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Why it’s time to reconsider digital accounting

11th Sep 2017
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Are you the type to start queueing for the latest iPhone the day before its release, barely able to contain your excitement? Or maybe you are more likely to reach for a notepad and pen than a laptop?

Whether you are an early adopter of technology or you are still clinging to your parchment and quill, Making Tax Digital (MTD) is going to affect us all. Of course, none of us knows exactly how it is going to affect us and there are as many questions surrounding the MTD initiative as there are answers. One thing is certain though: we’re all going to have to get digital.

 

Are your clients MTD ready?

You may well have had clients asking about MTD already. Some will be worried that it's going to mean a heavier workload; others are worried they're going to end up paying more tax -- but the biggest fear for many is the technology issue.

Every business will have to use some form of digital accounting to be MTD compliant and the majority of small businesses simply aren't ready for the change. Given that a whopping 65% of small businesses are going to have to adjust their accounting processes, 23% are using manual records and 16% are still using the shoebox method, there is a lot of work to be done.

If you are already using digital accounting software with your clients, that's great! You’re ahead of the curve, and becoming fully MTD compliant shouldn't prove too tricky. But if you haven't yet been sold on the idea of using digital software, it’s time to join other accounting firms in looking into your digital options.

 

The benefits of digital accounting.

Even without the advent of the MTD initiative, introducing digital accounting to your work processes can be a huge boost to your practice. While many clients are still behind in their own bookkeeping practices, they want you to be up to date with the latest technology.

Just like the rest of us, they want working with their service providers to be seamless and simple. In the context of accounting, that means they want to be able to access their accounting records online, from multiple devices, and they want to be kept in the loop without having to take time out of their busy schedules to call or email their accountant.

 

How to choose the right accounting software for you.

Are so many options out there and you want to be sure that you are choosing the best one for you and your business. So, what should you be looking for in a great MTD-compliant software system?

 

Secure information sharing.

One of the things that people fear most when it comes to the Internet and new technology is the security of their information –– and this goes double when it comes to money matters.

Your clients will be reassured if you choose a software package that takes security seriously. You want to be sure that your data won't be hacked or compromised and that everything is constantly backed up so that if your computer crashes, your data is safely stored on a secure cloud server.

 

Efficient invoicing.

If we counted the hours spent creating, sending and chasing unpaid invoices, it would be terrifying.

It makes sense, then, to choose a digital accounting system that simplifies the entire process. Clear Books™ allows you to create branded invoices easily and let clients settle their invoices using your preferred payment method, at the touch of a button.

It also makes it easy to see which invoices have been paid and which are outstanding and customers will be sent automatic reminders if they don't pay within the stipulated timeframe. Plus, your invoices will always be there, ready and waiting for you to complete your VAT report. And speaking of VAT...

 

VAT returns made easy.

You can save yourself a headache or two by choosing a system that makes submitting your clients' VAT returns a breeze. Clear Books™ allows you to generate, store and submit VAT returns directly to HMRC.

You can compare the various VAT schemes and calculate which will be the most cost-effective for your customers.

The software is fully compliant with VAT MOSS invoicing and, for your construction industry clients, you can verify subcontractor details directly with HMRC and even prepare and submit contractor CIS returns online.

 

Support and training.

If you’re brand new to using digital technology in your accounting practice, you will want to choose a company who knows how to support its user community.

While our software is very intuitive and easy to use, we appreciate that digital accounting will take a few of you well out of your comfort zone — we don't want to leave you out there all on your own!

Clear Books has an active community forum, which you can use to ask customers and Clear Books staff for advice and support on getting the most out of the software.

We also have a UK-based telephone and email support system you can use if you have any additional questions. If you prefer a more personalised approach, we can arrange to come to your offices to deliver a training session tailored to your specific business needs.

 

Making Tax Digital doesn’t have to be scary.

In fact, it can be an amazing opportunity. Sure, no one likes to be forced to do things before they’re ready, but the fact is, implementing digital accounting now will benefit your practice in a number of ways. You’ll be able to communicate better with clients, offer a slicker service and save them some money too.

Happier clients; happier accountants. Talk about a win-win!

 

Don't just take our word for it; try a free Clear Books trial today!

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