6 Reasons Why Cheltenham Businesses Use Digital Accountancy Firms

Almost anything can be completed online nowadays, and accountancy is no exception. While many tasks and strategic activities still benefit from the face to face approach, most everyday and essential tax issues can be solved with the help of a high-quality digital toolkit.

We take a look at why Cheltenham businesses are increasingly turning to digital accountancy, and the benefits that translate to your business, too.

1. Importance of Remaining Compliant

HMRC has introduced the Making Tax Digital scheme, which means that VAT-registered businesses with a taxable turnover that reaches above the threshold must now keep digital records and submit digital VAT Returns. If your business is under the VAT threshold, the digital system is optional, but it is definitely worth getting the hang of digital returns since HMRC intends to make practically every tax transaction digital at some point in the future. By working with Cheltenham accountants that also supply the relevant digital systems and protocol, Cheltenham businesses can stay one step ahead of keeping compliant.

2. Get Information in Real-Time

While sticking to the rules is vital, it is also important to use digital accountancy to plan strategically and maintain a competitive edge. When you use digital tax software, you do not have to wait for the end of the year to get the big picture of how your accounts look. You can access financial information whenever you want. There will no longer be any danger of big shocks at the end of the year, and you can use timely information to make adjustments to your business and ensure you are in a profitable place.

3. Plan Ahead

You can also use the access you gain to your accounts to plan more effectively. Once you know what your accounts look like at any given time, you can ease headaches and stress by putting plans in place to avoid problems later on.

4. Save Time and Effort

Manual bookkeeping is time-consuming and takes away from other more important business tasks. Using digital software and accountants to handle your tax means that much of the process is automatic, and a lot of tasks can be quickly completed with no data entry. For example, information from invoices and expense receipts can be automatically collected and used for payroll.

5. Benefit From Extra Security

Filing cabinets are not the most secure places to keep important financial data. By choosing to move your sensitive information into an encrypted digital system, where data cannot be accessed without authorisation, you can be sure that all of your financial details are safely consolidated, and that they will remain safe as your business grows.

6. Promote Teamwork and Efficiency

Digital systems can be accessed from any location, and by any authorised personnel. This is important as it allows for more efficient, collaborative working. You don’t have to pass through a single point of contact in order to access records, which makes it easier for different teams to meet their targets and goals. A digital system is, overall, a much more efficient system.