Know what technology is right for your business

The goal of MTD is very much in the name . The crux of the legislation is to completely digitalise tax and transition away from antiquated methods of carrying out this process . Naturally , many small businesses remain unsure about some of the details and are concerned about how this process will affect the day-to-day running of their business .

Whether debating which digital tools will be available to them , how they should be used and whether they will impact the business , making this change presents a lot of unknowns that small business owners must face one at a time .

HMRC will ask for a variety of digital records to be kept by small business owners . This includes everything from their business name , adjustments to return , rate of VAT charged on supplies made and much more . While many small business owners are familiar with using software such as Microsoft Excel spreadsheets to summarise VAT transitions , it is mandatory that all information be submitted to HMRC through their own approved software .

Once familiar with the software , small business owners should start to recognise the value of adopting such digital tools in their business . Gone are the days of accountants surrounded by sky-high piles of paper with ‘ past due ’ scrawled over them in red ink .

Using digital tools can not only help small business owners save time by automating traditional bookkeeping processes , but it will enable them to invest this time back into the running of their business , focusing on the bigger picture rather than wading through administrative tasks .

Use MTD as a chance to upgrade

With the multitude of challenges that small businesses have faced over the past 12 months , it is no surprise that MTD compliance might have slipped down the list of SME priorities this year .

However , MTD is not something that can be wished away and nor should it be . It is designed to make small businesses more efficient , rather than cause unnecessary disruption . By using it as an opportunity to explore wider opportunities for digital adoption , MTD can make a positive impact on affected small businesses across a variety of industries .

Ultimately , SMEs that view digital technologies as a help rather than a hindrance will better position themselves to thrive . With a range of difficult circumstances facing founders and entrepreneurs , digital adoption can have a role to play in easing the burden of running a business . While MTD compliance can be daunting , it doesn ’ t have to be painful and could even serve as a launchpad for success . �

WHILE MTD COMPLIANCE

CAN BE DAUNTING , IT DOESN ’ T HAVE TO BE PAINFUL

AND COULD EVEN SERVE AS A LAUNCHPAD FOR SUCCESS .

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