Small businesses find it challenging to maintain multiple records, as they must recruit and pay additional staff to keep a check on the records. However, managing them is another issue, and it comes with additional costs.
Therefore, small businesses should consider benefiting from HRMC's Making Tax Digital initiative by filing their tax paperwork digitally. For a digital journey, businesses require accounting software that aids in streamlining their tax process and cutting down on paper waste.
The Need For Going Digital
Previously, taxpayers had to invest a significant amount of time with their accountants as they had to go through hundreds of company documents before filing their taxes. The main aim of the MTD initiative is to reduce the paperwork and digitize the tax administration system for:
- Income tax
- Corporation tax
The initiative's vision is to improve the process by making it more efficient and effective to aid the taxpayers in submitting their returns. However, HMRC had directed all businesses to start preparing for filing digital taxes for the MTD initiative before it became mandatory on 1st April 2022.
Using a digital channel to file your taxes comes with the following perks:
- No need to worry about mistakes
Mistakes can happen regardless of how vigilant, but with MTD, chances of mistakes become considerably low on both sides, the taxpayer and HMRC. Also, you will never miss a deadline as you can send digital copies immediately.
- No need to worry about paperwork
With MTD, the usage of paperwork reduces as all of your invoices and documents become digital copies. You can maintain the records for a longer time by becoming MTD compliant.
- More time to focus on growth
Using the digital channel for your taxes saves time that you can invest in a new venture or attend to more customers. Becoming an MTD complaint reduces the stress of gathering documents and rushing to submit them.
EasyBooksApp: The Best MTD Compliant Software
Numerous options are available on the internet, but selecting the best making tax digital software requires close comparison and evaluation. EasyBooksApp is the best cloud accounting software that can help you convert your business transactions into digital copies.
Over the years, EasyBooksApp has become the best mobile bookkeeping software that small business owners prefer. Using EasyBooks to become MTD compliant is straightforward. You can take your day-to-day actions and create a real-time picture of your data. EasyBooks allows you to manage revenue and spending, record receipts, invoice and accept payments, run basic reports, and track sales and sales tax through your mobile phone.
You need a comprehensive cloud accounting software like EasyBooksApp to manage your taxes. Human errors are common with spreadsheets. Using MTD-compliant accounting software will ensure no errors in your entries or calculation. It will compile your tax filings so that you can transfer them to HMRC from your selected devices.
Apart from mobile customer invoicing, you can create a digital read-only copy of your financial transactions to share with your partner, bookkeeper, or accountant. Real-time synchronization takes place whenever any record is updated. Additionally, if you run multiple businesses, you can link all of them in a single app for simultaneous management.
Moving the tax-filing process from paper to online is a huge step forward for the corporate sector. Gathering this data on paper consumes a lot of writing and energy, and a slight inaccuracy might be disastrous for a small business. This list can help you weigh the pros and cons of various cloud accounting software and choose the one that best meets your requirements.
The EasyBooks software is one of the top choices for many small businesses regarding digital tax management. Furthermore, several additional accounting capabilities are also available to regular users. To give it a try, head over to EasyBooksApp and start your free trial today.