Cloud accounting innovator in Haverhill continues to lead the way
A Haverhill company, established in 2014, to offer cloud based accounting services, is ahead of the game in the wake of government legislation coming into force from April 1.
The Making Tax Digital (MTD) for VAT legislation rules that businesses with a turnover above the £85,000 VAT threshold will have to keep their VAT records digitally.
They will also need to provide VAT returns information to HM Revenue and Customs (HMRC) through MTD compatible software.
For many businesses still operating paper or desk based accounting systems this change could prove challenging.
Paul Donno, director of 1 Accounts Online Ltd, recognised the benefits that online accounting could offer five years before HMRC’s initial consultation on MTD, in August 2016.
He successfully championed the “cloud”, disrupting the traditional accountancy model and growing a successful company in the process.
Back in 2014 the two directors, Paul and Jenni Donno, worked from home and had a handful of clients, but now they have a team of eight, operating from CXG House, High Street and over 200 clients.
In advice to its members, the Institute of Chartered Accountants in England and Wales stated: “Agents will need to take steps to prepare both their own practices and their clients for the disruption that Making Tax Digital and digitalisation will cause to the market for accounting and tax services.”
Paul explained: “With less than two months to go until the date for compliance for MTD, ‘Project Fear’ seems to be running rife within the industry!
"Moving to an online accounting system will involve some disruption but the returns to that business, if the transition is managed properly, will be almost instant.
"Online accounting systems, like Xero and Sage Accounting, save business owners hours on their admin. All of a sudden they get their evenings and weekends back and have more time to spend with family and friends.
“Access to real time information for your business can be transformational. Cash flow is easier to control, you can track profitability and your decision making will be far better informed.
“Our message to those businesses not yet MTD compliant is not to be afraid. Embrace the technology, it is user friendly, even for a technophobe, and it will make a difference to not only your business but your life.”
If you would like to find out more about Making Tax Digital please contact Jade on 01440 844986 or to find out more information about 1 Accounts Online Ltd visit www.1accounts.co.uk.