The Making Tax Digital program requires businesses to keep and submit records (initially just VAT transactions) electronically - but even if you’re already using software to maintain your accounts, you may have work to do to comply.
Not all desktop accounting systems will offer the functionality required for Making Tax Digital - while some of the ones that do will require you to upgrade to the latest version of the software to ensure compatibility. Of course, this is likely to come at a considerable cost.
Ahead of the 2019 deadline, it’s therefore important to speak to your software supplier and see what provisions are being put in place on the platform you use.
Will they be offering a satisfactory solution for your Making Tax Digital obligations? Will that solution be compatible with your current IT set-up?
If not, a switch to Xero may be beneficial. As a cloud-hosted accountancy platform, Xero is accessible from any computer or mobile device with an internet connection - and doesn’t require any server or operating system upgrades.
Best of all, when you do decide to make the switch, we can take care of it all for you - bringing all your accounts across to the new platform with a minimum of fuss.
The likes of Sage and Quickbooks have been popular accountancy software for years, but the advent of cloud accounting brings a host of benefits that desktop software can’t match. Here are a few reasons why many businesses are switching away from desktop accounting:
The backup burden: Running desktop software means you constantly have to perform time-consuming data back-ups. Holding the data on the premises also represents a risk of loss, whereas, with Xero, data is hosted securely in the cloud.
Add-on charges: While Sage charges for additional users, Xero includes access for unlimited users with every plan - so you won’t pay a price for scaling up your business.
Costly crashes: Like any computer programme, desktop accounting software can crash or become corrupted, leaving you without access to key customer data. Xero offers class-leading up-time of more than 99.7% - meaning it’s virtually always available.
Compatibility issues: Because Xero runs in the cloud, any computer or mobile device with an internet connection can be used to access it. But not all versions of Sage Accounts will be compatible with your computer, and indeed the most popular version (Sage 50 v24) requires your server to be upgraded to more recent versions of Windows.
If you want to make the move from Sage or Quickbooks to Xero, we can take care of it all for you.
We use third-party tools to transfer all your accounts and information safely across and can provide expert Xero training to help get you up to speed as quickly as possible.
Just give us a call on 0121 667 3882 if you’d like to discuss your software options, or to see how we can help you
If you're unfamiliwith Making Tax Digital, and you want to know what it is and how and when it will affect your business, just give us a few minutes of your time and we’ll explain all in our latest guide.
Watch our latest webinar with Sian Kelly from Inform as she takes you through a step-by-step guide covering everything you need to do to prepare for Making Tax Digital.