The MTD tech approach: Data capture tools
As half the battle with a successful MTD ITSA transition is likely to be based on building practice efficiency, data capture products like Dext and AutoEntry are well-positioned to be a key building block for accounting firms, writes Richard Sergeant.
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Richard, half the battle is not "practice efficiency".
The whole battle is to first try and justify to clients that MTD ITSA is something they have got to do. There isn't enough bookkeepers to go round, so most will have to do the bookkeeping themselves. Therein lies the biggest problem.
Richard, believe me when I say that MTD ITSA in it's present format (namely £10k turnover) will not be working by April 2024. I very much doubt if the project will ever be ready and viable. The new pilot scheme should be interesting to watch.
Quite ... but you (or rather everyone) needs to realise that Pilots (even the well-run ones) ONLY help to identify pitfalls of the grand canyon variety.
They are by definition self-selecting of the interested parties (software suppliers, agents, taxpayers) in that only those with some degree of vested interest (whether commercial or intellectual or whatever) will volunteer ... and in particular it won't include those who are sceptical of the objectives, let alone those who are deficient in a love of technology (or even a competence with it).
The correct use of a Pilot is NOT to find out what software still needs to be developed ... it is intended to take fully-tested software (that has been built based on a well-defined specification) and then find out how 'users' manage to break it (or just give up) due to them doing things that the developers never contemplated anyone trying!
[To use the old terminology it comes after beta-testing and before 'go live'].
Anyone who treasures their sanity will run in the opposite direction if asked to join a pilot that is such an ill-defined mess ... and if they don't I'd advise asking them why not.
The train might well be on the tracks but if there are no passengers and nowhere to go, what then?
I'm sorry, Richard, but data capture is the least important aspect facing those with the threat of MTSD ITSA on their horizon.
When you say "these 'snap and go' type providers create the funnel into which a sole trader can pour their data" ... that is akin to saying that all you need for household re-cycling is a giant funnel to capture everything (or a dustbin as it used to be called)!
The hard work (and the value) comes from the effort in identifying & treating each item correctly in the first place - before it causes major problems downstream!
Take a picture and capture the expenses .. simple as that ? So what if clients lose receipts ? What if they have mileage claims instead of receipts ? Capital allowances / super CA's ? Use of home ? Other estimates ? Its not that easy is it ? Quarterly returns even if not VAT registered - many clients cannot be bothered with annual accounts / once a year and many are useless at keeping receipts. We're doomed Mr Mannering .. doomed I tell you !
Like the export of asylum seekers to Rwanda .. the policy will not be reversed it seems as we appear to be run by lemmings and sycophants these days with no grasp of reality.
Meanwhile another little industry for software APPS !
I take umbrage at the suggestion practices are inefficient . I dare so most practices have to be ultra efficient to keep on top of the never ending deadlines to avoid penalties. The efficiency needs to be the client end ... which is sadly lacking and every quarter we are going to be chasing our tails .. that's if we don't retire to avoid the chaos.
One question .. these quarterly returns - are they going to be staggered so they do not fall into the same months ? e.g. Mar / Jun / Sep / Dec as opposed to spreading the clients over the 12 months so that workload is spread and is more manageable ?
One question .. these quarterly returns - are they going to be staggered so they do not fall into the same months ? e.g. Mar / Jun / Sep / Dec as opposed to spreading the clients over the 12 months so that workload is spread and is more manageable ?
If you go way, way back to the early consultations about MTD, there was going to be no spike in work as people would have different year ends.
Now they're forcing everybody onto the same year end, forgetting that they "assuaged" people's concerns by saying that wouldn't be the case...
So you will have 30 days from 6th April (Easter), 31 days from 6 July (school summer holidays), 31 days from 6th October (half term), and 31 days from 6th Jan (I understand January is a time for accountants to sit back and put their feet up :-P )
Having spent a rather large amount of time this week sorting out a Dext/Xero based book keepers pile of rubbish which included a whole series of credit notes for invoices never paid (duplicated entries as client/book keeper are far too happy just snapping away with no real idea of what they are doing) combined over confidence due to misleading adverts about the capabilities of these products, I am afraid I would respectfully disagree with any suggestion that these products or MTD is anything to do with efficiency.