Making Tax Digital Accounting Software & Tools

NEED of making tax digital:

VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) are now required to follow the Making Tax Digital rules by keeping digital records and using software to submit their VAT returns. But other businesses below the VAT threshold will be required to follow making tax digital by 20222.

Making tax digital is future:

By April 2023 all landlord and self-employed businesses with annual income above 10,000 are required to follow MTD rules, that highlights the importance of adoption of MTD. Even for corporation tax MTD rules may be implemented by 2026.

Significance of Making Tax Digital:

Aim of HMRC through this practice is to become most digitally advance tax administrations in contemporary economies. Making Tax Digital aims to provide effective and swift service for its users.

How Businesswise can help:

We help you choose a software package which is suitable for your business and industry. We can also render training services for your staff to keep the record where necessary. Computation and submission of VAT returns is part of our primary services. Whether you need help with in-house bookkeeping or you want our services to do perform the duties from bookkeeping to accounts preparation and submission, Businesswise Accountants is here with you on every step of this journey.

What are company accounts:

They are also called statutory accounts, company accounts provide a short compendium of financial activities of a company in past 12 months, statement of financial position provides insight about assets and liabilities of a company while income statement provides profit-and-loss profile in past 12 months.

Reporting requirement:

Profit and loss statement is mainly drafted to submit corporation tax 600 to HMRC, This report tells the tax authorities about the profit or loss an organization has made in last 1 year. Similarly, statement of financial position highlights the assets and liabilities of a corporation. Again these reports are vital for all the stakeholders and only qualified and competent person should be assigned to this task.

Non-compliance can cause serious issues:

Both HMRC and company house can impose penalties for late submission and even a company can get de-register from Companies House by failure to comply with accounts submission requirement.

Importances of annual accounts:

Apart from legal obligation where a company has to submit its annual accounts to Companies house, these accounts can be important source of information and reporting for other stakeholders as well. For example, creditors, suppliers and customers wants to know financial health of a business before getting into any business arrangement. If a company is making loses then most banks will view this as high risk factor and may stop or reduce their lending to this company. Investors in private companies are usually informed through board meetings and management accounts but

Partnership Accounts for Businesses

If you are in a business with other partners, then all the partners have statutory obligation to file their partnership accounts along with self-assessment. Businesswise helps you fulfil construct partnership accounts obligation.

 Dormant Company Accounts

A registered company is legally bound to submit annual accounts even if that company is dormant, so, if you registered a company but it is dormant then you still have to submit dormant company accounts. Businesswise can submit and update your accounts and notify both HMRC and companies house to avoid any serious consequences.

 Confirmation statement

Companies house requires any company to file confirmation statement to inform companies house about any changes in that respective company. We at BUSINESSWISE keep an internal reminder for all our clients to inform them of confirmation date. We invite client in advance to submit confirmation statement to keep their information updated on Companies house.

       Sole Trader Accounts Support for Self-Employed People

If you run a self-employed business then your only obligation is to file annual self-assessment return to HMRC. We help you maintain your record, complete your annual return and finally submit it. You will benefit from expert advice on what tax to be paid and how to maintain your record for income and expenses.

Other Company Services:

We at Businesswise Accountants provide a range of other company services both efficiently and reliably, we can help you file confirmation statement, share transfers, voluntary company windup, dividend support services, registering a new company and helping open a new bank account for your business. Our mission is to provide all these services at competitive rates with highest quality of service rendered to all our clients.

Management accounts:

Although final accounts are statutory requirement of a company but significance of management accounts is of high degree. Management accounts enable a business to review their performance and this evaluation can be divided in different departments to have a comprehensive analysis of which departments are under performing and which are achieving their targets. As part of our core values, we intend to assist the all the businesses to gauge their performance against key performance indicators set by our in-house experts. Any variance is determined and then investigated any particular reasons behind it. This will provide valuable insight for a business to succeed. Businesswise accountants will provide all these services in under one roof.

Importance of management accounts:

Although there is no legal requirement for a company to prepare or submit management accounts but these accounts help a company determine its direction against the certain key performance indicators set by the company. Performance evaluation is vital in motivating the staff and improving any deficiencies in procedures and processes. Management accounts are prepared mainly for internal controls and any deviation and variances can be investigated further to get true picture of business affairs.