Introducing Xero – The new way to manage your accounts
We are pleased to announce that we have selected Xero as our in-house partner for small business accounting software, following a period of research and a review of the market. We have decided that the time is right to invest in an online accounting solution for all clients where we perform a substantial bookkeeping role.
The bookkeeping landscape is changing and online software has become more established, better value, and delivers time efficiencies that are not available in traditional software packages. Creeping legislation over the last decade has been pushing businesses towards digital record keeping and the advent of HMRCs ‘Making Tax Digital’ (MTD) for VAT initiative means the time has come for the vast majority of companies to move to automated systems.
Xero has been at the forefront of the evolution with its self-styled ‘beautiful accounting software’ with over 1 million subscribers worldwide already. Having looked at a number of solutions available to firms of accountants, we believe Xero to be the most accessible, affordable and functionally rich option on the market.
As an innovative practice, we have always tried to provide a range of tools to our clients that make the process of managing their accounts as easy as possible. From file sharing tools to pre-formatted Excel templates we wanted to make the day-to-day management of the accounting function simple and efficient. Xero continues with this aim and provides a range of functionality that will further help us drive efficiency and provide a timely and cost-effective service to our clients.
From automated bank reconciliations to apps that allow users to upload invoice and expense items, Xero has been designed to provide remote access for both the adviser and the client.
Making Tax Digital
One of the main drivers for this decision is the Making Tax Digital initiative. MTD requires all companies with a taxable turnover over the VAT threshold, to maintain digital records and submit their VAT returns electronically from 1st April 2019. The long term aim of MTD is to make all personal and commercial tax computation automated, removing the need for manual returns and improving the speed and yield of tax collections. Whilst this vision is some way off, the move to introduce MTD for VAT will be one of the biggest changes to accounting in years and will push large swathes of business onto digital platforms from manual record keeping.
We are delighted to have agreed to become a Xero partner and believe it will deliver a significant improvement to the way we work with our clients whilst ensuring our clients comply with new legislation on tax reporting.