UHY Hacker Young | Chartered Accountants

Why Making Tax Digital is like riding a bike…

20 January 2017

The problem with ‘Making Tax Digital’ (MTD) is that it implies that your hand is being forced; that you are being ’made’ to do something. What it fails to convey is that it’s merely a move to help the world of tax catch up with the rest of us from a technological point of view.

This January many of us are hitting the gym to get ‘into shape’. We all know that you can’t just passively perch on an exercise bike and wait for the pounds to fall off. You’ve got to work hard at it, and the more you do, the easier it becomes until it’s just another part of your day-to-day routine.

It should be the same with MTD, or the premise of MTD at least. A digital account with quarterly reporting may sound like a headache, but it’s a great jump start to getting your finances ‘into shape’. There are many advantages to this move away from record keeping on spreadsheets; including cloud accounting, automation and add-ons to help your business get the most of out of real-time information. In one instance, we helped a client process 1,700 purchase invoices in 12 hours using automation, saving the team hours of processing time. On average:

  • Clients that have moved to the cloud reduce time spent on processing transactions by 60% within 12 months; and
  • Get paid 15 days faster.

Recent announcements have condemned the Government’s plans as being rushed. Regardless of the time-frame that’s dictated, why not start benefiting from a cloud-based system now? In addition to allowing you to get more out of your financial data and make more informed business decisions, converting your bookkeeping system to a cloud-based software will alleviate much of the burden of transitioning to the Government’s quarterly digital tax reporting when (eventually) the time rolls around.

To help you get to grips with the inevitable digitalisation, we are offering free introductory workshops to demonstrate how we’ve helped our clients save money, save time and benefit from greater financial transparency. Register for your preferred time slot online:

For more information about converting to cloud accounting, please contact our cloud specialist Stuart Hurst or your usual UHY expert.