about-preparation-of-mtd

All about Preparation of MTD

ASSOCIATION OF CERTIFIED DIGITAL ACCOUNTANTS (ACDA) emphasise that accountants are required to think through their role in this transformation and take steps to be ready for a digital future. The obligation is on the accounting profession to converse to clients the techniques in which MTD will affect those who pay for services. Certainly, as a profession, accountants have already benefited greatly from technology; not minimum by saving time and money, thanks to automation and reduction in manual errors.

Many firms look to technology providers to provide them with the tools to help service their clients more effectively, it follows that clients are demanding more, too. They are looking to accountants to provide the extra touches, which ACDA provides but technology cannot. ACDA knows that differentiating factors such as customer service and business growth advice are becoming increasingly important.

ACDA qualifications are internationally recognised, meeting the needs of employers, government and learners, both now and in the future for the purpose of the digitisation of accounts. ACDA qualifications equip learners with real work scenarios for all accounting practices including digital accountancy & the MTD.

Since MTD will be a quantum shift for your business clients – driving a fast-paced evolution in how they will record, submit and pay their taxes. But MTD is also an incredible opportunity for you to update and modernise your accountancy practice through learning from ACDA – securing the long-term future of the firm.

ACDA believes that rather than seeing MTD as a software and compliance hurdle for the firm to overcome, it’s time to start taking the key steps needed towards creating a cloud-based connected practice that’s ready for the digital age.

Communication is key to MTD

The fact you are thinking about MTD preparation puts you in a practicality group of businesses. Contact your accountant today about what specific processes you can change to make compliance easier on both ends.

As part of the MTD initiative, the Government has set out 4 pillars:

Better use of information

Businesses and accountants will have access to digital tax accounts showing everything HMRC holds about you. This makes it easier to check information and means you spend less time calling and writing to HMRC

Tax in real-time

You don’t have to wait until the end of the year to know what your tax liability will be. Information will be processed more regularly, so you can plan more effectively and won’t have to deal with repayments or top-up tax bills

A single financial account

Your digital tax account gives you a one-stop-shop for accessing all liabilities and entitlements, reducing the time and frustration associated with analysing your financial position

Interacting digitally with customers

The media has been awash with reports of long wait times for reaching HMRC. MTD will allow businesses and their accountants to get and give information online, reducing pressure on HMRC’s customer service and saving everyone time and stress