Why Small Businesses Need Cloud Accounting
From this spring (April 2019) HM Revenue & Customs require VAT registered businesses (with turnover over £85,000) not only to submit their VAT returns electronically but also maintain their accounting records in electronic format.
The message to businesses is clear – It’s time to get digital!
Contrary to what you may expect HMRC are not providing any software to assist taxpayers. Instead, HMRC have explained their idea to third party software developers who have each created their own version of compliant software.
Whether the taxpayer wishes to adopt a fully internet based package or retain the data within their own ‘desktop’ environment, the connectivity needed between the software and HMRC will mean all software must have an element of “Cloud” Accounting.
Put simply, VAT data will have to be stored or transferred via the web at some point. Thomas Westcott has been using wholly web-based Cloud Accounting software for several years and understandably the uptake by our clients has been significant.
For many businesses, a relatively inexpensive package can revolutionalise the way financial records are kept, the way you manage your business including cashflow management and the way that we as Accountants can interact with you.
Linking bank account records to the Cloud Accounting software is one way HMRC anticipate that the quality of record keeping will improve. Anticipated record improvement is why Making Tax Digital will extend to all VAT registered businesses and will also be used to assess income tax and corporation tax in the future.
Why not try Cloud Accounting now – It’s time to get digital!
For more information and advice visit www.thomaswestcott.co.uk/