Accountants! Adding a division of labour can help Making Tax Digital
The Making Tax Digital countdown clock is ticking fast – within months the first wave of businesses will need to be using this new online tax reporting system.
It means a busy time for accountants as they get their clients ready – with the prospect of more regular contact with them.
And perhaps they could use a little help themselves – in the form of a freelance qualified bookkeeper who can help clients keep on top of their paperwork without some of the overheads that could entail.
From next April, all companies who are VAT registered, with an income over £85,000, will need to keep a digital record of all their VAT transactions so they can be submitted via accounting software.
From 2020, as it stands, small business under the VAT threshold will also be subject to Making Tax Digital.
The new rules will require businesses to submit their accounts every quarter rather than every year, so they will have to consult their accountants more often - it will certainly have an impact on their workflow!
Then there are the technology implications, with firms needing to use online accounting software to help them submit their returns under the Making Tax Digital system.
But all this opens up the opportunity for accountants and bookkeepers to work together to help smooth the transition to Making Tax Digital for businesses.
A qualified bookkeeper can help clients keep on top of their paperwork in digital formats – especially online as it means they can access the business accounts from anywhere there’s an internet connection (pretty much anywhere these days!).
More frequent submissions can help firms keep on top of their ‘virtual’ paperwork, avoid a backlog, and avoid any unexpected surprises in the form of big tax bills as things are far less likely to get out of hand.
A business, accountant and bookkeeper definitely don’t need to be in the same place – they can work remotely from each other in the digital age.
And using a freelance qualified bookkeeper would be cost neutral for the accountants as they are not employed by the firm and are not taking up any office space.
If you are an accountant, why not speak to Kim at Granville Bookkeeping and see how she could partner with you to help your clients. Call (01952) 402632 or 07814 690878, or email firstname.lastname@example.org