Cloud spells good news for hi-tech accountancy

Many people may remember the lyrics to a late 1960s Joni Mitchell song about clouds.

In between cooing about angel hair and ice cream castles in the air, she sang about clouds:

But now they only block the sun
They rain and they snow on everyone
So many things I would have done
But clouds got in my way

That’s tough on clouds because for accountants, clouds, or THE Cloud, does anything but get in the way.

Modern accountancy is a world away from a previous reputation of being perhaps somewhat introverted, poor at communication, tired and dusty. They are embracing cutting edge web-based technology and outsourcing where necessary to firms with huge expertise in that field like GI Outsourcing, who help manage some of the more routine accounting tasks.

There are myriad reasons to invest in cloud accounting. April 2019 saw the introduction of Making Tax Digital, the Government’s new digital tax system, mandatory for almost all VAT-registered businesses.

This has become more important as reminder letters are being sent out to tens of thousands of UK companies explaining changes in the Making Tax Digital (MTD) system and how it affects them.

HM Revenue & Customs (HMRC) is writing to more than 150,000 VAT-registered businesses who do not hold a valid email address, explaining what they need to do to continue paying their VAT by direct debit.

In April this year, HMRC started moving the VAT records of traders who are not signed-up MTD for VAT from an old database (VAT mainframe or VMF) to a new database (Enterprise Tax Management Platform or ETMP).

MTD means you are no longer able to keep and submit manual VAT records and returns. Instead, HMRC will only accept VAT returns sent using software that supports MTD for VAT.

The use of this technology is mandatory so it is a good idea to upgrade software, or migrate accounts, before the end of your next VAT period.

There are also very few processes cloud accounting can’t help speed up and streamline, saving time and money.

Cloud accounting helps teams collaborate and work on projects together, whenever and wherever they are in the world.

Our GI Tech Consultancy arm advises accountancy firms on the various cloud software packages, such as Xero, Quickbooks, Sage and others.

It is putting the business firmly in control of essential management data, allowing them to make faster decisions and can be implemented to dovetail with our current outsourcing services.

These include key services like bookkeeping, management accounts, SMART services, statutory accounts, payroll and taxation.

Utilising the latest technology-enabled automation of complex business processes can streamline operations, helping to deliver and improve service whilst managing costs. Our specialists at GI Tech Consultancy can advise on the latest business process automation options that will help transform profitability.

We are independent experts so we can tell you which cloud technology your clients should invest in to help revolutionise how a business operates. There are thousands of cloud tools to choose from – we will tell you which ones are worth your time and which to avoid.

Our UK-based account managers can assist you in creating a bespoke outsourcing solution to support your firm in achieving its commercial goals.

Contact our UK-based team of account managers today to find out how we can help your firm.

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Posted in Blogs, For Accountancy Practices.