Going paperless is becoming essential for all business. With HMRC’s Making Tax Digital (MTD) initiative, and the growing demand for flexible working, digitising your accounting records offers many advantages.
At Hanley & Co. Accountants, this month’s blog offers advice on how to digitise your accounting records. For information, call us in Staveley, near Kendal on 01539 821869.
Why Go Paperless?
Switching to digital records offers a range of benefits. It allows you to organise documents and free up physical office space. Collaboration with your accountant become simpler too as it means you can share files instantly.
According to HRMC, 61% of business owners have lost receipts in the past. Keeping digital records reduces the risk of losing important information. Additionally, with digital records, you ensure compliance with HMRC, especially as Making Tax Digital continues to expand.
Choose the Right Accounting Software
The first step towards going paperless is selecting a reliable accounting software. There are several cloud-based options available.
If your business is VAT-registered, it is important to choose software that is Making Tax Digital compliant. This ensures seamless reporting to HMRC.
Migrating Data
Migrating all data stored via old accounting processes is essential in the transition process. To meet HMRC’s record-keeping requirements, digitise the most recent six years of documents, as this is the minimum period that records must usually be retained.
Regularly Update & Audit Your Digital System
It is important to regularly update and audit your digital system. This ensures your software remains compliant. Additionally, regular audits help to identify and address any potential compliance issues.
Meeting HMRC’s Digital Requirements
It is important that your digital records are HMRC compliant. As long as they are legible, complete and unaltered from the original, HMRC accepts digital copies as valid records.
If HMRC asks to inspect your records, you need to be able to retrieve them quickly and provide them in a readable format.
How Can We Help?
At Hanley & Co. Accountants, we can assist you in transitioning to a paperless accounting system. We can recommend the best software that can be tailored to your business’s needs and integrate digital tools with your existing workflows.
To add to this, we can help support your team and ensure you get the most out of your digital system. With the right guidance, moving to paperless accounting can be a smooth and positive change for your business.
Contact Hanley & Co. Accountants
If you require digital accounting advice, contact Hanley & Co. Accountants in Staveley, near Kendal. Serving across Cumbria, call us on 01539 821869. Alternatively, send us a message via our contact form and we will be in touch.
