Making Tax Digital – Why Accounting Firms need to Move in Quickly?
A smooth business operation is as good as the accountancy and flow of cash. This has taken various meanings in today’s digital age with the need of companies to be “ Making Tax Digital ” to meet competitive business environment. An accountant’s job is that of a guardian at the steering wheel.
Advantages of Digital Accounting and Taxation
Digitization from the first step itself – invoicing to clients from vendors – ensures the right and timely records are maintained. Thus, all transactions, financial records, calculations, payments, current and fixed assets, liabilities can be stored in a spreadsheet which can be digitally utilized to link many calculations and create accounting systems around it.
Such a setup overrides any possibility of errors and omissions that might cause critical issues in the accounting flow. A software company IRIS found in a survey that convincing businesses to move to an accounting software is the biggest challenge in the roadmap for digital bookkeeping.
Complying with new laws such as GDPR and similar accounting laws is an essential aim of Making Tax Digital (MTD) which is an HMRC initiative proposed to ensure the UK tax system is effective, timely and easy for the taxpayers. With a deadline of 1st April 2019, for MTD to start filing VAT, companies and small businesses are scrambling with “interim” software to bridge the digitization.
While this has been working so far, a full-fledged automation through accounting software is not far away to achieve full scale of economies. Once the VAT filing is implemented and smoothened, the income tax and corporation tax which have been put on hold till 2020 will come in play.
How Rayvat Can Help for?
Rayvat is your wide variety holder of expertise in various accounting software – Xero – listed as one of the go-to cloud accounting systems for MTD. We will ensure to start the due diligence process in your firm’s accounting department to get it up to speed with the requirements. Our team will help sort the orderly scanning and cloud -planting of all your accounting documents.
Everyone in the company is essential to be onboard and we will help your company keep people informed and prepared about each step. Balance Sheets at the end of the year are measured by the costs. From the stages of the trial balance to the financial statements completion, our firm will provide complete hand-holding to your accounts department.
If your company is above the £85,000 VAT limit, it mandatorily falls in the category to file under these guidelines. If you are one of our existing customers already on a cloud- accounting platform or wish to consult us for the first time for your existing system, you will have the compatible functionality on your cloud. We will be happy to assist and guide you on how to work with the new features.
We will also provide a MTD guide and a task force team to help you understand the issues and future developments.
If you need help, in making your Tax Digital, kindly contact us today.