Choosing the right MTD compatible software
As we all know, MTD is underway – and the majority of people have signed up to it and are MTD compliant. But some aren’t. In this month’s blog we will be showing you all the different MTD compatible software available to be MTD compliant.
What is MTD compliant software?
This is accounting software which is compliant with HMRCs new rules on Making Tax Digital.
Having a cloud accounting package which is MTD compatible, ensures your business stays compliant with HMRCs ever changing rules.
What does the software need to have?
To qualify as MTD compatible, the software must be able to; keep digital records, send information and returns automatically from data held in those digital records, and receive info from HMRC.
At Spectrum Accountancy Solutions we use Xero, and we are a Silver Champion Partner.
Xero is designed for those small and medium sized businesses; it is easy to use and provides a flexible way to manage your business – as well as being MTD compliant.
Xero performs bookkeeping functions like invoicing and payroll.
It allows you to have a live bank feed where you can also quickly reconcile bank transactions.
Xero has some brilliant features that we love at Spectrum – which is why we recommend it to our clients.
You can access Xero from a smartphone, tablet, or computer – meaning you can stay on top of your business’ finance whilst you’re on the go.
Xero also works hard to ensure you – and anyone else who needs to access your finances – are working off the same data, wherever you are, whenever you want.
Sage is another software which we use at Spectrum.
It’s MTD ready and recognise by HMRC.
Sage’s software is brilliant for Sole Traders and Small businesses.
Sage allows you to quickly create and track invoices, track cash flow, accept payments, record transactions, capture expenses and more.
It also allows you to give access to multiple users, including your accountant, so everyone can access the data they need.
Sage is a HMRC recognised software – meaning you’ll be confident in knowing your business is staying compliant with HMRCs ever changing MTD rules.
Also, Sage even has 24-hour phone line support if you ever have any questions.
Quickbooks are committed in allowing your business to thrive.
Accounting software Quickbooks allows you to manage your finances in real-time on their smart and secure platform.
Automate your books, always know where your business stands financially, submit taxes, get paid and manage employees.
Quickbooks automatically calculates your VAT and then submits your VAT return to HMRC – all whilst being MTD compatible.
At Spectrum, we recommend Dext to upload your receipts instead of having boxes full of them.
Dext allows you to upload receipts and invoices quickly and efficiently, they even have an app where all you have to do is take a picture of your receipt/invoice then Dext extracts the data for you.
Dext Prepare is 99% accurate and has 30 integrations and supports over 11,500 banks.
As well as all this, Dext is Making Tax Digital compliant! Dext removes the hassle of manual entry.
You must act now, if you haven’t already, and sign up to MTD and choose some software that suits you and your business.
Whether you decide to go for the software mentioned in this blog, or one of the many others that are listed on the government website – we can help you.
Ensuring Your Compliance
Spectrum can help you make the transition to the Making Tax Digital compliant software of your choice.
We are here to help you every step of the way of this transition, just give us a call on 0117 9902218 or send us an email at firstname.lastname@example.org to discuss how we can help you make the move to be MTD compliant.
Did you miss our previous blog about MTD for Small Businesses – Reminder?accounting, Making Tax Digital, MTD
This post was written by Daisy Vowles