Quarterly Reporting In The Digital Age

Most businesses will soon be required to keep track of their tax affairs digitally and update HMRC at least quarterly via their digital tax account. 

This is just the latest in a series of announcements which make it clear that our government’s general policy is to shift compliance costs away from the public sector and onto the individual, and to speed up the receipt of tax payments.

Any accounts figures that are submitted under this new regime will have to be prepared and checked before being filed.

That will require someone who has the time and knowledge to make adjustments such as accruals, prepayments, capital allowances, stocks, bad debts, capital expenditure, disallowable expenses and so on – all of which have a major impact on taxable profits.

For those businesses that don’t have the in-house expertise this is likely to mean more work for their accountants, and more cost for the business.

We believe there is only one way to keep those costs to an absolute minimum and that is to invest in accounting software products which incorporate new automated technologies, thereby speeding up manual processes and reducing messy paperwork.

For example:

  • ‘bank feeds’, which mean your bank account is reconciled automatically
  • ‘receipt bank’ which allows you to scan your expense invoices onto your ledger, instead of manually inputting them

With this type of software your accounts are stored in the ‘cloud’ rather than on your own pc or server, thus facilitating:

  • access from anywhere that has an internet connection (Laptop, PC, Phone, Tablet), and by multiple users in different locations.
  • collaborative working e.g. you could be working on your accounts at the same time as us, inputting sale invoices whilst we are preparing year end accounts, 

All of the above will undoubtedly assist in complying with HMRC’s filing requirements and keep our costs to a minimum.  There is even a positive to take from imposition of quarterly filing, and that is that you could have almost ‘real time’ management accounts available to you, and that should facilitate better informed management decisions and thereby increase your businesses profitability!

Please visit our Cloud Accounting page for further information about digital filing.

Please give us a call if you would like to discuss any of the above in further detail.

 

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