Could This Be The End Of The Tax Return As We Know It?
There are two things you will rarely hear from the regular business owner - one is, “I really enjoy dealing with the Inland Revenue” and the other, “I am really looking forward to getting my tax return in on time”.
Well, according to one of our resident accountancy experts, Chris Oxley from Danbro, that could all change with the introduction of digital accounting.
Chris presented this month’s open event for The Business Clinic, graciously hosted by our friends Blackpool Unlimited at the Blackpool Enterprise Centre.
Chris reassured those present how easy the online accounting is to use and introduced ‘The Big Green Button’. Apparently, this is one you WILL want to press!
The key message for the introduction of digital accounting is that it will save business owners time and money, while at the same time reducing stress.
Saving time is such an important benefit for those busy running a business, so how will going digital achieve this? Well in itself it will not, but being ready for the change by using an appropriate cloud based accounting solution will.
Invoices can be raised and expenses recorded on the go. All that is needed is a screenshot of the receipt, which is recorded in real time to your online account. Banking transactions are recorded in the same way and invoices become self -chasing.
At a glance you can see, are we in profit, do we have a healthy cash flow position, are all invoices paid? This information is available at your fingertips, your accountant’s and is of the moment. Of course your current tax liability will also be at your fingertips, thus avoiding late filing of returns and subsequent penalties. So tax liability, though perhaps not nice to know, is a need to know!
The technology currently available is simple to use, affordable in most cases and really does mean that accounting becomes paperless - no more plastic bags of receipts and so environmentally friendly too.
Whether you agree with the points made or not, digital accounting will be introduced, so best to prepare for it now. If you need help to prepare then please get in touch and rest assured we won’t tie you up in paperwork either. As one of our guests commented on the night, “very informative, took some of the horror out of cloud accounting!”