20 Dec 2018
Wylie & Bisset, the leading Glasgow-based chartered accountants with a national reach, is advising business owners to see Making Tax Digital as a carrot rather than a stick.
While Making Tax Digital, which comes into effect on 1st April 2019 and means that all VAT registered businesses must produce their VAT returns from approved HMRC software, Lorna Wyllie, head of Wylie & Bisset’s Business Advisory Services Department, says that, regardless of whether a business is VAT registered, they can streamline their accounting processes significantly through using the latest digital accounting software.
“Over the course of the last year, many of our clients have migrated over to online versions of Sage or Zero and have seen significant improvements in their business processes as a result,” said Wyllie.
“I deal with some clients who used to outsource all their accounting requirements to ourselves but now review their accounts regularly on a user-friendly app which they can access and update on the go or at home. That accessibility offers huge advantages to many businesses.”
Wyllie advises owners of VAT registered businesses to seek advice as to whether they are compliant ahead of Making Tax Digital coming into effect and rather than regard it as a stick with which HMRC uses to force companies to comply with the regulations, consider it instead as a carrot offering benefits to their business by saving administrative time and helping run businesses better.
“There are significant business efficiency savings to be realised through using digital technology, such as removing the need to re-key financial information, thereby saving businesses hours in administration tasks and freeing them up to concentrate on the more important and rewarding aspects of running a business,” she said.
“That’s why I advise clients that they should consider utilising the latest advances in technology, regardless of Making Tax Digital.”