50% of clients resist MTD technology
Clients with poor financial or technical skills struggle with feature rich accounting software
Traditionally, accounting practices have opted for a one-size-fits-all software approach. They either use a practice-only solution and do all the data entry on behalf of their clients who bring in bags and boxes of receipts, or they invest in a fully-featured online accounting software that provides access for both the practice and their clients.
Software designed for both practice and client access aims to give time back to accounting practices because clients do the data entry. The idea is that time is money, and by ‘outsourcing’ data entry to clients, accountants can use the saved time to build their client-base and grow. However, whilst feature-rich collaborative software works well for tech-savvy clients, there’s an obvious limitation for those with a more limited knowledge of financial software.
50% of the population resist adopting new technologies
A very famous piece of research done in the ‘60’s showed that half of the population resist new technologies, with 16% completely resistant. With HMRC mandating the use of software to submit VAT records, accountants with resistant clients are stuck between a desire to involve their clients in data entry and a reluctant client who is comfortable with paper or spreadsheet based records.
A third option - online spreadsheets
In between offline records (like paper or Excel spreadsheets) and feature-rich online accounting software are online spreadsheets. Online spreadsheets offer accountants the opportunity to keep digital records and submit MTD VAT returns that are compliant with the HMRC mandate. They have the added benefit of being familiar to tech-resistant business owners, and therefore more easily adopted by clients who wish to participate in data entry processes.
Here’s how it works;
- The client tracks sales, bank transactions and expenses using an online spreadsheet
- The data flows from the spreadsheet directly into the accountant’s online accounting software package
- The data is adjusted and used to prepare and submit MTD VAT returns.
Clear Books Practice Edition with Micro spreadsheet
Clear Books is the only MTD software provider with an online spreadsheet solution for clients. At most, the Practice Edition software for the accountant to use costs £5 per month, with discounts bringing the price down for practices purchasing multiple units. The Micro spreadsheet for clients is absolutely free.
Buy in December and get a £100 Amazon gift voucher
Practices buying 10 or more Clear Books subscriptions in December through [email protected] will receive a £100 Amazon gift voucher. Contact Clear Books today to find out more. Terms and conditions apply.