Making Tax Digital? No problem

Worried about Making Tax Digital? Some people are – but there’s a very simple way to deal with it.

Just make your accounts digital. And reap all the benefits that go with doing that.

So it’s no surprise that Haywood Accountancy recommend Xero cloud accounting, and are Xero Partners themselves .

Using Xero, it’s possible to complete your digital tax returns online virtually at the touch of a button. (Though obviously it’s sensible to check everything carefully first.) The same goes for your VAT returns. And it doesn’t matter how large, or how small, your business happens to be.

Getting your tax right…

Of course, like any other accounting system, Xero is only as good as the information you give it. So it’s important to take care of the basics. Luckily that isn’t difficult – and with the right help from your accountant you will soon discover the many benefits digital accounting can bring.

Take expenses, for instance. Forget about collecting mountains of paper receipts. Just scan each receipt with your smartphone, as soon as you can, and send it straight to your Xero account. If you’re an employer you can use the system to monitor and approve everyone’s expenses. You can even set up messages to let them know what’s happening with each claim.

Bank reconciliation is easy, too. With the majority of business accounts Xero can be linked directly, so all transactions are automatically recorded. For regular transactions it’s easy to set up rules, meaning they can be approved and reconciled with a single mouse click. In any case, Xero will always suggest likely matches with invoices or bills that are already recorded on the system.

Even so, it’s worth getting this work done professionally. Firstly because that will ensure it’s done correctly (and in a way that will satisfy HMRC). Secondly because, even though it’s quick and easy, it is still not the best use of your time as a business owner. And thirdly because, with Haywood Accountancy, professional help goes much further than simple bookkeeping and reconciliation.

…and getting your business right

Growing your business means taking time to think – time that you’re not wasting by doing routine chores that someone else could do just as well. Because these days it’s almost a cliché to say that if you spend too much time working in the business you won’t have the time to work on it.

But the best plans are always made with the best information – and, again, that’s what you can expect with up to date digital accounting. Xero gives you an instant digital snapshot of what’s happening in your business. Balances. Future cashflow. Your profit and loss account, and your balance sheet. And even custom reports that will show you, for example, your most profitable lines, your most valuable customers, your most significant expenses, and much, much more.

That’s good. What’s better is that Haywood Accountancy will help you interpret those figures – and build the custom reports that can give you the specific information you need to make the right decisions. Including decisions about tax. Xero makes it easy to work out your likely tax liability. To see how much you’ve already set aside, and how much you can afford to set aside from your predicted cashflow. So you can make crucial decisions – about investment, for example – knowing exactly where you stand. And that’s when Making Tax Digital stops being a problem, and starts becoming an advantage.

Like to know more? Then give us a call on 01284 330 123 or send us an email. We’d be delighted to discuss your requirements.