Self-assessment is soon to be replaced by HM Revenue & Customs’ (HMRC) software-led Making Tax Digital (MTD) system. Yet research by Institute of Chartered Accountants in England & Wales has revealed that 75 per cent of UK businesses do not currently maintain their accounts electronically using accounting software, instead opting for manual records or spreadsheets.
The research found that most of the burden of moving to digital record keeping will fall on those in the manufacturing and construction industries where 41 per cent still rely on paper based records. Of those surveyed over half (55 per cent) support the general move by HMRC to encourage businesses to send in their information online, but only 18 per cent felt it should be made compulsory.
According to BusinessZone’s Francois Badenhorst, the shift to digital will see accountants’ role becoming more advisory. Gary Turner, managing director of Xero UK, adds: “If your records are on paper or on a spreadsheet, it’s impossible for the accountant to deliver any value. If you eliminate that friction and increase the engagement, they can really help you run your business.”
At Beavis Morgan, we pride ourselves on the standard of service and practical advice we give to all our clients. We constantly listen to our clients’ needs and adapt our services to suit your individual circumstances. We put processes in place which make it easier to run your business and to maintain effective management of your company’s working capital. We also assist with management accounts, enabling better control of your financial situation and awareness of the business in real time, enhancing planning for the peaks and troughs, and making sure you always know how your business is performing.