Cloud Accounting – Simple way to stay MTD compliant

Cloud Accounting – Simple way to stay MTD compliant

Cloud Accounting is a Way for Modern Businesses to Stay MTD-compliant

The fast-paced transition towards a digitalized future and the upcoming ‘Making Tax Digital’ (MTD) initiative is changing the way we do business. To embrace the change and upkeep with HM Revenues & Customs (HMRC)’’s guidelines regarding MTD, modern businesses are rapidly adopting the practice of cloud accounting. Harnessing digital technology, companies can remain on top of their business with access to real-time information, anytime and anywhere. It is safe, it is affordable and it helps you comply with MTD!

Discussed here are the key advantages of cloud computing and how it is the simplest way to stay MTD compliant.

1. Get Real-Time Data, Anytime, Anywhere

 HMRC’s MTD will be powered by advanced cloud accounting software, providing instant access to business-critical data in real-time. All financial information and bank transactions will automatically flow into your business’s digital tax account. This will let you keep on top of all your income, expenditures, profits, and losses. The online system enables you to access such data anytime and from anywhere, right on your device.

This gives you a complete overview of your company’s financial position, empowering you to make smarter and quicker business decisions. This is different from filing tax returns online and is much broader in scope.

2. Improved Accuracy

 Considering the complexities of record-keeping and filing tax returns in paper form, inefficiencies, and errors creep into the process, leading to billions of dollars of tax loss every year. However, a cloud accounting system that is compliant with MTD makes it relatively easier. It helps to input real-time records, bank feeds, and other transactions into your digital account. All transaction data automatically flow into your ledger, making bookkeeping and tax return filing simpler and quicker.

This helps eliminate avoidable errors and discrepancies and improve accuracy levels in tax management.

3. Time Saving

MTD-compliant cloud accounting systems will allow you to digitally upload all your ‘bank feeds’ and other transaction data right into your digital account. You do not have to rely on paper receipts, invoices, or bank statements. You can also use software with OCR technology that allows you to scan receipts and upload them into your account automatically. With all these features, your time spent on recordkeeping will be reduced dramatically.

4. Cost Savings

 If you choose MTD-compliant cloud accounting software, rest assured that there are no upfront license fees, expensive upgrades, or initial setup costs. You do not have to worry about the downtime in installing and integrating new software or upgrading the existing one to ensure it complies with MTD. Cloud software installs and updates live, and all your data is saved in the Cloud. This means you do not have to spend additional money on getting data backups.       

 5. Flexibility

 With MTD and cloud accounting solutions, you can now run your business and keep a tap on your accounts and tax filing remotely from any device that has internet connectivity.

Seek expert guidance from an experienced tax consultant or accountant to know how cloud accounting can help you comply with MTD and make bookkeeping and tax filing seamless.

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GNS Associates

Online Accountants Serving You Anywhere in the UK Tax Saving. Tax Planning. Cost Minimization. 24*7*365 Support. Anywhere, Anytime

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GNS Associates
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0208 090 2604
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