I know that we make a lot of recommendations, probably more than a lot of accountants do, and we tell you that everything is for your benefit, and it is, but sometimes we don’t tell you why in enough detail. This is the first in a series of posts about Cloud Accounting and covers why we recommend what we do.
If you ask any of our clients what the number one thing I email them about they’ll say ‘The Cloud’ or variations on that theme. I’m not just obsessed with the weather – although cloud is very appropriate for what we’re getting at the moment. The Cloud I’m talking about really just means on the internet.
You’re may be wondering what this has to do with accountancy, and the answer? Everything. The world of accounting is changing. In a couple of years’ time there will be no option for handing in a shoebox of receipts or fag-packet calculations, HMRC will insist on detailed books and records and insist on them being, you guessed it, in The Cloud.
I rarely agree with HMRC, it almost never happens, but this time we think they’re on to something. They’ve detailed their four foundations of Making Tax Digital (MTD) as:
– Better use of information
– Tax in real time
– A single financial account
– Digital interaction
By around 2020 HMRC will require all businesses – sole traders and limited companies alike – to keep their records in The Cloud and report to them quarterly. Although new requirements sound scary, it really will be good for your business and allow us to give you more timely and specific advice top help you operate as efficiently as possible, therefore minimising your tax bill.
Making the switch to The Cloud now means that when HMRC come calling you’re already ahead of the curve. You don’t have to worry about reports being late, because you’re used to having your information up to date. You don’t have to worry about penalties for not complying because you’ve been complying for years. Most importantly, you don’t have to pay any more tax than you should because we have real time access to your business records.
The next post in the series covers exactly what it means to keep your records in The Cloud and how we recommend you do that.
If you have any questions about moving to The Cloud or would like any more information on how we help businesses achieve this then feel free to contact me through the usual methods.