Accountants and their clients need to shift both their mindset and operations to make Making Tax Digital (MTD) work efficiently.
Accountants and clients need to leave analogue processes behind before MTD comes into play. MTD will mean more frequent HMRC submissions so accountants will need to find ways to find profit while juggling with the extra admin and deadlines and all the tasks associated with filing returns four times a year.
Clients will finally need to leave the shoeboxes of receipts behind and embrace easier ways to process expenses regularly. Digitally centralising information will be key to efficiency within MTD.
Accountants need to take control
It’s common for accountants to use many different systems and solutions such as cloud-based document storage, email, calendar and spreadsheets as well as other software for tax, bookkeeping and payroll.
When files are copied manually from one place to another (for instance from email to desktop to cloud storage), the process is prone to human error. To be in control of both processes and information flow, these systems should be all automated and joined up.
Become a ‘connected accountant’
Connected accountants integrate systems so data flows automatically through bookkeeping, payroll, accounts, tax and practice management. They are also able to share real-time information with their clients, who can review returns and sign documents through a dedicated website and use a mobile app to photograph their receipts.
Linked processes provides accountants and their clients visibility of everything from invoices to return submissions, so there’s less chasing for information on both sides.
With just months to go before MTD goes live in April 2019, now’s the time for accountants to start getting connected. Read the full article here to learn more.