The recent announcement of several new record-keeping smartphone apps caused quite a stir. Nigel Harris takes a closer look at them.
Following extensive discussions with HMRC, a number or leading software companies recently launched simple, free bookkeeping app(lication)s for mobile phones for businesses below the VAT threshold. They are not approved or accredited in any way by HMRC, who simply say that the suppliers “have advised HMRC that they have commercial mobile applications for record keeping that meet the HMRC specification”.
According to David Forbes, one of the developers who supported the project, the apps have been designed for people that currently only fill in 3 boxes on the short-self employment pages. From a review of the HMRC specification the common features of these apps include:
- Designed for businesses with turnover under the VAT registration threshold, with built-in monitoring to warn when approaching the threshold
- Recording of income and expenditure and providing a running profit or loss balance
- Facility for construction industry subcontractors to record CIS deductions
- Use the phone’s camera to scan invoices and receipts
- Estimates SA tax liability based on income and expenditure to date
- Built-in reminders of key tax deadlines and important dates
- Links to relevant HMRC guidance and advice
- Export of data for backup or use by accountant.
Five apps are currently listed by HMRC, for iPhone and Android phones only. The last time I looked there was also a Windows Mobile app which is no longer listed.
Presentation is dictated by the platform, with Android apps looking more basic than the iPhone apps although the functionality is broadly similar. Only Forbes has links with other software; all others are standalone apps – potentially a missed opportunity, particularly for FreeAgent whose main business is a Cloud solution. I assume the fact that these apps have been put together relatively quickly, and are free, has limited their functionality.
These are the currently available apps and some noteworthy features:
Android
- Forbes Receipt Keeper Links with other Forbes software, including their tax return software.
- ZipZipBooks from Immagini I like the big green In and red Out buttons for posting receipts and payments.
Apple IOS
- Earnest from FreeAgent Enables you to distinguish between cash and non-cash trans, and you can categorise transactions and add notes to them
- MyBizTracker from Intuit
- Sage Record Keeper Extended functionality, which suggests a higher development budget. For example, when you estimate the current year’s tax you can also refer back to previous years (you can store unlimited previous tax years). Balances can be viewed monthly, and you can drill down to transaction level. Both Standard and Higher rate CIS deductions are catered for. Multiple tags or categories can be attached to individual transactions. The Sage website suggests that Android and BlackBerry versions may be coming later.
More record-keeping apps may be in the pipeline. The best way to monitor what is available is to check the apps store for you or your clients’s smartphones, or refer to HMRC’s list of record-keeping apps.
Do let us know if you have tried out any of the apps and what you think of them by commenting below.
You might also be interested in
I'm a partner with Burton Sweet, chartered accountants & business advisers, and run the Shepton Mallet office down in beautiful Somerset. Despite the name, Shepton Mallet is actually the home of Glastonbury Festival! I trained in audit and corporate tax with Grant Thornton and came to my current position in 1991 via small local practices...
Replies (10)
Please login or register to join the discussion.
how about
Expensify
And how about
Receipt Bank
OMG
It appears the data is held on the phone until the user bothers to transfer it to a spreadsheet or whatever.
Well nothing much can go wrong there then! Given the micro businesses that these are aimed at, they will of course be fully aware of the need to keep the data backed up in case their phone is lost/stolen/dropped/run over/washed/crashes/.......
HMRC will need a new piggy bank for the penatlies.
Backup
In the case of the iOS apps, the data is likely to be transparently backed up to iCloud, or iTunes whenever the user syncs.
But if it is backed up to iCloud for example, where is that data located? Is it in the USA?
Where do you stand with compliance if the data is in the US?
Thanks @carnmores & @david_terrar
Along with this article, we've got an AccountingWEB apps directory, to which we'll add your suggestion in our next update.
However Nigel's article is focused on the new batch of record-keeping apps that emerged as a result of HMRC's promptings and the specification mentioned at the top of the article.
reasonable excuse
At one of the meetings we had with the HMRC about this, I did ask if "the dog ate my phone" would be a reasonable excuse.
Easy Books started as an App for iPhone in 2009 and had all functions of an accounting software. It did cost over £5. Now it has developed into a full accounting software for Apple Mac and iPhone/iPad app is free with limited functions. I think it is very good for people on the go.
We use KashFlow and give it away free to our clients but the iPhone app is too slow and I do not find it very useful.
What we are testing
We are trailing a few of these expense trackers to use for our clients. We expect our clients can gain an extra 5% productivity from staff by using an expense tracker to build personal expense claim sheets.
The best trackers have OCR scanning and tagging, so the expense can be classified and immediately posted to an accounting application.
The challenge for many of these apps is to reliably translate the receipt description and dollar amounts. Many receipts are printed on heat-sensative paper, which does not keep long and fades over time.
We are trialing Xero Touch, CamScan, DocScan,Shoeboxed, ImagetoText, ReceiptBank, KF QuickSnap, Lemon, Abukai, Expensify, Jotnot, and Genuis Scan. we'll be publishing our findings shortly on our blog.
CashFlow
We've been using Float which helps you monitor cashflow.