Transformative technology is missing from MTD

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Like others, I am watching the MTD developments with interest. I am fortunate that they don't affect me too dramatically, as I only have a small handful of private clients to go with my industry job - but even so I still need to keep aware.

This week, I was carrying out the bookkeeping for a friend (painter and decorator). I was presented with a nicely organised file of source records, but no actual analysis.

The year's work took a few hours using my old faithful VT Transaction - which also gave me a nice printout to show the client.

However, I think it would have taken at least three times as much, if not more, if every fuel receipt had to be scanned and appended to a transaction.

Now, I don't really want to send everything to Receipt Bank - and it seems sad that everyone my end up being forced down this type of route.

Of course every transaction will already exisit in at least two electronic forms:

1) The receipt or invoice from the supplier will be recorded on their systems

2) The bank payment is already electronic.

Why are we ending up having to create a third electronic copy of the same transaction by scanning in a paper receipt and generating a third version?

Surely, if the mandation had been to incorporate VAT information in to bank payment transactions, this whole sorry saga could have been avoided - together with some standard industrial classification of the sale line?

Of course, this won't cover the carbon copy invoices passed from one small trader to another, but it would go a long way.

If we can pay with smartphones, then surely we can't be that far away?

 

 

About tom123

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Accounting degree, CIMA qualified. Added ATT in recent years. Working in the SME sector as FC/FD. Previously worked for UK subsidiaries of Canadian and Chinese parents. (different jobs...)

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18th Feb 2017 22:43

The benefits of using something like Receipt Bank are for when (if) we need to quarterly reporting under MTD for clients.

Then the idea would be clients scan copies of receipts, accountant accesses data and submits quarterly information to HMRC. Of course Receipt Bank doesn't deal with sales invoices though - so only half the job done.

Of course if your client is happy bringing the information along quarterly then this is a non issue, well apart from the fact you'll need to charge him extra of course!

How this affects accountants will depend on the types of clients they have and the processes they put in place.

Assuming MTD does proceed I can see chaos for a lot of practices. For those that are well organised and 'ahead of the curve' I can see them doing very well, for the rest...

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