Many small businesses are still unsure of the benefits of using MTD software. We have outlined some of the benefits of moving from spreadsheets to MTD software.
The introduction of Making Tax Digital (MTD)
2022 saw the introduction of Making Tax Digital (MTD) for every business that charges VAT. MTD became compulsory for all businesses charging VAT whether they were above the VAT threshold or registered for VAT voluntarily.
Many of these businesses were already using MTD software and were ready to comply with submitting their tax returns digitally. But many businesses still rely on using spreadsheets and are confused and unsure how to switch to MTD software.
These businesses can continue to use spreadsheets but to submit their returns they will need to use bridging software. However, transactions will need to be manually mapped from the spreadsheet to the software and mistakes can be made.
So why not take advantage of the benefits of using MTD software?
What are the benefits of using MTD software?
The benefits of using MTD software are numerous and include:
- Easier bookkeeping with fewer opportunities to make mistakes. Any change to a single figure will reflect across all reports.
- Direct access can be provided to relevant people such as bookkeepers or accountant
- Reduces accountancy costs. Having all your financial information automatically updated in one place makes it far easier for your accountant to file your tax return.
- Information is available 24/7 from anywhere with an internet connection. With cloud-based software, you can access all your information from where you want when you want.
- Generates financial reports with detailed insights to help analyse business performance. No more having to create your own balance sheets, profit and loss analysis etc. The software does it all for you.
- Syncs information across all financial sources saving a copious amount of time going back and forth to reconcile.
- Real-time information to make instant business decisions. As information is constantly synced there is no having to wait for someone to manually update a spreadsheet.
- Simplified payroll. MTD can automate all aspects of your payroll processes.
- Stock control. Some MTD software includes inventory management tools so you have accurate information on your stock levels. No more relying on manual data entry which is at risk of errors.
Switching to MTD software
Switching to MTD software will help save time, reduces the risk of error, and can help your business to grow with detailed information. Rather than looking at transferring from spreadsheets to MTD software as an added problem for your business, look at it as an opportunity to streamline your business finances.
If you have made the decision to make the switch from spreadsheets to MTD software but are unsure how to do it, Maynard Johns Chartered Accountants have the answers. At Maynard Johns we provide the following services:
- Full set up of software
- Full training on how to use the software for you and your team
- Support on an ongoing basis
- Training on additional features and integrations
- Business performance analytics
You can view more details of our MTD software services on our Cloud Accounting Software page or give us a call on 01237 472071 for more information.