My last blog focused on the timeframe that most of us have. Here I look into a little more detail at the perceived positives and negatives of the government imposed more efficient accounting systems we are all going to have to sign up to eventually.
Timeframe reminder: Around 2 years for most of us non VAT registered businesses
Positives
• Finally signing up to a computerized record keeping system albeit under protest – you know you always meant to!
• Once you get the hang of it this should mean less processing and more information that is actually in time to be useful as you fully embrace the digital age and all it offers.
• Therefore keeping track of your profits, tax and noticing unusual balances in time to do something about it!
Negatives
• The initial investment of time that ultimately comes with a cost.
• HMRC will be withdrawing their free software and handing over completely to the software houses.
• HMRC deny that this is leading up to bringing tax payments forward, they just want the information in real time. We are yet to see if this will be the case.
Summary
Love it or hate it, this will happen. Hopefully the positives will outweigh the negatives making us happy as well as HMRC!
Remember to get support from your accountant. The data you enter is how HMRC will understand the financial profile of your business. For further support or guidance please contact monica@thefishbourneaccountant.co.uk or call 01243 931457.