Taxpayers like spreadsheets. But whilst they’re simple to use and make phasing in Making Tax Digital (MTD) easier, it’s not the best way to submit tax. Not only can they end up complicating matters, but they also lack reporting functionalities and are more likely to lead to errors.
That’s why so many are turning to cloud accounting software. Along with fixing the aforementioned problems, it saves time and there’s no issue if your business grows. If you scale up, so can your accounting systems.
However, many worry about the transition process. Here, we explore how you can switch seamlessly.
The first step is to decide on your enterprise accounting software. At a minimum, it should boast usability – you want to ease the tax process, not make it harder! Also, the tools should offer features such as bank mapping, allowing you to save time on manual data entry. Having the capability to store and share all data electronically will also make processes easier and allow your business to be paperless.
Many types of accounting software offer additional functionalities too. For example, you could benefit from multi-currency, along with sales and purchase order processing. A particularly great feature is a VAT Filer, meaning you don’t need to change software to be compliant with HMRC’s digital path.
Once you’ve chosen your cloud software, you should then think about the migration period. Though, you’ll need to factor in time to get to grips with the tools first. Start by understanding the core functionalities. For the advanced features, don’t feel like you need to use these straightaway – they can be left for later, allowing you to experience a smoother transition.
The exact time to move doesn’t need to be as soon as possible. Pick a period where you actually have time available. Many opt for the close of their financial year. Whilst this is logical, the summer is also a fantastic time. You’re likely to be less busy and have the headspace and capacity to focus on switching tools.
A key part of the transition will be migrating your data over to the accounting software. You’ll need to remove any data errors if there are any, and then get ready to import the information from the spreadsheet. The tools will likely require it to be formatted so that it is organised correctly. Remember to confirm the specifications – these can range from precise column headings to character limits.
After this, you can migrate your data. Though, you can always use spreadsheets alongside the software for a little while if you so wish.
If you do experience any issues with migrating data or using the tools, then your provider will be available to help. A great one will have telephone and web support, like Liquid Accounts. Our UK-based advisors are always on hand to help.
To find out more about our cloud accounting software and the packages and support that we offer, simply get in touch with our team. Call us today on 0161 413 5050 or email firstname.lastname@example.org.