As a successful business owner it’s important to have an accurate grasp of how your business is performing. Thanks to cloud accounting solutions such as Xero and QuickBooks, this is now easy, fast and cost-effective.
Cloud accounting gives you a clear overview of your current financial position, so it can highlight areas which may require attention. It does so by allowing you to raise invoices, record bills, reconcile bank transactions and view interactive reports quickly and easily. The team at Paish Tooth can help you set up and manage your cloud service, and use your online software to prepare your accounts and ensure that you’re tax compliant.
So you can keep your finger on the pulse! Online accounting programmes provide you with a real-time view of your accounts anytime and anywhere – from your Mac, PC, phone or tablet. Software such as Xero and QuickBooks is easy to use, and enables you to:
The cloud is an ideal platform for accounting – it is available anywhere you have an internet connection, and can transfer live data in real-time and while you’re on the move. It’s a crucial way of keeping your business ahead of the curve, and if you’re VAT registered it’s also an important means of complying with Making Tax Digital.
Cloud accounting software comes with bank level security measures, and is fully encrypted as standard. And because it’s not held on your local servers, it’s also far less susceptible to viruses and hacking. Cloud-based programmes like Xero and QuickBooks are automatically backed-up and always use the latest version of software available, thereby removing the need for expensive upgrades.
Cloud accounting is simple to adopt, and with just a small amount of training you can get a huge amount out of it. Paish Tooth is a certified advisor for both Xero and QuickBooks, and we can help you to set up and manage your cloud account.
Have a chat to us about making the transition – you’ll find preparing and managing your tax and accounts will become a great deal faster and easier!
Here we address some frequently asked questions about Making Tax Digital (MTD) to make you aware of how it may affect you:
Making Tax Digital is the government’s initiative to digitise the UK’s tax system, intended to make administrating tax simpler and more efficient.
Currently MTD only applies to VAT registered businesses with a turnover above the present VAT threshold of £85,000. So if your business falls into this camp, it means that you need to register with HMRC and your VAT returns for any periods from 1 April 2019 onwards need to be submitted under MTD rules.
According to HMRC’s current plan, MTD will be rolled out to all VAT registered businesses from April 2022, and then to further taxes such as Income Tax and Corporation Tax from April 2023 onwards.
MTD entails maintaining your accounting records and submitting your VAT returns to HMRC digitally, using ‘functional compatible software’. You can no longer use manual books & records or spreadsheets for administration purposes. We cover more about the type of digital records you’ll need to keep in our article Making Tax Digital for VAT.
The simplest solution to ensure you’re compliant is by adopting a cloud based accounting solutions such as Xero or QuickBooks. It is still possible to use desktop software for MTD, but only if it has been updated to comply with the new rules.
You can read more about MTD in our article Why you should adopt cloud accounting sooner rather than later. Please do give us a call if you’d like to discuss how to go about meeting your MTD obligations – we’d be very happy to help!