The HMRC is not usually a business owners’ best friend, but the pain of changing your systems to comply with the latest Making Tax Digital (MTD) initiative comes with a number of very real long-term benefits.
Here are our top 4 reasons to be cheerful about MTD (no this is not an April Fools Article):
1) Greater Efficiency & Accuracy
There are some brilliantly designed, easy to use accounting software solutions now available to support HMRC‘s making tax making tax digital requirements. Once you and your team get over the learning curve and teething problems, your back office will be significantly more efficient, allowing you to focus more of your time on your core business.
The HMRC have created this Stakeholder Communications Pack which helps translate the advantages, key messages, software requirements to businesses who in-turn can pass on this knowledge to their own stake holders.
2) A More Up to Date Picture of Your Business Performance:
The discipline of more regular book keeping reduces the lag time for production of both management and formal accounts. This will provide you with a much better handle on ongoing real-time business performance. This allows much better decision making, based on how your business is running right now, rather than 3 or more months ago.
3) Super Ease of Access:
The cloud based digital solutions offered by the major accounting software providers make this new real time accounting picture available to you from anywhere with an internet connection.
4) Inspiration for Improvement Elsewhere in Your Business:
This mandatory change will do you a favour in the long-run by highlighting that new technology and better systems really can streamline your business and should encourage you to look carefully at where other existing systems can be improved.
If you have any thoughts or questions then come along to our Facebook Page to discuss them with other like minded business owners and Rockstar Retirees where you can receive support and advice. We also like to hear how you are getting on with MTD and any tips you may wish to share!