Preparing and filing taxes may not be everyone’s favourite thing, but with the new tax year upon us, it is more important than ever to get prepared.

It may not come as a surprise that entrepreneurs experience elevated levels of stress when completing their taxes, as revealed by research from Mastercard.

From the research, it seems apparent that entrepreneurs who were young and female were more likely to experience the stressful impact (28 per cent), than their male counterparts (19 per cent).

Despite this, with the shift to a more digital tax system – once cloud solutions are integrated – individuals may see mandatory tax returns becoming less of a chore.

How can the Making Tax Digital rules benefit you?

The next step in the Government’s plan to digitise the tax system, Making Tax Digital (MTD), is well underway, with the extension for all VAT-registered businesses to comply coming into force on 1 April 2022.

Whilst some may see the change as stressful, the use of digital reporting devices and increased levels of automation may cut some of the stress associated with tax returns considerably.

In fact, almost a fifth of entrepreneurs recognised the benefits of completing their taxes digitally, reveals Mastercard.

Getting on board with cloud accounting solutions is set to provide a range of benefits, including:

  • Being able to access information remotely, increasing the ease of collaboration
  • Saving time and energy by streamlining operations
  • Having data stored in one place, whilst being consistently backed up to the cloud

It is likely that your business will already have software that is compliant with Making Tax Digital regulations in place, however there may be features on the software that you have not yet tapped into.

This may include app integration meaning that you could add other systems such as payroll and inventory trackers to the cloud system.

For this reason, it may be beneficial to have an accountant on hand to support with unlocking the full potential of your cloud accounting solution.

For advice with related matters, contact our experts today.

Posted in Blog.