Spring Clean Your Finances And Eliminate Paper In The New Financial Year
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People often see the spring time as a chance to declutter their home, rather than their business. Yet with the new tax year about to begin, it’s the perfect time to go paperless with your accounting processes.
Here, we detail why eliminating paper will be beneficial to your business, along with how to make it a seamless transition.
Trying to change the way taxes are filed at an inconvenient time has led to struggles for many. Gathering your documentation half way through the tax year, before trying to convert them into a digital format, will be time-consuming. Naturally, those who leave this to the last minute often don’t complete the task.
A new tax year gives you the chance to eliminate paper from the outset. You won’t have to worry about past documents, making it much easier to go paperless. Also, the milestone date will feel like a fresh start, providing you with the motivation to continue with the process.
With Making Tax Digital (MTD) for VAT coming into force on 1st April, it’s a good idea to begin keeping digital records just before the start of the tax year. Once this change is in place, you’ll be legally required to digitally submit your VAT if you are VAT-registered and have a taxable turnover over the 2019/20 £85,000 threshold – so it’s the ideal time to digitalise your other accounting processes too.
Even if you don’t currently need to file your VAT in this way, if your business’ turnover later surpasses the threshold, it will likely become a requirement. Therefore, it’s good to get ahead in case of this situation. MTD will also be rolled out to other taxes in the future, so digitalising them now will make the transition much simpler.
The MTD initiative is being introduced to reduce tax errors and improve efficiency, and your clients will benefit from the lack of paper too. If they maintain digital records themselves, it will make their own processes (such as invoicing) simpler. This is because most accounting software has integration built-in.
Due to the streamlined nature of digitalisation, you can be more productive, ultimately leading to higher levels of customer satisfaction. Clients will especially be impressed because, by utilising forward-thinking practices, you’ll appear as revolutionary and better than your competitors.
You can make the transition to digital records seamless by using cloud accounting software. Ideally this will be customised to you, so that all your needs can be met. Liquid Accounts is perfect – it adapts to your business.
We have a host of features to help simplify your accounting processes. These include bank mapping to negate the need for manual entry, importing your accounts in an instant. There’s also integration available via the Liquid API for relevant systems and e-commerce platforms like PayPal. In addition, it links with your accounting software to smoothly file VAT digitally, and is fully MTD-compliant.
Liquid is the easiest way to eliminate paper. To get started, contact us today. Give our team a call on 0161 413 5050 or email info@liquidaccounts.com.