Cloud Based Accounting Systems

Why use Cloud-Based Accounting Software?

Making Tax Digital (MTD) will soon be a requirements for all businesses. Already VAT registered businesses must use approved software to file their VAT return digitally. However, starting in April 2023 self-employed individuals, sole-traders and Landlords with a turnover in excess of £10,000 will be required to file quarterly digital summaries with HMRC.

We believe that now is the time to prepare for this important development.  As members of the Xero Partner programme we recommend using cloud based accounting software such as Xero as soon as possible. By using Xero rather than spreadsheets, you will enjoy major benefits.

Why use Xero Accounting Software?

Xero is a powerful management tool which complies with MTD requirements. In our opinion it offers business owners the best accounting solution for the following reasons:

a) Xero connects to the client’s bank account with ease. Once the bank is connected daily transactions are imported automatically.

b) It is extremely easy to learn compared to QuickBooks, KashFlow or FreeAgent.

c) It allows the accountant to reconcile the bank balance with ease. It quickly learns how to automatically allocate bank transactions to the relevant accountancy code.

d) The user can produce and print professional invoices to customers. Xero tells you exactly who owes you what and how much.

e) The Xero app allows the user to take pictures of bills and receipts which can then be viewed online against the relevant transactions.

f) Digital records held in Xero are very accurate compared to spreadsheets and manual records, which are to be phased out anyway.

g) Xero allows the accountant to be proactive rather than reactive. A proactive accountant will monitor the performance of the business and advise the business owner accordingly.

 h) Xero complies with Making Tax Digital. HMRC requires for businesses to keep VAT records digitally and file VAT reports digitally. Xero makes this process very easy.

i) Xero already complies with the requirements to be introduced in April 2023 when all self-employed individuals and Landlords will be required to file digital records of income and expenditure quarterly.

Please call the office on 020 8857 5781 if you need assistance with keeping and filing digital records.

We are Xero Certified Advisors. https://bestchoiceaccountancy.co.uk/insights/