Making Tax Digital (MTD) may seem like a software and operational challenge at first glance – but, in fact, switching your business clients over to online accounting and digital tax accounts is a golden opportunity to rejuvenate your accountancy firm and bring it into the digital age.
If your accountancy practice has MTD positioned as a hurdle to overcome, then you may be missing out on a strategic opportunity to upgrade your systems and services – allowing you to add greater value for clients, and create a more efficient, connected firm as a result.
So, why should you embrace the move to digital accounting? And what are the practical steps needed to make this transition from traditional firm to cutting-edge cloud practice?
Why the traditional approach is holding you back
The Government's MTD initiative has been instigated, in the main, to overcome the drawbacks of the traditional approach to recording, collating and submitting your clients’ tax information – with the aim of moving the whole process into the digital space.
The old approach to accounting and tax returns hasn’t changed much in decades – with time spent collecting paperwork and receipts, and your team needing to manually sort and key in the relevant financial information. This manual process is holding your firm back, being slow, inefficient and based around the need for hard-copy paperwork to be input into your systems.
The benefits of a digital approach
To make your systems truly MTD-compliant, and to remove the inherent inefficiencies of the manual approach, your firm needs to switch to a cloud-based platform.
By switching to a connected cloud accounting solution, like Capium, you bring your technology up to date and reap the benefits of the latest scanning, software automation and reporting tools.
With your bookkeeping and tax processes in the cloud:
- Paperwork and receipts are scanned and digitised automatically
- Online payments and expenses are recorded directly, without any paperwork
- Accounting information is stored safely in the cloud
- Tax returns are quickly compiled and digitally submitted
By achieving these core benefits of a digital system, you save yourself and your clients hours of valuable time – freeing you and your team up to take a more in-depth, customer-facing role with your key business clients and their leadership teams.
Using MTD to become a connected firm
By becoming a connected firm, based around a cloud platform and digital processes, you change the underlying nature of your firm’s proposition and strategy.
You’re no longer a provider of pure compliance (the basic bookkeeping, statutory accounts and obligatory tax returns). The accounting and tax basics are taken care of as standard, and you can broaden your services into areas such as financial performance, cash-flow advice, strategic planning or helping clients to access the right finance.
In Capium’s ‘Using MTD to become a connected firm’ you get the practical advice needed to make this jump into the digital world.
In this guide you’ll learn:
- How to become a digital practice
- How to add value through digital efficiency
- How to create a truly connected firm.
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Contributions from the AccountingWEB.co.uk editorial team.