Moving to reputable accounting software is the key to tackling the digitisation of tax head-on, says specialist
The best way business owners can future-proof their SMEs ahead of tax digitisation is to migrate over to reputable accounting software in advance.
That’s according to Lee Murphy, owner of free cloud accountancy software Pandle.
He said: “Digitisation of tax means that all business owners in the UK will be required to make submissions online. HMRC have said that they don’t plan to develop the software necessary to make submissions digitally; to future proof your SME the best way business owners can prepare is to migrate over to reputable accounting software in advance.”
“Rather than waiting to the end of the year to get your accounts in order, SMEs need to start now, especially considering that the transfer over to accounting software may take some time to complete and could even break the deadline if submitted too late.
“These changes, and additional administrative requirements, may put people off starting a business – historically, new enterprises have not been forced to complete bookkeeping for a year to 18 months after starting to trade,unless they register for VAT.
“However, the digitisation of tax will offer great benefits for small businesses – as it will force them to learn more about how their business works, and give them much more control and insight into their finances”.
“Technology, such as accounting software, can also produce cash reports which will let SMEs know when they can expect to run out of cash, and even if they are failing. So if bad businesses fail quicker the entrepreneur is more likely to make the next business a success or will have the tools to reduce the risk of their current business failing.”