Brought to you by
Clear Books logo

Simple, intuitive and award winning accounting software.

Save content
Have you found this content useful? Use the button above to save it to your profile.

Is MTD a threat to your accounting firm?

22nd Sep 2017
Brought to you by
Clear Books logo

Simple, intuitive and award winning accounting software.

Save content
Have you found this content useful? Use the button above to save it to your profile.

You may have noticed we have been writing a lot about Making Tax Digital recently. Given that it's probably the biggest change to the British tax system for a generation, we'll probably be talking about it for a while to come!

So far, we've published several articles focusing on the worries that small business owners have about the impending initiative, but we appreciate that accountants aren't immune to the fear either.

Many accounting firms are worried that they will lose out as small businesses go directly to HMRC using HMRC's MTD app, but are these worries justified? Will your accountancy practice suffer because of the MTD initiative? Are you all going to have to start looking into alternative career choices?

 

We don't think so

In fact, we think that MTD could actually increase business opportunities for accountants who specialise in dealing with SMEs. Here's why…

 

Your clients will need help navigating the new system

While it is true that businesses will need to file using the MTD interface, they will still want to have someone to look over the details to make sure they've done it right. If someone is uncomfortable filing their own tax returns on their own now, that isn't going to change with the introduction of MTD.

 

In fact, the opposite is more likely

For the first few years of the initiative, small businesses owners will have to navigate the confusion of a new system and the complications of dealing with both old and new deadlines.

Even those who are currently perfectly happy to file their own annual returns may well feel the need for a little professional reassurance until they are more comfortable with the new way of doing things.

 

Looking after your 'digitally excluded' clients

Many SMEs are not keen on embracing technology. If they don't use technology as part of their day-to-day business offerings, many avoid it altogether. In fact, one fifth of self-employed people consider themselves to be 'digitally excluded'. Whether through fear, lack of knowledge or even disability, these business owners are likely to have trouble accessing the MTD interface. They will need assistance, and since MTD will allow people who are digitally excluded to nominate someone to file for them and act as a liaison with HMRC, you could very well be that liaison.

 

Offering additional services

You know that your skills and services go far beyond filing a tax return once a year, but how many of your clients are aware of the various ways in which you can help them?

MTD is a fantastic opportunity for you to provide extra value to your clients by offering additional services. People who have never before seen the need to hire an accountant will be coming to you for help with their tax returns to ensure they comply with MTD.

And because they will have to update their tax data quarterly instead of annually, you’ll be able to offer them real-time advice on a range of issues from profitability and strategic tax planning to cash flow and financial forecasting. You will have the opportunity to help your clients throughout the year rather than catching up with them only at the end of the tax year when they may have already missed the boat on certain savings or business opportunities.

 

Accountants really have nothing to fear from MTD

Of course, as with any big change, there will be a learning curve, particularly if you're also new to digital accounting. Some of you will have to dedicate a bit of time getting to grips with accounting software in plenty of time for the introduction of MTD. However, we're working on the belief that MTD will ultimately make life easier for both accountants and small business owners.

 

Why not view it as the exciting opportunity that it is?

Start positioning yourself as an expert now by giving your clients updates about MTD, reassure them that it really isn't anything to fear, and start showing them all of the ways in which you can help their businesses thrive.

You can help you clients embrace MTD by using our simple bookkeeping spreadsheet, Clear Books Micro. You can register your interest here.

 

Tags: