Working with your accountant in a post-MTD era
Picture it. It’s tax deadline week, and you’re not stressed. You don’t have to rummage through boxes or filing cabinets looking for invoices or receipts. Everything is in hand, and you’re entirely relaxed.
Is it all a dream? No. It’s the reality Making Tax Digital promises.
But what does it mean for your working relationship with your accountant? While MTD will streamline your record keeping and accounting data, you can now look to take things to the next level, using your numbers to enhance business performance and explore new opportunities.
MTD is a game changer – for you and for us
Beyond making tax easier, the introduction of Making Tax Digital brings with it two clear additional benefits:
- A widespread adoption of cloud accounting software.
- The opportunity for accountants to make a difference to your bottom line.
Here’s why these are so exciting:
1. MTD gives you a timely nudge towards new technology
Shifting your accounting processes to the cloud will allow you a base from which to operate and grow your business. Cloud accounting software such as Xero comes with various add-ons and connected apps, meaning you can seamlessly integrate important features and gain game-changing insight into business performance.
For example, you might use a CRM system to track the success of campaigns, manage your sales team (if you have one), or create special offers. And as a standalone system, that’s incredibly useful.
But when you connect it to Xero, you’ll take things up a notch.
Working with your accountant, you’ll be able to drill down into the details of all your financial interactions with your clients, and examine the data to better understand which sales have generated the best returns. Using that information, you can then tailor your customer’s experience by suggesting products or services they might need or like. Which in-turn will result in an increase in revenue.
2. MTD helps you make the most of your accountant’s skills
Accountants have traditionally reported what’s happened in the past. You receive your accounts often several months after your financial year has ended as a means to comply with Government requirements and determine tax payable. As a result, many business owners don’t know how profitable they are until they see these reports. Cloud accounting software can change this.
By keeping your cloud accounting system up to date, you have instant access to real time data which is much more useful for business owners to aid decision making. We can work together to explore innovative business ideas, develop long-term business plans, and identify opportunities to minimise costs and reduce overheads. We can also look at how you use systems and software with the aim of saving you time on run of the mill admin.
Ready to take things to the next level?
Making Tax Digital will transform how we approach tax, but its side effects are as equally important.
By encouraging otherwise reluctant business owners to embrace the cloud and all it has to offer, MTD will usher in a new era of data-savvy, insight-hungry entrepreneurs, and a new breed of accountant ready to advise them and add value.
We are those accountants. Contact us today to find out how we can help in a post-MTD era.