April marks the start of a new tax year, and what better time to think about streamlining your business finances. Staying on top of tax is incredibly important, no matter what size your business is, and in recent years HMRC has pushed for digitisation through Making Tax Digital (MTD) to ensure more accurate filing of accounts.
Tax doesn’t have to be a daunting process, particularly when you have software solutions like Sage who offer a user-friendly, HMRC-compliant system that keeps your finances in order. Let’s take a look at how Sage simplifies digital tax solutions for businesses.
MTD is a government-initiated scheme designed to make it easier for businesses to get their tax correct. It requires businesses to keep digital records, submit tax returns using compatible software, and provide quarterly updates to HMRC.
Sage is one of the HMRC-compatible software solutions, allowing businesses to manage and submit VAT returns digitally and easily. Sage allows users to record and track transactions digitally, automatically calculate VAT, submit returns directly to HMRC, and keep a full audit trail of submissions. This removes the need for manual entry, which is often where mistakes happen.
1. Real-time financial visibility
One of the main advantages of Sage is the real-time financial insights it provides. Tax shouldn’t just be about your figures at the end of the year, you should be keeping an eye on things each month and adapt as necessary. With Sage you can monitor cash flow, track expenses and manage your VAT liability throughout the year. With this proactive approach this means there are no last-minute surprises and businesses can plan for tax liabilities in advance.
2. Time-saving automation
For those businesses who are more traditional and have manually entered data for years, a software solution like Sage can feel like a breath of fresh air (once they have been trained on how to use it!). Automation is a key feature of Sage, with instant invoice generation and tracking, receipt capture via smartphones & automatic bank feeds and reconciliation. By automating the repetitive tasks, Sage allows you to focus on other areas of the business.
3. Support is on hand
Tax can be tricky, particularly with regularly changing rules and regulations. Once you have Sage software in your business, that isn’t it – they have a solid software support system in place to help businesses get the most out of their software. Of course if you choose Reality Solutions as your Sage partner, then we are always on hand to help our clients too.
4. Scalable for growing businesses
As your business grows, so do your financial needs. This is where Sage comes into its own, it is designed to scale with businesses. With the ability to add modules such as pensions & payroll, reporting and project tracking as you go along, Sage is a flexible accounting solution. Gone are the days where you have to switch software every time you expand, just simply upgrade with Sage.
5. A smart investment
The new tax year is a great time to rethink your processes, and if you are still using spreadsheets or juggling multiple systems, then it is time to change. Switching to Sage can help save you hours of administrative time, improve cashflow management and reduce your risk of HMRC penalties. If you want to build an agile business, it is time to review your accounting software and make it work for you.
If you want to stay compliant while simplifying your digital tax, Sage is a no-brainer. With intuitive tools, HMRC compliance and scalable features, Sage simplifies digital tax solutions for businesses globally. Here at Reality Solutions, we are Sage partners and can help make the transition to Sage easy and stress-free. Contact us today to find out more.
*This article contains general information in order to assist all of our customers and is meant for guidance only – there are no guarantees that the information we provide will be suitable for your particular needs. If you require specific assistance, we recommend that you seek professional guidance on your individual circumstances. Reality Solutions are in no way responsible for any loss or damage arising from any information contained within our articles.