Posts

Rosemary Bookkeeping Tips and Tricks: A beginner’s guide for easy bookkeeping

,

Our 10 tips to bookkeeping like a pro.

Bookkeeping can be confusing.

At Rosemary Bookkeeping, we know that better than anyone.

So, sometimes you might need a helping hand.

Here are some top bookkeeping tips from our experts that’ll make your bookkeeping a breeze.

  1. Procrastinating is a no-no

Are you a procrastinator who leaves everything until the last minute?

Well, with bookkeeping, you can’t be!

It can quickly get out of hand and pile up on your desk.

As a small business, it is imperative that you keep to financial deadlines like Making Tax Digital (MTD).

If you don’t have time to do your bookkeeping while running your business, it might be time to outsource to help your capacity.

  1. Avoid bad filing systems

You must keep your old receipts and file them correctly alongside relevant paperwork.

If you’re reading this and thinking, “Oh dear, I don’t keep my receipts,” – don’t worry.

There are plenty of business owners like this around the UK. Trust us!

Here’s a good habit to get yourself into:

When you get in the office every morning, pop your receipts in a folder.

Even if this is being filed correctly later that day, at least you’ve made a start.

Are all of your invoices and bills in sequential order?

If they aren’t, then they should be!

This will make life much easier when dealing with deadlines, audits etc.

  1. Don’t mix business and personal expenses

If you’re bookkeeping for yourself while mixing your business and personal expenses, you’re making your bookkeeping a lot harder.

You would have to sit and sift through hundreds of receipts and separate them into business and personal.

Keeping these expenses separate will spare you this headache and give you time to do other things.

When the tax return deadline comes around, if you’re organised and have split your business and personal expenses, you’re more likely to pay the right amount of tax for your business.

  1. Be consistent

Set a monthly date to sit down for a few hours to get your bookkeeping and accounts for the last calendar month.

If you feel like you’re bogged down with too many other tasks, you can always contact Rosemary Bookkeeping to take over the bookkeeping side of your business.

  1. Pay electronically

An easier way to keep an eye on and make your bookkeeping easier is to ensure all business transactions are paid on your business card and not with cash.

This is obviously, because of the information your bank would provide on a statement; amount, date and the recipients/company name.

  1. Have distinct employee classifications

Many businesses have different classifications of employees.

Be they full-time employees, part-time employees and independent contractors.

Keeping these separate and correctly classified is vital to avoid overpaying taxes or misfiling.

  1. Backup, backup, backup!

We all know what technology is like.

It can turn off or have an inconvenient error at any time.

This is why backing up your data securely on a cloud-based platform is extremely important.

You must ensure this is a secure platform that complies with GDPR to guarantee the safety of your data.

  1. Concentrate on a bit of light reading

You would be surprised how many business owners don’t read financial statements and add them to their procrastination pile.

There are plenty of reasons why financial statements can help with your business and avoid a financial breakdown.

Here are a few:

  • See current/upcoming financial trends within your business sector
  • Gain insight into maximising your tax deductions for the year
  • Share with existing/potential investors how your business is performing
  • Stay in control of all of your cash flow

  1. Choose the right bookkeeping software

It’s vital to choose the right bookkeeping software for your business.

There are many different types, from cashbook-only software to that that covers everything from ledgers to foreign currency transactions.

Here is our recent comparison of some of the different bookkeeping software.

  1. Outsource your bookkeeping

If you, the business owner, are also doubling as the office administrator/bookkeeper, you won’t have time to do the most crucial thing, grow your business.

That’s why outsourcing your bookkeeping can benefit you and your business.

Outsourcing is also cost-effective and more accurate.

You’ll only need to pay for the hours worked on your accounts rather than paying a monthly wage for an in-house bookkeeper.

You will also get the necessary work done on your accounts professionally, so you can be confident they are consistently correct.

If you are confused by the bookkeeping side of your business or don’t have time to dedicate to bookkeeping, find your nearest Rosemary Bookkeeping expert to see how we can help you today.

/by

Easily-made bookkeeping mistakes and how to avoid them

, , ,

How to sidestep common bookkeeping pitfalls.

Bookkeeping is an essential part of running a small business.

It involves keeping accurate records of financial transactions and ensuring that all financial reports are up-to-date.

However, many small business owners make common bookkeeping mistakes that can lead to financial and legal problems.

Bookkeeping may not come naturally for many small business owners. At Rosemary Bookkeeping, it’s what we do.

Our network of experienced industry professionals provides localised and professional bookkeeping services across the UK, backed by the knowledge and support of a nationally recognised brand.

In this blog post, we will discuss some of the most common bookkeeping mistakes small businesses often make and provide tips for avoiding them.

1.   Poor Data Entry

One of the most common bookkeeping mistakes is inaccurate data entry.

This can lead to incorrect financial statements, which can have grave consequences for a business.

To avoid this mistake, take your time entering financial data and double-check all entries for accuracy.

It’s also a good idea to use bookkeeping software that can help with data entry and automatically check for errors.

2.   Failure to Reconcile Accounts

Another common mistake is failing to reconcile accounts regularly.

Reconciliation involves comparing financial records to bank statements to ensure all transactions are recorded correctly.

Failing to reconcile accounts can lead to errors in financial reporting, missed transactions, and fraud.

To avoid this mistake, business owners should reconcile accounts at least once a month and ensure that all transactions are recorded accurately.

3.   Mixing Personal and Business Finances

Many small business owners make the mistake of mixing their personal and business finances.

This can lead to confusion when it comes to record-keeping and tax reporting.

To avoid this mistake, open a new bank account to ensure all business and personal transactions are separated.

This will make tracking business expenses and income easier and ensure accurate tax reporting.

4.   Poor Financial Reporting

Another common mistake is poor financial reporting.

This can include failing to produce financial reports regularly or inaccurate or incomplete fee reports.

Poor financial reporting can make it difficult for business owners to make informed financial decisions.

To avoid this mistake, business owners should ensure that financial reports are produced regularly and are accurate and complete.

Working with a professional bookkeeper or accountant is also a good idea to ensure that financial reporting is done correctly.

5.   Doing it alone

Bookkeeping mistakes can have severe consequences for small businesses, including financial problems and legal issues.

By avoiding these common mistakes, business owners can ensure that their financial records are accurate and up-to-date, making it easier to manage their finances and make informed decisions about their business.

By getting bookkeeping right, small business owners can set themselves up for success and avoid costly mistakes.

Ensure your business is in safe hands by leaving your bookkeeping to your nearest Rosemary Bookkeeping expert.

Whether you want a helping hand and advice or to outsource your books, your local professional can help.

To learn more about how we can help you manage your finances and avoid bookkeeping woes, call 0345 862 0072 today.

/by

How do I budget effectively as a small business?

, , ,

Budgeting 101: A simple guide for small businesses.

There are many tools that small businesses need in their arsenal if they’re going to be a success.

One of the most vital is effective budgeting.

But it can also be one of the hardest to get right. At least, without help, that is

In this blog post, the bookkeeping experts at Rosemary Bookkeeping have compiled an essential guide for budgeting as a small business to help you budget like a pro.

Covered in this guide:

  • What is a budget?
  • How to set your budget
  • How to track your expenses
  • Adjusting your budget
  • Helpful budgeting tools

What is a budget?

A budget is a financial plan that helps businesses track expenses and revenue, set goals, and make informed financial decisions.

Having a budget:

  • Helps you set-long term financial goals – allowing for a clearer picture of your business’s future.
  • Keeps your spending in check and stop overspending
  • Stop you from getting into bad spending habits
  • Gives you an overview of your spending

How to set your budget

The first step in effective budgeting is setting a budget.

To do this, you should determine your expected revenue and expenses for the upcoming period, typically a month or a year.

You should then create a budget that allocates their expected revenue to cover your expected expenses.

It’s essential to be realistic when setting a budget and to consider unexpected expenses that may arise.

How to track your expenses

Once a budget is set, ensure you track expenses to stay within it.

As a business owner, you should keep detailed records of all expenses and regularly review them to ensure they stay on track.

This can be done through bookkeeping software or manually, but it’s vital to ensure that all expenses are recorded accurately.

Adjusting your budget

As a business grows and changes, its budget must adjust accordingly.

It’s imperative to review your budget regularly and adjust it as needed.

For example, if expenses are consistently higher than expected, your budget may need to be adjusted to allocate more funds to cover them.

Similarly, if revenue is higher than expected, the budget may need to be changed to allocate more funds to growth initiatives.

Helpful budgeting tools

There are many tools available to small businesses to help with budgeting.

These can include bookkeeping software, spreadsheets, and budgeting apps.

When deciding what to use to help your business, choose a tool that works best for your business.

And, importantly, ensure that all data is backed up regularly.

Need help making informed financial decisions?

By budgeting, you set your small business up for financial success.

Effective budgeting is essential for small businesses to track expenses, revenue, set goals, and make informed financial decisions.

By setting a budget, tracking expenses, and adjusting the budget as needed, business owners can ensure they are on track to achieve their financial goals.

With many budgeting tools available, choose what works for your business.

To set your business up for financial success, contact your local expert.

Whether you need advice from a trusted expert on setting your budget or someone to handle your bookkeeping, your local Rosemary bookkeeper is here to help.

We’ll do the books so you can do business.

For a free, no-obligation quotation on budgeting, software, and more, find your nearest Rosemary Bookkeeper today.

/by

MTD for the new tax year

,

How a bookkeeper can help you manage MTD.

MTD (Making Tax Digital) is a government initiative to digitalise the UK tax system.

Introduced in 2019, developments at the beginning of the 2022 tax year saw MTD extend to include VAT for businesses.

With VAT return deadlines looming, many businesses are having difficulty understanding MTD and its implications.

At Rosemary Bookkeeping, our experts are well-versed in online systems and financial processes.

That’s why we’re here with everything you need to know about MTD for the new tax year.

Refresher: What is MTD?

MTD has two core components:

  1. Replacement of paper-based records

Requirement for businesses and organisations (including those with property-based incomes) to keep digital accounting records.

  1. Using compatible software to submit tax returns and updates to HMRC

The government will remove current online tax services when businesses register for MTD.

They will require businesses and organisations to use software compliant with their API (Application Program Interfaces) to submit relevant updates and returns to HMRC.

MTD Timeline

  • 1st April 2019: MTD has been in place since this date for the majority of VAT-registered businesses above the tax threshold of £85’000+ turnover.

These included partnerships, sole traders, limited companies, non-UK businesses registered for UK VAT, and charities and trusts.

  • 1st October 2019: There was a six-month deferred start date to support more complex businesses.
  • 1st April 2022: MTD became mandatory for all VAT-registered businesses and organisations.

Upcoming Implementations:

  • April 2024: MTD will become mandatory for Income Tax Self-Assessment (ITSA) for self-employed or those with a property-based income if they have self-employment or gross rental income of over £10’000.
  • April 2025: MTD ISTA becomes mandatory for general partnerships. It will apply to corporate or ‘non-natural’ and non-limited liability partnerships with a turnover above the £10’000 threshold.

How coming changes and how they affect your business

MTD legislation already means you should have completed your ITSA through MTD-compatible software.

Before April 2024, if you were not already doing so, you’ll be required to keep digital tax records and submit this information to HMRC through an MTD-compatible software when conducting your self-assessment tax returns.

Exceptions

If your business has received an MTD exemption, it will still be in effect.

These can be caused by factors such as:

  • Age, a disability or where you live
  • You object to using computers on religious grounds
  • Any other reason why it’s not reasonable or practical

To check if you are eligible or apply for exemption from MTD, you can find guidance on how to do so via the HMRC website.

If you’re concerned about the impact of MTD on your business, you can read more about its effects here.

MTD’s benefits:

  • It can reduce or even eliminate paper-based or manual tax processes.

This allows you greater accuracy in tax returns and reduces time spent on administration. It also gives you more time to maximise your business opportunities, productivity and profitability.

  • If you opt to use cloud-based software, you’ll see in real-time what is happening in your books and have better control over your finances, allowing you to stay up-to-date and make informed business decisions.
  • Using compliant digital software means submitting information to HMRC is far simpler and less stressful.
  • Some accounting software links directly to your bank account. Further reducing the ‘paperwork’ and time spent filing taxes.
  • Digital software provides you with real-time management information so you can see how your business is performing.

So, if you have not already done so, you need to start weighing your options for MTD-compliant software.

Why now?

The new financial year is the best time to reset how you manage your books.

This period is notably less disruptive, as things are changing already.

By introducing new systems to work smarter, you keep your business information secure and make things easier to manage going forward. 

How Rosemary Bookkeeping can help

We understand that making the jump to digital can be scary and daunting.

But, it’s not as bad as it seems – especially with the help of an expert bookkeeping service like Rosemary Bookkeeping.

The benefit of changing to MTD is that we’ve had around four years of experience working with it.

With a professional bookkeeper from Rosemary Bookkeeping to help you, making your tax digital is simple.

We have been operating MTD for VAT submissions since its inception in 2019 and know its processes inside and out.

Going digital may be a scary prospect. Using a bookkeeper, your tax may be digital but your bookkeeping experience isn’t.

We will assist if you need to acclimatise to the software or do the work for you.

We also send generated returns directly from the software, so you have a well-kept and organised backlog of your records.

Our bookkeeping experts are trained to work digitally using MTD-compliant software like Xero, QuickBooks and Sage and are a real-life human presence that can reassure and guide you through the process, so you’re not going it alone.

As Rosemary Bookkeeping is well-versed in MTD and online services, we can advise which software would be best for you and often offer competitive prices for software subscriptions.

Additionally, we offer an online exchange of documents, so you’ll be able to upload photos or scans of documents so that we can process them on the bookkeeping software.

We also use Apps like AutoEntry or Hubdoc, which not only attach documents directly to the record on the software but also automate some bookkeeping processes – saving you valuable time and money.

Struggling with your bookkeeping?

As bookkeepers, we know that the new tax year is a busy and stressful time, particularly hot on the heels of January Self-Assessment tax return deadlines.

We also know that keeping track of your finances isn’t easy, especially when also trying to figure out MTD legislation and new software.

If you had a stressful time sorting your ITSA, the new tax year that swiftly follows may be a real cause for concern.

By contacting the professionals, you receive personal and expert support on all aspects of bookkeeping.

We love bookkeeping, but we know it’s not for everyone. So, leave the stress behind by leaving your books to the experts today.

Find your nearest Rosemary Bookkeeping business today to see how we can support you ahead of the new tax year.

/by

The best bookkeeping tools for small businesses

Tools of the trade that will save you time and effort in bookkeeping.

As a small business owner, your time is gold dust.

And with so much to do, your bookkeeping is a chore that takes up that valuable time.

But bookkeeping is not something you can skip out on, particularly with the growing need to keep a digital record.

Luckily, there are many tools on hand that small business owners can use to make bookkeeping easier.

At Rosemary Bookkeeping, we know there’s a lot to consider. What works for one business may be the wrong fit for another.

That’s why we’re breaking down the tools of the trade so you can figure out what bookkeeping aids work for you.

Quickbooks

If you’re doing your research, you might’ve noticed that many small businesses use QuickBooks Online.

But what makes it so good?

Pros: 
  • Scalable
  • Commonly used by professionals (including us!)
  • Integrates with 3rd party systems and Quickbooks Payroll
  • Cloud-based and available on mobile
  • Easy to use: All features are accessible through a central dashboard
  • Has a plethora of online resources to give you the support you need
  • 30-day trial
  • 4 Subscription plans that vary in price for business size, but can be upgraded as your business grows
  • More advanced plans offer more advanced features – though most small businesses will find the Simple Start Programme (£14/m.o) will suffice
  • Customisable options with mobile app
Cons: 
  • Requires an upgrade for additional users
  • Can suffer from syncing problems with banks and credit cards

Xero

Another popular accounting tool, Xero is rapidly growing into a bookkeeping giant. And like QuickBook, Xero is that it is designed to grow with your business across its different subscription options.

It also integrates with hundreds of third-party business solutions, many of which you likely already use like Gusto for payroll.

Here’s the full lowdown:

Pros:
  • Cloud-based and available on mobile
  • 3rd party payroll integration through Gusto and app marketplace
  • Integration with 3rd party services allows online payment collection
  • Simple inventory management
Cons:
  • Limited customer service and reporting
  • Fees charged for ACH payments

FreeAgent

Another cloud-based software, as a FreeAgent partner, we recommend it for freelancers, consultants, and other project-based businesses.

Pros:
  • Cloud-based and available on mobile
  • Doesn’t limit transactions behind a paywall
  • Supports unlimited users, clients, invoices and transactions for one monthly price
  • Ideal for keeping track of billable hours and expenses
  • Runs fully RTI-compliant payroll
  • Allows you to create and send estimates and invoices
  • Uses personalised Tax Timeline of upcoming deadlines and amounts due, cash flow, and profitability
  • Files VAT, RTI payroll and Self Assessment tax returns directly to HMRC (ideal for sole traders and limited companies)
Cons:
  • App development and compatibility for Android is lacking, but underway
  • Tax Timeline doesn’t offer a comparison of year-on-year comparison

Sage

Sage is one of the bigger brands, and it’s been around a lot longer than most.

Sage Business Cloud Accounting is specifically geared towards the needs of small to medium-sized corporations and offers two plans for small business owners.

However, it has been described as overly complex and difficult to use.

Here are the pros and cons:

Pros:
  • Cloud-based and available on mobile
  • Offers a free trial or demo before buying
  • Offers invoicing, expense management and reporting, as well as the creation of quotes, estimates, tracking, and inventory management
  • Provides monthly, quarterly, and annual financial reports and reports. These include balance sheets and income/cash flow statements
  • Produces comparison of financial statements e.g. year-to-year.
  • Many features are preset  and ready for the user to make management streamlined but also offer multiple customisation opportunities
  • Offers capabilities for budgeting or cash flow forecasting, job costing, auditing, and automated workflows, as well as industry-specific features.
  • Uses a central dashboard to access information and data in one place
  • Link your credit cards and bank accounts
  • Integrates with third-party apps
Cons:
  • Difficult to use and set up. May need a Sage expert to support you (Luckily, we are!)
  • Features can be complicated to use and need expert support
  • Homepage can become cluttered if not customised
  • Geared towards larger businesses.
  • Lack of documentation and support, often necessitating further support

How Rosemary Bookkeeping helps your business

Each online bookkeeping aid offers something different, with both strengths and weaknesses.

And many can be difficult to use without the right support.

At Rosemary Bookkeeping, we work with accounting tools to offer you and your business bespoke support with getting the most out of each software.

By regularly consulting your local Rosemary bookkeeper, you’ll be able to receive support specially tailored to you and your business, and we can take care of your bookkeeping for you.

From helping you choose the right software to use, software supply, training and data migration to a complete outsourced bookkeeping service – we can help.

Whether you’re just starting or looking to hire a bookkeeper to support your growth, the best bookkeeping tool for any small business is still a Rosemary Bookkeeper.

To take your first step towards stress-free bookkeeping, find your nearest Rosemary Bookkeeping branch to schedule a free, no-obligation consultation with your local expert today.

/by

Choosing the right accounting software for your business

How to choose the best accounting software for your business.

For any small business owner, keeping track of your incomings & outgoings is one of your most vital tasks.

Due to recent government initiatives around MTD (or Making Tax Digital), having a digital record of your finances is essential.

Thankfully, there is a wide range of online software options available. All of which claim to offer you the best possible service.

Some advertise more often and are more well-known, like QuickBooks and Xero.

At Rosemary Bookkeeping, we know businesses are as varied and unique as the people who run them.

What works for one person’s business doesn’t work the same for another.

To make the best move for your business, you need to look at what each service offers and figure out what works for you.

That’s why we’ve compiled a list of factors you should consider when selecting your accounting software.

What are the costs?

One of the main things to think about is, of course, price. And the price for accounting software can vary considerably.

There are packages at the lower end of the price range, but these will often be a more basic package.

Think about your business requirements now and in the future. Will a basic package be enough, or will you need more features further down the line?

Usability

The size and structure of your business will affect how many users there will be accessing your accounting software. Do more users mean more cost? Is it scalable if needed later?

Do you want your accounting software to be installed on a particular desktop, for example?

Something like this considerably affects your pool of available choices, as most systems are now cloud-based.

Especially with the new MTD regulations, we recommend a cloud-based system that you can access anywhere, without limiting your number of users.

However, if your preference is a desktop, there are still some good options such as the free, open-source, desktop software GnuCash.

Features

Work out what you need from the accounting software and what you need it to do.

Do you need both accounts receivable and accounts payable tools? Which reports do you need it to generate?

Do you need it to track inventory? Do you need it to include ancillary services, like time tracking, project management, and payroll?

Which to choose?

Of course, as bookkeepers ourselves, we have our preferences when it comes to software.

We work with all sorts of platforms and packages but there are a few we see time and time again.

These are:

Xero

Widely acknowledged as one of the top pieces of accounting and bookkeeping software – especially if you’re working on a Mac.

Xero is great if you’re just starting, or if you need your accounting to be straightforward. Another plus of Xero is that it is designed to grow as your business does.

We like that it’s affordable, easy to use, offers a ton of add-on features and integrates with hundreds of third-party business solutions, many of which you likely already use.

There is also a 24-hour email and live chat support function, meaning there’s always someone there to help you whenever you need it.

FreeAgent

Unlike many bookkeeping and accounting software products that limit your transactions, unless you purchase a more expensive package, FreeAgent supports unlimited users, clients, invoices and transactions for one monthly price.

Like many of its competitors, it is cloud-based software, but it also comes with a built-in project management feature.

These make it ideal for keeping track of billable hours and expenses. As a FreeAgent partner, we recommend it for freelancers, consultants and other project-based businesses.

QuickBooks

QuickBooks is another of the most popular accounting software packages out there (and for good reason).

QuickBooks works for all types of small businesses, with three different small business plans to choose from, plus a separate plan for the self-employed, freelancers and contractors: it’s got something for everyone.

Both new start-up businesses and bigger, established businesses have benefitted from its range of features, which cover basic bookkeeping to advanced accounting and business analytics.

Sage

Sage is one of the bigger brands, and it’s been around a lot longer than most.

Sage Business Cloud Accounting has two plans for small business owners, starting with invoicing, expense management and reporting, as well as the creation of quotes, estimates, tracking, and inventory management.

It’s most popular with retail-based businesses due to its ability to integrate with POS systems.

Sage also appeals to businesses with large finance departments thanks to its support for multiple users and payroll systems.

How Rosemary Bookkeeping helps your business

Each online bookkeeping aid offers something different, with both strengths and weaknesses.

This might make one a great fit for how you run your business or, by the same token, a terrible fit.

At Rosemary Bookkeeping, we work with you. We know that every business is different, and our bespoke service reflects this.

By regularly consulting your local Rosemary bookkeeper, you’ll be able to receive support specially tailored to you and your business, and we can take care of your bookkeeping for you.

From helping you choose the right software to use, software supply, training and data migration to a complete outsourced bookkeeping service – we can help.

Whether you’re just starting, or looking to hire a bookkeeper to support your growth, we’d love to help you on your journey to becoming the best business you can be.

To take your first step towards stress-free bookkeeping, find your nearest Rosemary Bookkeeping branch to schedule a free, no-obligation consultation today.

/by

What is Making Tax Digital?

,

Everything you need to know about MTD and how having a bookkeeper helps.

Making Tax Digital (or MTD) is part of HMRC’s ongoing initiative that has been underway since April 2019 to digitalise the UK tax system. Currently, MTD is focused on VAT submission but is set to grow to include other types of tax, such as Income Tax and Corporation Tax. The most immediate of these extensions is coming up soon, when in April 2022, the current MTD VAT will become extended to include businesses.

So, what is MTD? When and how will MTD affect your business? And how should you go about paying it? We have all the answers. Getting in touch with your nearest Rosemary Bookkeeping business lets you directly contact your local bookkeeping experts, who will help support you with any bookkeeping query.

We’ve also put together a post to answer all of your most burning questions on MTD. Starting with:

What is MTD?

MTD has two core components:

  1. Replacement of paper-based records and a requirement for businesses and organisations (including those with property-based incomes) to keep digital accounting records.
  2. Using compatible software to submit tax returns and updates to HMRC – The government will be removing their current online tax services when a business registers for MTD and will require businesses and organisations to use software compliant with their API (Application Program Interfaces) to submit relevant updates and returns to HMRC instead.

MTD Timeline

  • 1st April 2019: MTD has been in place since this date for the majority of VAT-registered businesses that are above the tax threshold of an £85’000 turnover or above. These included partnerships, sole traders, limited companies, non-UK businesses registered for UK VAT, and charities and trusts.
  • 1st October 2019: There was a six-month deferred start date for more complex businesses.
  • 1st April 2022: MTD will be mandatory for all VAT-registered businesses and organisations.
  • April 2024: MTD will become mandatory for Income Tax Self-Assessment (ITSA) for those who are self-employed and/or with a property-based income if they have self-employment and/or gross rental income of over £10’000.
  • April 2025: MTD ISTA becomes mandatory for general partnerships. Meaning it will now apply to corporate or ‘non-natural’ and non-limited liability partnerships with a turnover above the £10’000 threshold.

The immediate changes and how they affect your business

If, before April 2022, you were not already under the current MTD legislation, you will be required to sign up to MTD, keep digital records of VAT and submit this information to HMRC through an MTD compatible software.

It’s important to note that if your business has received an MTD exemption, this will still be in effect beyond 1st April 2022. To check if you are eligible, or apply for exemption from MTD, you can find guidance on how to do so via the HMRC website. If you’re concerned about the impact of MTD on your business, you can read more about its effects here.

MTD’s benefits:

  • It can reduce or even eliminate paper-based or manual tax processes. This allows you greater accuracy in tax returns, reduces the time you spend on administration, and gives you more time to maximise your business opportunities, productivity and profitability.
  • In the case that you opt to use cloud-based software, you’ll be able to see in real-time what is happening in your books and have better control over your finances, allowing you to up-to-date and well-informed business decisions.
  • Using compliant digital software means that submitting information to HMRC is far simpler and less stressful.
  • Some accounting software link directly with your bank account, further reducing the ‘paperwork’ and time spent filing taxes.
  • Digital software provides you with real-time management information so you can see how your business is performing.

So, if you have not already done so, you need to start weighing your options for MTD compliant software.

How Rosemary Bookkeeping can help

We understand that making the jump to digital can be scary and daunting. But, it’s not as costly or difficult as it seems – especially with the help of an expert bookkeeping service like Rosemary Bookkeeping. The benefit of changing to MTD in April 2022 is that everybody else has already had around three years of experience working with it.

With a professional bookkeeper from Rosemary Bookkeeping to help you, making your tax digital is a very simple process. We have been operating MTD for VAT submissions since its inception in 2019 and know its processes inside and out. Going digital may be a scary prospect, but by using a bookkeeper, your tax may be going digital, but your bookkeeping experience isn’t. We will assist however you need to get accustomed to the software, or simply do the work for you and make the process of sending returns to HMRC straightforward. We will also send generated returns directly from the software so that you have a well-kept and organised backlog of your records.

The main drawback of digital services like Xero and QuickBooks is that they depend on your own financial knowledge and ability to work through MTD yourself. Our bookkeeping experts are trained to work digitally using MTD compliant software like Xero and QuickBooks and Sage, but are a real-life human presence that can reassure and guide you through the process, so you’re not going it alone. As Rosemary Bookkeeping is well-versed in MTD and online services, we can also offer advice on which software would be best for you, and often offer competitive prices for software subscriptions.

Additionally, we also offer an online exchange of documents, so you’ll be able to upload photos or scans of documents so that we can process them on the bookkeeping software. We also use Apps like AutoEntry or Hubdoc, which not only attach documents directly to the record on the software but also automate some bookkeeping processes – saving you valuable time and money.

To start receiving expert help and advice from your local bookkeeping experts, find your nearest Rosemary Bookkeeping business today.

/by

Bookkeeping is more than software

You can’t leave it all to tech.

Bookkeeping is tricky. Especially for small businesses, when you are juggling a million other things. So, it’s understandable that you want to ease the burden of this task any way you can. Nowadays we can turn to technology to solve most of our problems, and bookkeeping is no exception. You may have even seen adverts praising digital bookkeeping aids. Popular software like Xero and Quickbooks promise to make bookkeeping easy, help you track and manage expenses and stay on top of taxes. But how true is this?

What bookkeeping software does

Quickbooks promises three major things:

  • The ability to stay on top of taxes
  • The ability to track and manage expenses
  • Keeping data that allows for ‘no-nonsense’ payroll

This technology is all designed around one central premise: streamlining your bookkeeping experience. Everything bookkeeping software do is about using technology to save you time.

The bottom line is, using online software depends on you. Your ability to use this software depends on how much you know about bookkeeping and how up to date you are with recent legislative changes etc. For example, Quickbooks and Xero both rely on the use of VAT codes. But they do not provide support on what these are, and how to use them. For all their data and efficiency, they do not help much if you don’t know a lot about bookkeeping. As a result, relying on this software means taking a big risk depending on how much you know. If you are not confident with your books, you would still be better off using a bookkeeper.

What a bookkeeper does better

Having a personal bookkeeper involves all the benefits of bookkeeping software and more. They help you keep on top of your VAT returns, payroll and tax obligations. A bookkeeper also helps you track and manage your expenses, produces debtor and creditor reports to help with your cash flow and daily management of your business. They provide you with industry-specific knowledge and help you make more educated business decisions. This means you receive support all year round with any bookkeeping queries you might have. With a bookkeeper, you are not reliant on technology. QuickBooks and Xero are fantastic tools that can automate a big part of the bookkeeping process, but when it comes to technology, errors made by automated systems cannot be avoided and need somebody with experience and knowledge to check if the entries and codes are correct. Using a bookkeeper allows you not to be reliant on the software and automatic data entry. A bookkeeper also assures that your business is compliant, you meet all the deadlines, and your information is archived properly. Thanks to this you can avoid costly mistakes, save time and money. knowing that your business finances are in good hands.

For a reliable and professional bookkeeping service, contact your nearest Rosemary Bookkeeping business today.

/by