As has been widely reported, HMRC are introducing Making Tax Digital for VAT in April 2019. This will mean all businesses must submit VAT returns via a software program. Whilst this legislation is very important and must be adhered to, it is also important to ensure that if you are moving from a manual system to a program, you take into account other features available in your chosen software.
Possibly the first consideration should be whether you wish to use a desktop or cloud program. Desktop software is installed on a computer and is generally only accessible to someone sitting at that computer. Cloud software is held on internet servers, and is therefore available wherever you have access to a browser, or even on a compatible mobile phone through an app. If your accountant also uses cloud software, this also allows you to collaborate more closely as they too will have access to your data.
Consider features such as bank feeds, which enable you to download transactions from your internet banking, and reporting capabilities.
Reporting can aid business planning as your financial information is available to you, and your accountant, in real time.
Customer invoicing should also be an area to look at. Invoices can be customised to include a logo and payment terms. Invoices can then be emailed directly to your customer. Some software can also be set to chase late payments by automatically emailing customers. Credit charges and late payment interest can also be applied.
Software is usually payable by monthly subscription with prices varying from £15 to £30 per month.
We have fully accredited staff experienced with Xero, Quickbooks, Free Agent and Kashflow, and are happy to demonstrate software to you. We can also help with program setup, training and ongoing support. Data currently held on many desktop packages can be converted to new systems, so no information will be lost.
If you require any further information please contact Gail Kristiansen at Kelso Office
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