Is Making Tax Digital good for your business?

Is Making Tax Digital good for your business?

Making Tax Digital for VAT came into force a year ago. Using an MTD software to do your accounting can have some great benefits for your business.

Take control of your finances

Using a digital accounting software can help you get a clear overview of your finances, and as a result, make great decisions for your business! Digital accounting software should have automated reporting, so you will always know how your finances look and can plan your budget too.

If you use a cloud accounting software you will be able to access it anywhere, at any time. So you’re no longer limited to one computer to get your accounting done.

No more tax mistakes

A digital MTD software should automatically generate your VAT Return from your bookkeeping. So, if you record all your transactions, expenses and invoices correctly, you don’t need to struggle with complicated calculations to get your VAT Return in order. You keep HMRC happy, without the stress of worrying about your submission.

If you feel more comfortable working with an accountant to manage your VAT Return, choose a software that you can collaborate in seamlessly.

Save time doing your accounting

Online accounting software can save you time. An automated system means day-to-day tasks become quick and easy. Look out for features like bank feeds, bulk recording, bookkeeping templates and software that can read the numbers in receipts.

By removing steps from the bookkeeping process, repetitive tasks become easier to manage. So, you can spend less time doing your accounting and focus on running your business instead.

Everything in one place

Accounting software is often more than just doing your bookkeeping. An integrated system that features invoicing and expenses management can make running your business straightforward, without having to switch between softwares.

Forget about bridging software

Bridging software has become a common solution to Making Tax Digital. But, there are lots of downsides to choosing this route.

Using spreadsheets to do your accounting leaves room for lots of errors. Your data isn’t secure, and there’s a risk of losing your hard work if something goes wrong. Plus, you will need to keep physical receipts as proof of your expenses.

Using an accounting software instead means all your documentation can be stored online. This should be encrypted, and have regular backups to ensure your data is safe. There’s also no need for maths or formulas!

MTD soft landing period

The soft landing period for Making Tax Digital has been extended until 2021, but it’s likely that a simple bridging software solution won’t be an acceptable ‘digital link’ after this time. Instead, it's better to prepare by finding a MTD software instead.

Choose the right accounting software

If you’re looking for MTD software that can reduce mistakes and save you time, then Bokio is a great solution. Here’s why:

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