With the annual cycle of preparing accounts and tax returns, bookkeeping practices need to make it as easy as possible to collect the information they need from busy clients. In the past, this would have meant physically going to the client’s premises or the client dropping paperwork into the office. In addition bookkeeping practices would have processed a client’s bookkeeping and prepared their VAT returns in different ways. Whilst some used spreadsheets or other bookkeeping products to complete this process, now digital software, such as Xero, Sage and QuickBooks, bridges the gap between client and bookkeeper by collecting data from clients securely and efficiently.
Digital software makes traditional bookkeeping easier
Digital software gives business owners the ability to push documents, such as invoices and receipts, across to the bookkeeping software and bookkeeper when they have them to hand rather than waiting to the end of the month or quarter. This gives our clients the option to integrate this as part of their day to day workflow rather than creating an extra task at month or quarter end. There are also some smart tools which can take care of some of this for them in the background.
In addition, when using a cloud based bookkeeping software it removes the need to pass back up files to and from the bookkeeper as you can see and work on the same data at the same time enabling a greater level of collaborative working.
Should I care about digital bookkeeping software?
The answer is yes. Digital bookkeeping software:
- Enables transactional data to be securely transferred 24/7
- Keeps your books up to date
- Allows your bookkeeper access to your data in one place
- Makes the VAT filing process easy with digital data collection
- Connects your AMR advisor with your bookkeeping systems to access data needed for compliance and advisory services
- Integrates with existing systems and processes and simply creates a digital connection between your internal systems so that your AMR advisor can access the data they need
- Most importantly, however, digital bookkeeping software is integral to comply with HMRC’s Making Tax Digital rules.
What types of Making Tax Digital bookkeeping software are there?
Digital bookkeeping software is essential for businesses, especially in light of new regulations coming into effect that require all businesses to comply with Making Tax Digital (MTD).
Perhaps the most well-known and established digital bookkeeping software is Sage, a platform that has a long standing reputation for excellence in integrated accounting, payroll and payment systems.
Xero is one of the easiest digital bookkeeping software to use. Working with HMRC closely for a number of years, Xero has played a key role in supporting businesses with the transition to MTD. It provides real-time views of cash flow, which are easily accessed across multiple devices by authorised parties, while uploading data on the go is simple and straightforward. At AMR Bookkeeping, our team members are specialists in Xero accounting software.
QuickBooks, like Xero, is a one-stop shop for your accounting and bookkeeping needs, allowing you to manage payroll, taxes, invoicing, bills and expenses automatically and in one place. With an easy-to-use visual interface and some sophisticated, useful features, QuickBooks is another leading digital bookkeeping software for businesses.
How can Receipt Bank or Hubdoc enhance my record-keeping?
Receipt Bank and Hubdoc are like a digital filing cabinet: a web-based system in which you can upload invoices and receipts and share them with your bookkeeper instantly. The documents are then stored within the platform for easy access at any point. Both Receipt Bank and Hubdoc integrates with QuickBooks, Sage and Xero accounting software (amongst others) which, in turn, can feed all data into your bookkeeping software for central access by the bookkeeper, accountant and client.
Are there different apps available?
Yes, there are a number of apps available on the market that integrate with bookkeeping software and some are industry specific, all designed to make business owners lives easier, more efficient and effective. Available apps could help you with quoting, HR or inventory management for example and there are many more on the market.
Our AMR team are equipped with being able to advise on which app would best suit your business needs.
For more information on getting the most out of our digital bookkeeping system, please contact us for details on what this means for you.
