5 Reasons why Making Tax Digital will actually be good for businesses
Making tax digital (MTD) is coming and businesses are going to have to do it. Yes it means sending into HMRC information on a quarterly basis and yes you have to keep records digitally but let’s see this as a positive change to your business.
If you keep your bookkeeping up to date then you won’t have a problem submitting the information required under MTD. As Software will be there to do the submissions for you, then actually, the main issue is keeping the records up to date.
Software now will do this in a far quicker way than ever before so it needn’t take you that long, in fact you will actually save time on bookkeeping. So complying with MTD will actually save you time!
By keeping things up to date you are less likely to forget to claim business expenses back – e.g. that taxi fare from your business meeting or that ink cartridge you had to buy. With modern software such as QuickBooks you can take a picture of every receipt you get and upload it straight into the system. So complying with MTD will save money!
Using accounting software means you are less likely to make mistakes in adding up columns or accounting for unusual bank entries. If you don’t make mistakes then your accountant has less to correct and therefore can spend more time advising you on how to improve your business. So complying with MTD will give you more value for money from your accountant.
If your bookkeeping is up to date then you will be able to see real time figures for your businesses performance. If you can see how the business is performing you are better able to make informed decisions which can improve the profitability of the business. So complying with MTD will actually make you more money!
If your records are all kept up to date, you will be able to get your annual accounts produced much sooner than you do now. By doing this you can then find out what tax you have to pay well in advance of when it’s due. So complying with MTD will actually help you plan your cash flow
Chiks are able to advise on a whole host of solutions if your businesses books are not yet digital. Get in touch today to find out more.