Ahead of the game - celebrating 5 years of disruption
A Haverhill company, established in 2014, to offer cloud-based accounting services, has found itself ahead of the game in the wake of government legislation coming into force from 1st April 2019.
The Making Tax Digital (MTD) for VAT legislation rules that businesses with a turnover above the £85,000 VAT threshold will have to keep their VAT records digitally. They will also need to provide VAT returns information to HM Revenue and Customs (HMRC) through Making Tax Digital (MTD) compatible software. For many businesses still operating paper-based or desk based accounting systems this change could prove challenging.
Paul Donno, Director of 1 Accounts Online Ltd, recognised the benefits that online accounting could offer businesses five years before HMRC’s initial consultation on Making Tax Digital (MTD), in August 2016.
1 Accounts have successfully championed the “cloud”, disrupting the traditional accountancy model and growing a successful company in the process. Back in 2014 the two Directors, Paul and Jenni Donno, worked from a home office looking after a handful of clients. They now have a team of eight, operate from a prime location at CXG House on Haverhill High Street and have over 200 clients.
Many in the accounting world have been slow to acknowledge cloud-based systems as they require a different approach to the traditional accountancy business model. A new way of thinking and working is required.
In advice to its members, the Institute of Chartered Accountants in England and Wales (ICAEW) stated, “Agents will need to take steps to prepare both their own practices and their clients for the disruption that Making Tax Digital and digitalisation will cause to the market for accounting and tax services.”
Paul explains, “With less than two months to go until the date for compliance for MTD, ‘Project Fear’ seems to be running rife within the industry! Moving to an online accounting system will involve some disruption but the returns to that business, if the transition is managed properly, will be almost instant.
“Time is the one thing that you can never claw back. When it’s gone, it’s gone. Online accounting systems, like Xero and Sage Accounting, save business owners hours on their admin. All of a sudden they get their evenings and weekends back and have more time to spend with family and friends.
“Access to real-time information for your business can be transformational. Cash flow is easier to control, you can track profitability and your decision making will be far better informed.
“Our message to those businesses who are not yet MTD compliant is not to be afraid. Embrace the technology, it is user-friendly, even for a technophobe, and it will make a difference to not only your business but your life.”
If you would like to find out more about Making Tax Digital please contact Jade on 01440 844986 or to find out more information about 1 Accounts Online Ltd visit www.1accounts.co.uk.