The first phase of making tax digital was put into place just over a year ago. Since then we have seen major transitions that can help you make your annual accounting more efficient.
This month’s blog at SCS Financial Management focuses on modern-day accounting and the benefits it can have for your business.
One way that making tax digital allows your business to run efficiently is the simplicity of it. In the past, calculations were tough and stressful making errors common. With your returns going digital you can see how much you owe, the liabilities you have and how to budget. This is all done through various forms of software that can be found online, these specific forms of software all come with tutorials on how to use them so little mistakes are made. Click here for a list of digital platforms you can use.
HMRC have stated that the best way to use the software is by creating a spreadsheet with your accounting data, then combine this with one of the platforms above so that it can be sent to the HMRC systems. Making your calculations for the year simpler and efficient.
Ease Of Access
Another great way is the ease of access this technology provides, you can now log on and keep track of your annual returns at all times. Further reducing late payments and late fees. You will now be able to update the HMRC on a quarterly basis. However this will not mean you have to complete a full return every 3 months. Instead this will just give you and the government an insight into how much tax you will be required to pay and give you more time to budget effectively.
You can access this information on a variety of devices, even your phone. This will be essential for accessing digital tax during daily commutes and whilst away from the office, which wasn’t possible beforehand.
Avoid Human Error By Making Tax Digital
Human Error is the biggest problem with tax returns, many business and accountants can share the frustration of calculating their books only for it not to balance. This slows down a lot of businesses and makes filling in your annual forms stressful. Human Error is often caused by a incorrect calculation which then affects all future calculations that are carried out. This can set back hours of work.
Making tax digital combats this by carrying out the calculations for you. All you need to do is acquire the correct data and place it into the system. The software will then work this data out for you and submit it to the HMRC. Not only saving you a large amount of time but also reducing the amount of errors that may occur when carrying out your tax forms. Ensuring your annual returns are more efficient.
What We Can Do
If you struggle to complete your yearly records or confused about how to carry out your tax digitally there is no need to panic. SCS Financial Management can offer all business financial advice on how to adapt to the new system, our team can also take control of your accounts. Further eliminating any stress, you may have whilst calculating and of course allowing your books to become completely efficient.
Our team are dedicated to planning and making sure all VAT data is submitted before the deadline, without sacrificing professionalism or correct data.
Get In Touch
If you require VAT support or any other of our financial services, do not hesitate to contact our team. We will be happy to take the workload away from you, so you can focus on running the company. Call us today on 01737 373707 or fill out our contact form.