MTD Compliant Software: Key Benefits for Your Business

Many small businesses remain uncertain about the benefits of using MTD compliant software. We have outlined some of the benefits of moving from spreadsheets to MTD software.

The introduction of Making Tax Digital (MTD)

In 2022, the introduction of Making Tax Digital (MTD) for all businesses that charge VAT took effect. MTD became compulsory for all businesses charging VAT, whether they were above the VAT threshold or registered for VAT voluntarily.

Many of these businesses were already using MTD software and were prepared to submit their tax returns digitally. However, many businesses still rely on spreadsheets and are unsure about how to transition to MTD software.

These businesses can continue to use spreadsheets, but to submit their returns, they will need to use bridging software. However, transactions will need to be manually mapped from the spreadsheet to the software, and errors can occur.

So why not take advantage of the benefits of using MTD software?

What are the benefits of using MTD compliant software?

The benefits of using MTD software are numerous and include:

Easier bookkeeping

With fewer opportunities to make mistakes, any change to a single figure is automatically reflected across all reports.

Direct access for relevant people

You can grant direct access to key individuals, such as bookkeepers or accountants, making collaboration seamless.

Reduces accountancy costs

By keeping all your financial information automatically updated in one place, your accountant can file your tax return more easily, saving you time and money.

Information available 24/7

With cloud-based software, you can access your financial information from anywhere, at any time, as long as you have an internet connection.

Generates financial reports

Automatically generates detailed reports, such as balance sheets and profit and loss analyses, giving you valuable insights into your business performance.

Syncs information across all financial sources

This saves you significant time and effort by eliminating the need to manually reconcile information from various sources.

Real-time information for business decisions

As data is continuously synced, you can make instant business decisions without waiting for manual updates or spreadsheets.

Simplified payroll

MTD-compliant software can automate all aspects of your payroll process, reducing administrative workload and errors.

Stock control

Some MTD software includes inventory management tools, providing accurate, real-time stock level information and reducing the risk of manual data entry errors.

Switching to MTD compliant software

Switching to MTD software will help save time, reduce the risk of error, and help your business grow with detailed information. Rather than looking at transferring from spreadsheets to MTD software as an added problem for your business, look at it as an opportunity to streamline your business finances.

If you have made the decision to make the switch from spreadsheets to MTD software but are unsure how to do it, Maynard Johns Chartered Accountants has the answers. At Maynard Johns, we provide the following services:

Full set-up of software
Full training on how to use the software for you and your team
Support on an ongoing basis
Training on additional features and integrations
Business performance analytics

You can view more details of our MTD software support services on our Xero Support, Set-Up and Training page (we also support Sage, QuickBooks and other software) or get in touch for more information.

Get in touch