Paul Lodder
VP of Accounting Product Strategy, Dext
There are two certainties in life: death and taxes. Both are inevitable, but at least with tax planning, the key dates and deadlines are very clear.
With new legislation, such as Making Tax Digital for Income Tax (MDT IT), the mandatory filing requirements are causing accountants and bookkeepers to change how they approach their day-to-day work. The question has now shifted from ‘why tech?’ to ‘which tech?’
AI bookkeeping automation
By employing bookkeeping automation, you can save time on your accounting processes by using AI to extract data from key documents, receipts and invoices. With accurate and up-to-date data, the reports you generate can be trusted to provide meaningful insights, giving you a clear view of your business’s financial health. Without this accuracy, any insights gained could be misleading.
By employing bookkeeping
automation, you can save time
on your accounting processes.
Scenario planning for taxation
Understanding the impact of budget changes is crucial for your business. That’s what makes scenario planning such a valuable tool. It enables you to forecast how upcoming changes might affect your business, so you can adapt with confidence — armed with real-time data.
MTD IT is not the only change we foresee in the tax space, although it is arguably one of the largest. Only 44% of accountants admit that they feel prepared for MTD IT, leaving the majority to fear the upcoming changes. Additionally, the Government’s budgetary amends such as National Insurance changes and other tax increases also have a knock-on effect on accountants and bookkeepers and the businesses they serve. When the country’s budget changes, so does a business’s budget.
Financial automation for resilience
Many other changes are coming soon, but there are already things that you could be doing to get ahead of them. One would be to implement a tool like Dext to get a better picture of your client’s financials. It can automate some of the routine tasks that eat up your time, and then give you insights that you can act on, with complete reassurance that the data is 99% accurate.
Unforeseen tax changes shouldn’t spell the death of a growing business. By making the right moves at the right time to future-proof a business with the power of financial automation, you can stay ahead of changes, minimise surprises and plan for cash flow challenges with confidence. The people behind the numbers can then have a healthy work-life balance, too.
