Is your accountant ready for Making Tax Digital?

With MTD round the corner and further digitalisation inevitable, now’s the time to review your existing accounting software and decide if you need to upgrade or go looking for a new system. As well as ensuring you’re compliant with HMRC’s Making Tax Digital initiative, a great accountant and decent accounting software should go above and beyond; providing you with the perfect tool for running your business and ensuring you can effortlessly adapt to future changes.

Soon, using accounting software will be compulsory for more than just VAT. It’s a good idea to start thinking about your options now – so you can avoid a last-minute upgrade or migration complications.

What to look for in a great accountant

MTD-compatibility, not just for VAT but for all future changes

HMRC have released a list of software approved for MTD, which you can see here – we’re on it! But beyond initial compatibility with MTD, you need to ensure your accountant can support you for all future changes. HMRC intend to drag the tax system into the 21st century with their initiative. While there have been delays, VAT is only the starting point. If your current or prospective accountant is still relying on spreadsheets, be wary. While spreadsheets can be adapted to be just about acceptable now, this won’t be the case forever as HMRC are clearly heading to an objective of real-time taxation.

Look for an accountant that’s digital first. They should be keenly investing in the latest technologies. These investments shouldn’t be about gadgets and pretty add ons, but about automating and freeing up time for both their clients and their team. By taking away fiddling-time consuming administration, accountants can then focus on providing a better level of personalised support to their clients. Similarly, look to see how their team is being upskilled. A company’s blog and social media are great places to get a feel for them and what they’re currently focusing on.

If you’re unsure your accountant is ready to take you into the future – don’t be afraid to ask questions. Any accountant worth their salt will have a clear roadmap and should be happy to share it with you.

Real-time software

Through top-of-the-line software, your accountant should be able to provide you with a real-time, to the minute view of your financial position. So you can make accurate decisions and you and your accountant can have informed, meaningful conversations based on accurate information. These conversations should foster a great relationship with the possibility of strategically working together to help you get the most out of your limited company. An advisory service shouldn’t just make you compliant; it should make you more efficient.

‘Many of my friends still use spreadsheets with their accountants. It’s like looking into a magic eight ball to see how much money they’ve got available. Whereas I can see how much I’ve got available anytime.’

Nick Griffiths, IT contractor and inniAccounts client

At inniAccounts, we believe technology helps us to form deeper connections with our clients, so we can get to know them, their needs and help their company thrive.

Connectivity

Great technology should connect not just with HMRC (as will soon be mandatory) but with a range of third parties; such as your business bank account. Cloud accounting and automation go hand-in-hand. By automation, we mean the use of algorithms and AI to process data to accomplish mundane tasks (such as entering your expenses, bookkeeping calculations etc.) Keeping data stored in the cloud allows automation at an unprecedented scale. This not only increases the efficiency for you, the user, but also for your accountant who can then provide a better experience.

We’ve always ensured that innovation is at the heart of everything we do; our software is constantly evolving as we harness technology to make managing your business easier than ever. A good accountant should always have a level eye set on the horizon and wholehearted jump into a digital-first approach, continually making your life easier and removing the potential for costly human errors.

Proactive service

We believe that a good advisor can help you grow, provide essential advice, and manage the things you don’t have the time to do yourself. Accountants set for the digital future should be providing you with more than a cut and dry, one size fits all service. As well as giving you the basics (compliance and accurate, up-to-date tax advice), they should be making time for you whenever you need them. They should be happy to answer any questions you have, and get to know you personally so they can help you with your goals. They should reduce your stress rather than add to it and limit the accounting-speak. Their expertise should create more time for you.

Let inniAccounts support you at every turn

Accounting software can revolutionise businesses – saving time and money, while freeing up resources for more important things. With the first of many MTD changes incoming, you need to have a partner who’s fully able to support you. If you’re currently without MTD-ready software or your accountant just isn’t hitting the bar, give us a look and see if we’re matched. We’re here to ensure running your company is painless and even (dare we say) enjoyable.

‘I celebrated 20 years of contracting this year, the last 5 being with inniAccounts. Their software and service is like chalk and cheese compared to previous accountants (and I’ve tried a few including key players in the market) – the financial side of running a business is now enjoyable rather than stressful. That’s why inniAccounts was founded and that’s why I will be with them until I retire. If only I could say the same about my broadband service!’

Ian Balfe, IT contractor and inniAccounts client.

Our system is specifically designed by contractors for contractors.
See if we’re right for you.

Time to go digital

Whether you’re an existing client, looking for a hassle-free switch or simply want to brush up your knowledge – we’re here to make Making Tax Digital simple and provide you peace of mind. Preparing for digital tax starts with managing business accounts online. If you’re already using a competitive software like inniAccounts, the transition will be a smooth one. But if you’re making a change, it needn’t be a headache, MTD is a great opportunity to streamline your accounts and make your life easier with great software.

Learn how inniAccounts can help you with Making Tax Digital today.