With MTD for VAT officially rolled out, the accounting sector has been completely revolutionised by the biggest change to happen in the industry in a long time.
Here, we detail the transformation and highlight how it’s not the only type of digitalisation affecting accounting.
Taking your accounts into the cloud
MTD is beneficial to any business, allowing for a more efficient and effective process. Before it became mandatory, plenty of accountants and businesses were already employing cloud accounting.
The digitalisation of tax means that information is stored in one sole place, can be more easily recorded and analysed, and the tools result in significantly reduced tax errors. In addition to this, cloud accounting allows accountants to perform tasks from any location. This also opens up new ways in which accountants can work with their clients instead of being burdened with laborious tasks.
One key feature of cloud accounting software is that, providing you pick top tools, they will integrate with others. Take Xero, for example – it connects with over 700 apps. This means you’ll be able to work with unified systems that correspond to one another, allowing for more efficiency.
Whether you require software that tracks time or links up to your CRM, you can effectively streamline processes. In fact, you may even opt for an entire Enterprise Resource Planning (ERP) system, and so the more integration, the better.
Automating time-consuming tasks
Artificial Intelligence (AI) is increasingly being used in a number of industries to automate complex and time-consuming tasks with extreme accuracy. Not only does this reduce costs but also increases efficiency.
The use of AI is only expected to increase. This is because of the benefits it will bring, for instance stepping up cyber security, being made even more smart in mobile devices, and smoothing up processes such as the customer journey. Particularly in service-specific sectors, such as the hospitality industry, this will boost your accounting systems even further.
Be open to technologies
Automation can’t be ignored. As other businesses incorporate such technologies, it will soon become expectation. And digitalising tax isn’t exempt from this. HMRC are rolling out plans to make others taxes digital too – it’s anticipated that income and corporation tax will go fully electronic in 2020. Soon, we could see paper accounts fully abolished.
Therefore, it’s important to be open to the newest technologies. Not only will these allow you to maximise your efficiency, they’ll ensure you won’t get left behind. This is especially key in matters like your finances.
Trying to run a business and manage every function isn’t easy. That’s why it’s a great idea to partner with an expert accountant, who’s not only up-to-date and using the latest and best tools, but has the ability to provide more than this. At Nabarro Poole, we offer other services that are certain to boost your accounts, including management accounts, budgeting and tax planning.
To take a step forward into the digital age, get in touch with our friendly team today.