Making Tax Digital for VAT and Digital Bookkeeping

What is Making Tax Digital?

MTD was announced in 2015. It is an initiative by the UK government and HMRC to make tax filing electronically easier, faster for people to record and understand. 

If you pay taxes and file a return in the UK, then you are affected by MTD. It includes individuals, businesses, landlords, nonprofits and more. If you file taxes, use an accountant or get an income from any other place other than standard PAYE payroll, MTD matters to you. 

HMRC have clearly stated MTD would NOT affect pensioners, people who are paid through PAYE/payroll or who have a secondary income less than  £10,000.

MTD is a new approach to updating, reporting and filing tax information. For individuals, self-assessment tax returns will become a history. It is compulsory for all businesses and individuals to use MTD. There is good online accounting and bookkeeping services software that helps integrate directly with MTD. 

As a bookkeeper service, you can grow your business by ensuring your practice is ready and taking your clients to HMRC- recognised software. 

Following are the benefits of using MTD:

1.  You will get a centralised view of your tax information, entitlements, liabilities so you have a clear idea of how much you owe at a certain point of time. 
2. It reduces errors and increases accuracy in reporting and filing of taxes. 
3. You get an up to date understanding of how much you owe and the tax payments you need to make. 
4. You will get more time to grow your business as updating HMRC with your business financial information will become faster and easier. 
5. There is a low chance of compliance checks and audits by HMRC.
6. You’ll get digital nudges from HMRC to ensure you’re reporting correct information at the right time. 
7. Online billing means you can straight away pay your tax.  

All VAT registered businesses must keep and preserve records and accounts. 

When we need to outsource accounting and bookkeeping?

Many UK firms spend hours of time on manual accounting and financial tasks. They may lack behind in making crucial business and financial decisions. Or if the companies happen to make decisions in a rush, they might make few errors. Many accountants and bookkeepers including CFOs put a lot of time in manual accounting, checking and rechecking figures, calculations, and analysis. To manage time and make tasks easier, outsourced accounting services and bookkeeping services come into the picture. Many businesses in the UK are opting for offshore outsourcing.

There are many benefits that reap with the outsourcing of accounting and bookkeeping services. Let’s take look:

1. Focus on revenue generation: Outsourcing firms help businesses save money and focus on revenue generation. And the question you will ask is how is it possible? Well, an account outsourcing services and bookkeeper is taking care of all accounting functions and businesses do not have to worry about any issues and thus save cost and time. If you are outsourcing accounting activities, there is no need to have in-house accountants this will automatically help save cost and is beneficial for small and mid-sized businesses.
2. More important to the outsourced function: An outsourced bookkeeper provides priority to its client. The top priority is the financial health of its clients. If this task is handled in-house, the attention can go secondary or on any other revenue-generating process. Outsourcing companies make sure the financial information is up to date and in safe hands. Outsourcing allows businesses to focus on their core business objectives and thus they can grow and sustain in the market.

What is Outsourced Accounting or Bookkeeping?

OUTSOURCED ACCOUNTING & BOOKKEEPING
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Outsourced bookkeeping is a help which gives a full, bookkeeping division experience for private ventures. A bookkeeping office handles the everyday exchange coding, creditor liabilities, records of sales, finance, the board monetary detailing and numerous different administrations.
Re-appropriated bookkeeping suppliers have a full commendation of bookkeeping experts permitting them to offer a little group of bookkeepers at a lower cost to employing.
Benefits of Outsourced Accounting

1. FREEDOM
2. REAL-TIME INFORMATION
3. ELIMINATE HIRING COSTS
4. ENHANCE BUSINESS CONTINUITY
5. SECURITY

Top payroll companies in the UK & London

Payroll is not just about paying your people and you didn’t get into the business to manage paperwork and keep track of payroll outsourcing services legislations. We offer:

·         Consolidated, error-free documents & reports

·         Better resource deployment

·         Manage entire employee payroll life-cycle

·         Decreased infrastructure investment

·         Speedy resolution of queries

·         Lower risk related to compliance and penalties

Best payroll companies in the UK and London

List goes here:-

1. Payescape
2. Outbook
3. MHR
4. Moorepay
5. Just Payroll Services
6. ADP payroll
7. Crystal HR & Payroll ltd
8. Zoho Payrolls
9. Jeffreys Henry LLP
10. Buzzacot

Disadvantages of an In-house Team Of Bookkeeping

Accounting and bookkeeping are two significant procedures for any business and numerous organizations favor an in-house team(in a few cases even without anyone else) over redistributed virtual accounting. An extremely regular inquiry that Outsourcing Bookkeeping firms for the most part stop by is 'The reason should we supplant our in-house group to confide in a redistributed accounting?' And this is a substantial inquiry

Disadvantages of an In-house Team of Bookkeeping:

1. Inexperienced (Experience is costly) 
2. Overhead costs like payroll taxes, health benefits, compliances, etc
3. Hiring cost+training cost+management cost
4. Unreliable
5. Less or no control since you too aren’t an expert

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5 Reasons Why People Outsource Bookkeeping Services

Every business needs services like accounting, financial bookkeeping and reporting services. While most prefer having an in-house team for bookkeeping and managing other financial services, outsourcing bookkeeping services has also seen an increase in recent times. Now before i buy into discussing why actually outsourcing a bookkeeping firm is that the best choice for your business, here’s an easy definition of the same:

Benefits of outsourcing bookkeeping services:

1. Time-saving
2. Privacy
3. Reduced workload
4. No training required
5. Cost-effective

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How To Increase Productivity In Remote Teams for Accountants

In these difficult times when the worldwide economy has been left shattered within the wake of the Coronavirus pandemic, remote working has been emerging because the ‘new black’ in helping out business from sinking. However, Accounting is one of the few industries that has barely worked remotely and have just started migrating to the cloud. Accounting remains reliant on collecting bills and files and documents in text , and through the recent lockdown, accounting firms are finding it really hard to stay up with the transition to a mote workforce.

Tips for Accounting firms to efficiently manage Remote Teams:

1. Start with Cloud accounting
2. Encourage communication
3. Upload bills and share other transaction documents via secure channels
4. Use services like google docs etc to share numbers, calculations
5. Keep track of your goals with apps like Trello
6. Allow team members to take ownership

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