Making Tax Digital for VAT (MTD for VAT) is set to come into effect from 1 April 2019 for businesses which have a taxable turnover above the VAT registration threshold (currently £85,000). Under MTD, businesses will be required to maintain digital records and submit VAT returns using their accounting software.
These days, a lot of cheeky providers make clever use of the general confusion in the market about what is and is not cloud software. They ‘disguise’ their on-premise, desktop or hosted business software as bona fide 'cloud' software. They do this by stamping a 'cloud' label on itand offering it in neatly packaged (monthly) subscriptions. In the best case scenario this is actually hosted, single-tenant software.
If you want your organisation to work smarter, cloud accounting could be the way to go. Working in the cloud will give you a solution that grows with your needs and delivers results in an intuitive and easy way providing you with a better overview of your finances and your organisation.
So what is the cloud?
Think about when you use internet banking. Every time you access your bank through your browser or mobile app you’re using the cloud.
There are some tasks that keep getting put off, they’re not urgent and don’t seem important so they stay on the job list. Then, eventually, many job lists later and when it has become urgent and is beginning to annoy; it’s time to work on it. Half an hour later and, ‘voila’, it wasn’t that difficult to do, it all seemed to make sense and was relatively easy. It turns out that the really hard part was just getting started!
So many options…
Allow 10 minutes. Sit down with another user (and a coffee). Watch what they do. Learn from it. If they do something in a different way to you, you may have a suggestion.
Fear of the truth, fear of exposing a weakness, fear of wasting time, fear of spending money?
Why not face the truth, build a strength, save time and save money?
If you like it, keep it.
It’s not uncommon to download a trial balance into Excel and then make adjustments within Excel to produce the desired set of management reports. Problem is; that we’re back to using Excel and Excel, as good as it is, is notorious for allowing us humans to make mistakes.
One of the key benefits of accounting period control is the ability to close off each ledger once entering transactions for the period has been completed. This prevents users from changing information in a period where management reports have already been produced.
Planning or, to put it another way, having a strategy will help smooth out the negative attributes that creep in when implementing. Taking the time to create a well thought out implementation plan might have the following benefits:
How many times do you here this? I hear it quite a lot but then I ask the question “Why do you do it that way?”
No one has ever said to me, “Well, we looked at the options recently and decided that this way would work best for now”. Perhaps the way it’s being done is fine, it’s easy, you’re used to it and it seemingly works.
Stop, think – don’t rush.
Think about where you want to get to. Just like planning a route or setting the SatNav, it is better to do it before you set off.
Why is this important if you want to make improvements?
It’s a starting point. It clarifies the current processes and describes how things currently work. Writing out procedures, drawing diagrams, discussing them so that they are clearly understood is a key step.
Sometimes we struggle through without realising that if we learned the underlying principles, we would be a lot more able.