Making Tax Digital Software Benefits Business
Making Tax Digital is on the horizon for many businesses. The transition to using digital software for business record keeping will be a significant change. Using digital software does not only have to benefit HMRC with Making Tax Digital compliance, it can also bring benefits for your business processes.
We hear you ask:
Will using digital software benefit my business?
Recording transactions digitally in real time can help you keep track of the numbers. Keeping track allows you to access various reports and assist decision making within your business.
Cashflow Benefits
An essential aspect for businesses is collecting monies owed from customers. High customer debts have a serious impact on cashflow, often detrimental to the business.
Using software to generate sales invoices and allocate payments received from customers, in ‘real time’, offers the option to generate a report of unpaid customer invoices and how long they have been outstanding.
You can swiftly decide whether to contact the customer to chase their payment with the option to send a statement, all done directly from the digital software.
Organisation Benefits
Using digital software does also help to keep the business records organised. A large volume of business transactions related to expenditure, with many suppliers now sending invoices via email.
It is inefficient to print off these invoices and enter manually into book-keeping software. Instead, some digital software providers allow for invoices to be emailed direct to the software, via a unique email address, which saves your time, paper, ink and the environment!
No More Missing Receipts
For those smaller receipts received from shops, various software providers allow for a photo to be taken of the receipt using an app on your phone. Your photo is then uploaded to the digital software and attaches to the transaction.
- No more missing receipts.
- Time saved finding them all when your accountant asks for them.
- Dext is an ideal solution for keeping your receipts in order.
Profit & Loss Benefits
Having all of your income and expenses recorded accurately and in a timely manner is another benefit to you.
A monthly profit & loss reports can be produced giving you an overview of total income for the month and where your money is being spent.
Decisions can be made upon whether certain costs need to be monitored if overspending, allowing for forward planning. The level of revenue earned can be reviewed and future tax calculations estimated.
One to One QuickBooks, Xero and FreeAgent Training
At Shaw Austin we offer one to one training sessions with our clients on the use of cloud based software such as QuickBooks, Xero and FreeAgent. This ensures you are confident with the processing of transactions. Our training sessions guide you through the benefits of the variety of reports available within the software.
To book your training session with a member of our team:
- call the office on 01244 400 244 and we will be happy to assist.
Shaw Austin are a firm of Chartered Accountants based in Chester supporting independent business throughout the UK. We take the headache out of business accounting and taxation by providing our clients with a personal service.
Published March 2022
