Improvement in technology has made a huge impact in the accounting industry. More specifically, changes in the tax system and development in accounting software have significantly benefited the accounting industry.
Making Tax Digital (MTD)
From the 1st of April 2019 HMRC introduced MTD. It is a legal requirement for businesses to use this method announced by HMRC to meet their VAT liability. However, it is not a legal requirement for businesses that have a turnover below the VAT threshold of £85,000. There are many accounting software’s you can use to submit your VAT return. Digital tax filing allows you to keep an eye on your tax in real time rather than waiting till the end of the financial year to see how much you owe to HMRC.
Development in Accounting Software – Xero & Receipt Bank
Accounting software such as Xero has made bookkeeping for many businesses much more efficient. Using Receipt Bank eliminates the act of manually entering information into software as scanning technology allows you to upload invoices and receipts on to Xero from Receipt Bank. This saves a lot of time and reduces the likeliness of errors occurring as figures captured on invoices or receipts will be automatically entered in Xero, instead of you manually entering figures.
This is where data is stored online and is accessible via the internet. Therefore, it doesn’t matter where you are or what time of the day it is, you can easily access your data with just the click of a button. Below are some benefits of cloud accounting;
- Clients and accountants can see in real time.
- Eliminates the hassle of having to arrange a specific day and time to meet up with clients.
- Files that you upload are backed up on the cloud and are completely secure.
Changing role of the accountant
Accountants aren’t bookkeepers anymore. Because of improvement in technology, they have more time to spend looking at higher level aspects of a client’s business. This is because they don’t have to spend time inputting thousands of numbers when a software does all the work for you. As a result, accountants can now specialise and spend more time on more value adding roles such as;
At Kala Atkinson we are certified Xero partners and with MTD underway you do not need to stress about bookkeping or submittinng VAT returns.
If you need help with bookkeeping, VAT returns or advice on growing your business get in touch to find out how we can help.