The launch for Making Tax Digital (MTD) for VAT passed quite some time ago, and for those who meet the requirements, it is now mandatory to file VAT returns electronically. If you haven’t had to make the switch yet, then it’s still a great idea to consider using cloud accounting software sooner rather than later. This is because MTD is due to be rolled out to income and corporation tax in the future.
Unless you’re exempt from digital accounting altogether, you’ll discover that these tools help for a smooth and easy switch. Let us explain exactly how…
Use cloud enterprise accounting software sooner, and you’ll be able to take advantage of its functionalities sooner. One key benefit it provides is being less time-consuming, specifically when compared to filing via paper returns or on-premise tools. It also comes with a lower price tag.
The tools are scalable too, meaning you can focus on growing your business. It also avoids issues that might cost, such as maintaining IT systems and rectifying errors. With the cloud, you’ll always have a clear, live picture of finances offering valuable insights. These can then be used to develop your business.
To comply with MTD, you’ll need to understand how the cloud tools work. Whilst there are many that are incredibly simple to use, it’s worth sampling the functions – especially if you’re a tech novice. This way, when there’s a return deadline pushing, you won’t be struggling to comprehend the essentials.
On top of this, you’ll be able to make sense of HMRC’s digital path. Knowing what is and isn’t compliant with MTD is very beneficial and will give you peace of mind. This is especially useful if you plan to use spreadsheets, as these are only allowed if you employ bridging software too.
Bridging software makes the switch to MTD for VAT even smoother. This digitally links up spreadsheets, so that you can continue using them whilst still getting used to cloud tools at the same time.
And Liquid’s bridging software has many of the advantages – from being able to link up to other accounting systems of your choosing to one-time-only data entry. Plus, the VAT Filer has two-way communication with HMRC, giving you instant confirmation of your return filing.
But that’s not all. There are also multi-company and multi-user add-ons meaning the software can grow as your enterprise does.
So many have benefitted from using our cloud accounting software – not just for VAT, but other aspects such as payroll. With MTD soon to change the face of accounting forever, now is the time to take advantage of our tools for yourself. Simply get in touch with our team, and we’ll help you smoothly move to the cloud.