Benefits of MTD for you and your clients
Making Tax Digital for VAT came into force over a year ago. But, many businesses are still hesitant about switching to an MTD compatible software without realising the benefits it could have for their business.
Save time doing accounting
A digital MTD software should automatically generate your VAT Return from bookkeeping. All you need to do is check it over and submit it! This is a great time saving tool that lets you focus on other aspects of your job, knowing that VAT is taken care of.
There are other features that make day-to-day tasks quick and easy too. Features like automated reporting, bank feeds, bulk recording, bookkeeping templates and software that can read the numbers in receipts are helpful. By removing steps from the bookkeeping process, repetitive tasks become easier to manage.
Everything in one place
Accounting software should have lots of extra features that benefit your client too. An integrated system that features invoicing and expenses management can make it easier for your client to run their business without having to switch between softwares.
Forget about bridging software
Bridging software has become a common solution to Making Tax Digital. But, there are lots of downsides to choosing this route.
Using spreadsheets to do accounting is time consuming. Your client’s data isn’t as secure as an encrypted software, and there’s a risk of losing your hard work if something goes wrong. Plus, you will need to receive and store physical receipts as proof of expenses.
Using an accounting software instead means all documentation can be stored online. This should be encrypted, and have regular backups to ensure the data is safe.
The soft landing period for Making Tax Digital has been extended until 2021, but it’s likely that a simple bridging software solution won’t be an acceptable ‘digital link’ after this time. Instead, it's better to prepare by changing your clients to an MTD software instead.
Choose the right accounting software
A common worry about Making Tax Digital is that finding a compatible software will be expensive.
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
- Manage expenses in the same place as accounting
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.
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