Making Tax Digital

Getting ready for MTD: Use the right software

November 26, 2018

MTD comes into effect on April 1st 2019 for VAT-registered businesses with a taxable turnover above the VAT threshold of £85,000. Prepare your practice and your clients before the deadline. Use AutoEntry to automate data entry and generate digital records.

Using the right accounting MTD-compliant software should be at the heart of your MTD strategy, so now is the time to review if you’re happy with the solution(s) you’re using and if it will be suitable to serve more of your clients as they move onto the cloud. Consider factors including price, ease of use, and the range and quality of the features offered. A run down of compliant software options can be found online here.

Whilst spreadsheets can still be used, data cannot be manually entered into accounting software so  ‘bridging software’ will be needed to send this data digitally to HMRC. HMRC can revoke the use of spreadsheets in the future, so whilst it may seem like a convenient solution now, it may not be the wisest option in the long run. Practices should instead seize the opportunity to migrate all their customers to the cloud. And with everyone working in this way, it will be easier to manage clients moving forward.

Digital VAT returns must be generated from digital records and firms should consider using an automated bookkeeping solution to help them keep these digital records and streamline data entry from clients’ paper documents, including sales and purchase invoices, credit notes and more. Using this type of software and working in the cloud provides users with numerous benefits including remote access to their financial records, eliminating human error and improving data security.

What to look for in record keeping software

  • Easy to use software that employees and clients can get started with quickly
  • Software which can store digital records for up to six years, as required by the legislation
  • Software which can capture almost any type of paper document, including sales and purchase invoices as well as credit notes, bank statements and receipts
  • A mobile app to capture documents remotely
  • Effective data security, including encryption, to keep information secure in line with the GDPR
  • Cost effective pricing and no extra fees for adding extra users

Many businesses are now choosing AutoEntry to help them keep compliant digital records. AutoEntry works by capturing and analysing scanned and photographed images of paper documents, including invoices, bank and card statements, credit notes, bills, receipts and more, securely automating data entry into accounting software.

Operating through a secure platform and with its intelligent suite of features, AutoEntry is the most intelligent and cost effective solution provider in the market.

As well as helping users prepare for MTD, it helps to simplify your entire bookkeeping data entry process. By either using the mobile app, you can take a photo of the document you want to capture with this data posted accurately into your accounting software. Or documents can be scanned or emailed across.

“MTD will mean major changes for many of our customers, especially those who are not yet using any form of automated and cloud based software. Therefore we’re readying our clients early by providing strategic and personalised consultation where needed. At this time, the technology used should offer certain features to make this transition as smooth as possible for users, rather than adding further complexity. AutoEntry as a web or mobile app is both simple to use and fully compliant with HMRC’s systems, so will be a natural fit for us and our clients.” Nicki Paddy, Nicki Paddy & Co (Read the case study online here)

“We believe MTD will force tax administration to become more efficient, and will give our customers increased visibility into their accounts throughout the year, which will help us identify how they can become more profitable. We expect a surge of new clients as we approach the deadline and AutoEntry will be key in helping us support this new business. As AutoEntry is so simple to use, we’ll also be encouraging customers to use the solution themselves when scanning documents and filing quarterly reports.”  Toby Woodhead, Solution Architect, Armstrong Watson (Read the case study online here)