It all started with HMRC’s Making Tax Digital (MTD) initiative. As the government tries to modernise the tax system, improve accuracy and streamline processes, the roll-out of MTD for VAT has spurred many businesses to move their accounting away from manual record-keeping and PC based systems to using accounting software – not just for VAT. HMRC will continue the phased rollout of other elements of Making Tax Digital over the coming years.
So, are there benefits to using online/cloud accounting software?
In general, businesses using cloud accounting software will be able to speed up several processes, bookkeeping actions and also improve management information. There are lots of types of software and packages available that help with regular processes such as payroll, expense management and invoicing. But some packages could also help with business management such as cashflow and forecasting.
Incredibly, there are over 400 software solutions listed on HMRC’s website and while many will complete the essential functions and all will adhere to the current MTD requirements, its necessary to find the right software for your business. Each business will have unique requirements, including functionality, cost, future-proofing and also integration with other systems.
MTD for corporation tax is expected after 2021 and HMRC will likely start to introduce real-time reporting on transactions too, to it’s vital to think long term when selecting your software.
As accountants, we work with several software systems with our clients and can provide advice on what system might best suit your business. Having effective software solutions can help you to save time and money.
If you think cloud accounting software could help your business then get in touch.