Moving into the 21st Century - MTDfb

[Woody3]

We are now required to keep our accounting records in digital format due to the upcoming MTDfb. At the moment the records are done with pen and paper, so it's going to be quite a change for us.

We are a food retail shop.

I'm unsure what software to use - Sage etc doesn't really mean much to me at this stage.

All we are after is something that we can log:

- Incoming Invoices
- Cash/Cheque Payments
- Cash Sales
- Banking
- Recording incoming/outgoing VAT

and is cost effective (read cheap) to use.

What software would be best to suit our needs? I'm holding back from asking our accountants at this stage, as they'd be likely to make us use something that suits them more than it would suit us...

[Eric Mc]

Woody3 said:

and is cost effective (read cheap) to use.

What is your definition of "cheap"?

Are you VAT registered?

Is your annual turnover over £85,000?

[Woody3]

Yes, T/O is in excess of £85k.

Cheap as in, we are a micro business, in a ex coal mining, Northern town, so could do without spending £100+ a month on software that we've managed to do for free on pen and paper for the last 30+ years. And yes, I'm a tight Northerner

[Eric Mc]

You don't say how much over £85,000 your turnover is (I'm not asking either).However, I agree that £100 per month would be too much for a business only turning over around £100,000.

Do you need -

Double entry book-keeping
Debtors' and Creditors' ledgers
Multiple bank control accounts
Do you run payroll?
Do you use CIS sub contractors?

Has your accountant spoken to you about what you might need.

At the moment. MTD is only being introduced for VAT purposes. The implementation date for this is currently set for April 2019. HMRC originally wanted to introduce MTD for sole traders and partnership accounts (to replace Self Assessment) in April 2018. This plan has been abandoned (thank God).

However, they are hoping to get the Self Assessment MTD system up and running by April 2020 - but only if the VAT version works OK.

Interestingly, the Public Accounts Committee told HMRC that they should give up on all this as they are trying to do too many things at the same time and it is a recipe for chaos. The PAC said they should be devoting 100% of their energy to working out how VAT and Customs Charges will need to be amended after Brexit.

[jammy-git]

Based on the requirements you've given, I'd say Kashflow because it's cheap. Xero if you want something a little more polished and easier to use and don't mind spending a little extra.

[Kooney]

I’m an accountant if you want to feel free to ask any questions regards to accounting software, used a lot of them and know some less obvious ones for a good price.

It all starts with recognition with what digital can do for you, other than the obvious for statutory accounting.