Are your clients ready for Making Tax Digital?
From 1 April all VAT registered businesses must sign up for Making Tax Digital, regardless of what they learn. This means they need to keep digital accounting records, using a MTD compatible software. This can be a change of working, especially for smaller clients who may now be seeking help from accountants.
Following the end of the soft landing period on 31 March last year, businesses with a turnover of £85,000 or more should already be registered for Making Tax Digital. However, MTD is now opening up to include all VAT registered businesses, which is most likely to affect smaller clients who voluntarily registered for VAT and weren’t included in the initial scope.
There are also new penalties for those who don’t comply. However, these will apply to VAT customers for accounting periods beginning on or after 1 January 2023.
Be compliant with automation
Being MTD compliant doesn’t have to be difficult. Choosing a Making Tax Digital compatible software with automation can make more than just VAT Returns simple. The right software can have benefits for both you and your clients, making it easier to help them make the switch to be compliant.
By using a software that can automatically generate VAT Returns from bookkeeping, you just need to check the return and submit it. If you’re handling your clients day-to-day bookkeeping, it’s a great time-saving tool that means you won’t need any new processes to be compliant.
Software that focuses on automation can have other features to speed up repetitive tasks, including automated reporting, bank feeds, bulk recording and smart bookkeeping.
Benefits for your clients
Digital accounting software can help your clients run their business too. Software with integrated features like invoicing and expenses give your clients useful tools to simplify their finances too.
When you encourage your clients to use these integrated tools, you’ll get the information you need to do their accounts on a regular basis. Instead of chasing up income, invoicing records and details of any employee expenses, you’ll have it all in one place. This can be used for your reporting, advisory services, and of course to generate a correct MTD VAT Return.
Although Making Tax Digital can seem daunting for smaller clients, by showing them the benefits of digitising their finances, you can help them work more efficiently while also being compliant.
About Bokio accounting software
Accounting software like Bokio, is a great solution to submit VAT Returns. Here’s what you can do with Bokio:
- Automated VAT Returns and reporting generated from bookkeeping
- Submit MTD VAT Returns in just a few clicks
- Bank feeds, bulk recording, bookkeeping templates
- Integrated invoicing software to create, send, track and record unlimited invoices
- Directors payroll, expenses and more
Bokio is a simple way to collaborate with your clients on their accounting. Our automated features streamline your process so you can spend more time offering high value advisory services
You might also be interested in
Make managing your clients simple with our time-saving software.