With the current tax year coming to an end in just a few weeks’ time, and many businesses choosing to run their financial year in parallel, there’s a very good chance that you’re in the process of preparing for the end of one financial period and gearing up for the start of the next.
If you’ve not already migrated to a digital accounting solution, this could be an ideal time to make the switch!
In line with its vision for real-time tax collection, the government is on track to transform HMRC and make it one of the most digitally-advanced tax administrations in the world. This means that over the next few years, the way your business interacts with the tax system will become increasingly based on digital technology. While the government has indicated that using spreadsheets will continue to be acceptable, as long as they are “Making Tax Digital compliant” (whatever that means!!!), the gist of it is that in the very near future, every business will need to adopt a software-based financial accounting system.
Eventually then, you won’t have any choice in the matter, but forward-thinking businesses should be moving away from ledgers and spreadsheets sooner rather than later – not simply to prepare for future compliance, but to benefit from the range of business advantages that digital accounting delivers.
3 Reasons to Go Digital Now!
- To Help You Work Smarter
A digital accounting system is vastly more efficient than manual record-keeping, and will significantly reduce your administration and paperwork, automating routine tasks such as producing customer invoices, VAT returns and management reports. A single data entry will populate all relevant areas of your books to reduce the possibility of errors, and synchronised with your bank account, transactions will instantly show in your accounts.
- So You Can Spend More Time Working On Your Business & Less Time Working In It
Keeping accurate accounts is essential (not to mention a legal obligation), but it’s a means to an end and does not – in itself at least, generate income for your business. By introducing a digital solution, you’ll free up your time, so you can focus on more valuable work.
- To Help You Make Better, More Informed Decisions
Management accounts are crucial to help you make decisions about your business, but with a manual system they will inevitably be marginally out of date. Digital accounting gives you access to real-time reporting, and with accurate, up to date information available to you at the touch of a button, you’ll be able to see instantly how your business is performing against your budget expectations and make faster, better informed business decisions.
Which Solution for You?
There are a myriad of cloud-based and desktop software solutions out there to choose from. Highly affordable, with subscriptions starting from around £10 per month, there will be one that’s perfectly suited to your business. Popular products include QuickBooks, Kashflow, FreeAgent, Xero* and ClearBooks*.
Let Inca Help You Migrate to Digital Accounting!
The advantages of migrating to digital accounting are clear, and by investing a little time now, you could be introducing a system in time for the start of your next accounting period. Inca can help you make the transition to digital record-keeping, managing all aspects of the process for you including recommending the right system for your requirements, setting up and configuring it, training and supporting you to facilitate an easy and smooth migration.
Soon, all businesses will have to make the transition, but by taking action now, rather than waiting until you have to, not only do you take control, you gain a business advantage over your non-digital competitors. Call us now on 01235 868888!
*As a preferred partner of Xero and ClearBooks, Inca has access to discounted rates which we are able to pass on to clients.