software options for Making Tax Digital

Posted on 14 Nov 2018 - Making Tax Digital

Clients use a wide range of different software, some very simple and some very complicated, for running significant multi-site operations.

Some businesses like to keep on the latest version of their software all the time – others only like to upgrade every few years. 

To check if your software will be compliant speak to us and we can help determine this.

The last few years have seen significant developments in terms of the availability, capabilities and affordability of digital accounting software. This in itself has no doubt contributed to HMRC’s move to MTD. Certainly a number
of the accounting software providers, including Xero and QuickBooks Online, have been working closely with HMRC to ensure that their digital offering meets the needs of their users and that it will be compliant. For the many Sage 50 users, the latest version of the software will meet MTD requirements. However, those who are not on the latest version will need to upgrade.

With the introduction of MTD, now might be an ideal time to review your accounting software to see if your current provider is still the best option for you. A lot of businesses are seeing significant advantages of moving to cloud
based software – live bank feeds, apps on phones to raise expense claims, automated credit control and more detailed departmental reporting are just some of the features that cloud software users are enjoying.

How can Making Tax Digital help you and your business?

For most UK businesses, it won’t make any real improvement. If you already keep tidy computerised records there is little change.

If you currently keep your records in a carrier bag until the end of the year, keeping your records up to date  quarterly, and on accounting software, will encourage tidier record keeping and potentially you will remember to claim more expenses if you do it quarterly rather than annually.

Using computerised accounting systems instead of spreadsheets also enables you to make better use of reporting to understand your figures more, keep on top of debt collection and plan cash flow. These are benefits of  accounting software rather than MTD itself – but all positive things for UK small businesses.

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