Mairi MacIver explains why now is the time for dental practices to switch to cloud accounting
HMRC has recently announced its Making Tax Digital initiative and has stated that, from April 2018, all businesses will be required to send real-time financial data each quarter using online accounting software which is Making Tax Digital compliant. HMRC has also confirmed it will not be providing the software and that the use of “digital record keeping software that links to and updates business’s digital accounts with HMRC” will be mandatory. The current annual system of reporting and paying tax bi-annually for sole traders and partnerships will also change to a quarterly reporting basis with HMRC.
In light of this change, now is the time for practice owners to review their present accounting system and assess whether their existing accounting system has the functionality needed to submit these digital returns to HMRC.
This is where cloud accounting software helps with your digital record keeping, so making the move won’t just be about being Making Tax Digital compliant with HMRC reporting, it also ensures you are up to date with your financial accounts.
Our cloud bookkeeping platform Xero is Making Tax Digital compliant, user friendly and allows you to monitor your finances and practice profitability in real time. It has been specifically designed to be easy to use with direct links to practice bank accounts and automated bank reconciliations.
The platform also has multi-user level access and makes inputting the financial information of the practice easy, thus saving time overall, a key benefit to any practice owner and practice manager. Switching to a cloud accounting platform brings considerable benefits, with peace of mind knowing that the business’s finances will be well set up to submit the financial data in the right format for HMRC’s digital reporting now, in time before April 2018.
For more information contact Mairi MacIver, Accounting Services Senior Manager, firstname.lastname@example.org