Tax doesn’t have to be taxing
Come April 2018 HMRC is looking at making all businesses with a turnover of £10,000 or more start to report information to them on quarterly basis.
At first this might sound like “a bit of a nuisance”, but when you then read that this information has to be submitted electronically, and that HMRC will not have their own software to do this, it can seem a bit daunting.
Some in the accountancy industry have been stating that this move could cost small businesses between £1,000 and £1,250 in additional fees in the first year and possibly ongoing. However, we at Moore and Smalley believe that for many small businesses the move could actually save them money.
Many small businesses still keep their books manually or are using spreadsheets, and often only update them when they have spare time. Bookkeeping can be seen as a chore and something that has to be done, but that doesn’t really add value to the business. This doesn’t have to be the case.
Bookkeeping the traditional way can be boring and time consuming, however, switch to an intuitive cloud based piece of software and you can actually start to enjoy updating your records. You will know how you are performing week to week and this is possible by dedicating only a small amount of time – and it’s guaranteed to be less time than you spend now. What’s more, with Moore and Smalley you have experts on hand to help interpret the financial information and advise on making the most out of the profits you are making.
Moore and Smalley recommend QuickbooksOnline software as it will enable businesses to submit information direct to HMRC in line with the proposed making tax digital guidelines. The software used is so intuitive and it has been proven to save around half the amount of time that traditional bookkeeping takes. The software on its own is only £10 a month*.
At Moore and Smalley we are actively encouraging clients to embrace the changes that are coming and get started sooner rather than later with the cloud based technology. Some of the benefits of having your books and records on a cloud based piece of software include:
- The ability to see the level of sales week on week, month on month
- Review costs at the touch of a button
- Automatically calculate VAT and submit
- See how much you are owed from customers at any time
- See how much you owe to suppliers at any time
- Allocate bank receipts and payments as they come into your bank account, no need to enter manually
- Know your profitability at any time
- Plan for tax bills months in advance
Ultimately the benefits above, along with others, allow you to see changes within your sales and cost base as they happen and not 3, 6 or even 12 months later on. This means you are able to adapt and change your business to ensure it stays profitable and competitive. All this should mean you make more profit, and therefore going digital should be seen as an opportunity not another financial burden or level of bureaucracy.
*prices exclusive of VAT