For lots of businesses, there is a need to comply with Making Tax Digital (MTD). To do so, these businesses must choose the right software that offers services that best suit their needs.
Firstly, what is MTD? Making Tax Digital (MTD) is an initiative that is meant to change and enhance the tax systems in the UK. It targets making taxation to be digital. Accordingly, any VAT-registered businesses need to comply with the MTD initiative by 1st April 2019. Unique software called MTD-compatible software is required by these businesses. The software makes it possible for business entities to record their transactions and submit returns digitally.
In this regard, the importance of Making Tax Digital Compatible software can never be overemphasized. So, how do you choose the best Making Tax Digital Compatible software? Follow the steps below:
Understand the objectives of your business
This sounds obvious but it needs to be reiterated. Take your time to evaluate the requirements of your business before selecting any MTD-compatible software. You should have a clear idea of what you will be using the software for before choosing it. Until you are certain of your business objective, do not choose any MTD-compatible software.
Consider the features you need
Businesses differ in their complexity and size, and these factors will play a pivotal role in determining the MTD-compatible software that best suits their needs. Notably, different MTD-compatible software has various features. Therefore, you must pay attention to the features that your business requires when selecting the software.
Think about the ease of use
The IT literacy level of your staff will be an important factor at this point. If your employees are highly skilled IT professionals, they may be able to use most MTD-compatible software. However, the reverse is the case for staffs that have poor IT skills.
Furthermore, it is worthwhile to consider the connectivity of the software because this factor also affects the ease of use. Some software may be cloud-based while others are not. A handful of software may allow connectivity to mobile devices while others may allow you to integrate them into your existing applications. Due to the essence of the connectivity to how easy it will be to use the software, you must duly consider it before choosing MTD-compatible software.
Cost of the software
When running a business, every expense counts. So, you should think about the cost of any MTD-compatible software when choosing it. The majority of the software providers require users to subscribe monthly. Therefore, the cost of the software may be recurring expenses.
If you have issues with deciding whether the software will be suitable or not, consider using the trial version first. Some of the software providers offer trial versions which allow you to get some or all of the services for a limited period. If you like the software, you can then go ahead to subscribe for the paid version. However, you must understand that many of the providers do not provide trial versions.
To avoid penalties, you need to make your tax digital today by getting reliable MTD-compatible software. Do not look any further, get MTD for VAT now and submit your VAT returns online with so much ease.