The UK’s economy has officially been the worst hit by the coronavirus pandemic out of any other major European nation. In the second quarter of 2020, our output shrank by 20%, sending us into the deepest recession on record – and there are plenty more challenges ahead.
Against this backdrop, it’s never been more vital to keep a firm hand on your business earnings – and real-time accounting can help you to do just that.
It’s one of the most assured ways to stay in step with your earnings, record them correctly, and make any adjustments you need in order to maintain a sustainable, healthy business.
The acceleration of real-time solutions
For several years, the UK government has been putting the plans in place to transform our tax system for the better – in the form of Making Tax Digital (MTD), first announced in 2015. This has been pushed back, and deferred slightly due to the coronavirus pandemic, but it’s still a driving force behind adopting real-time solutions overall.
Headed by then-Chancellor George Osbourne, MTD sought to digitise tax records – beginning with VAT – from April 2018. Registered entities are gradually being brought onto the new system of making simpler, quarterly tax payments and keeping a real-time log of transactions. It makes it easier for HMRC to detect fraud, while minimising room for error when it comes to the VAT return.
MTD was the primary reason to think about taking your tax responsibilities online, with compatible, HMRC-approved software. However, it has benefits beyond compliance. Any SME or non-PAYE earner can avoid tax penalties by getting their submission right the first time, every time. Expenses can be logged, claimed for and evidenced with less effort. Additionally, you can see the amount of cash going into the business, as well as your outgoings. That makes for more accurate forecasting and reporting.
COVID-19 has brought all of these advantages into starker relief. 15% of British workers could be unemployed in the wake of a second wave. If there’s a time in which to upgrade to online financial support, it’s now.
How real-time technology improves your accountancy service
Accountants who are willing to embrace these developments are much better placed to assist you than those who aren’t. After all, they can:
- Work faster without having to find and store documents and files
- Give you a single, up-to-date overview of your funds, tax status and cash flow
- Monitor growth, revenue-per-customer, top sellers and other KPIs
- Provide quicker advice based on more accurate data
- Handle your tax submissions with ease
Cloud accounting is not only the future of financial practices – it’s already transforming the way in which businesses work, strategise and make decisions.
Nabarro Poole were early adopters of this software, and we can easily integrate your existing records with the tools we use every day. Speak to one of our advisors to discuss what you want to see from real-time assistance, and learn more about the opportunities within it.