Embracing cloud accounting

Making Tax Digital compatible solutions are mainly cloud-based accounting solutions, such as Xero and QuickBooks Online, which are capable of importing bank feeds and linking to third party software enabling you to capture your expense receipts without you needing to input them, streamlining your bookkeeping.

By Craig Fishwick, director, Mayes

Cloud accounting can help you to efficiently capture and quickly categorise data, allowing you to see just how the business is performing at the click of a button.

Secondary to the efficiency gains is the ability for your accountants, to access your data, in real time, at the same time as you without the need to send backups between each other.

In addition to these benefits, the actual filing of the returns to HMRC will be easier.

Using MTD compatible software should make this process as simple as pressing a single button in the software which will automatically send all the required information to HMRC, in the format that they require, without any need for further human interaction.

MTD should be embraced by business owners as we move towards the future of tax reporting with HMRC. Rather than being more onerous, your entire bookkeeping process can become more streamlined and easier.

There are many benefits to cloud accounting in general. You can run your business from anywhere that has an internet connection, using multiple devices. You can collaborate in real-time with different members with different levels of access. Software is updated instantly, and it’s often available through a monthly subscription, saving over annual licenses and upgrades.