Solving the BIG Digital Accounting Problem

Kevin Whitehouse:

Author of “MONEY TALKS – So Why Aren’t You Listening.” How to find the hidden messages in your numbers that could mean the difference between your business going BOOM!! Or BUST!!

Accountant and the UK’s leading expert in Kashflow a cloud based accounting system, business owner advisor to many and and regarded by some as mentor Kevin is on a mission to help business owners embrace the subject of accounting and bookkeeping within their business and tap into the power of knowing your numbers.

I’ll also share with you the biggest change that is facing all of us who run a business and I’ll share the real issues with Digital accounting and how most will simply not be ready.

Overview:

It’s official, the Government’s number 1 priority after Brexit is Making Tax Digital.

This affects every business and how we all go about keeping accounting records and more importantly reporting to HMRC.

You may or may not have heard about Making Tax Digital, but either way, Brexit has delayed the implementation, but like an oncoming train, it’s coming.

Accounting is not new, it has been around since trading began but it is believed that in c. 1497 Luca Pacioli wrote the first book on the subject of accounting.

For hundreds of years not a great deal changed, business owners kept books of account, or the books of prime entry and for many years the bookkeeper was highly respected, but over time and in particular since the introduction of computers, there is often a general belief by many who really don’t understand that the bookkeeping and accounting task is somewhat low skilled and can be done with a SNAP of a photo and running some reports on your phone…

There are 3 types of accounting process I see:

Manual accounting systems, either hand written books manually written up or a desktop computer system with someone manually keying data in to it.
No ownership of any system at all, the business owner passing the responsibility onto someone else “My accountant does it all, I leave it them…”
Cloud based system, with automation, cognitive computing and machine learning, smart business owners working collaboratively with the skilled professionals providing business owners valuable live information, not just data.
Many businesses will fall into category 1 and 2 as many, including the professionals do not understand what option 3 is.

Making Tax Digital will change all of this, for all of us.

It’s probably one of the biggest changes to the accounting systems in the UK ever and when it starts to go live, there will be carnage and chaos as even many in the accounting profession are struggling with what Making Tax Digital really means.

It starts in April 2019, for any business that is VAT registered, VAT Returns must be submitted digitally via a cloud based digital system that connects to HMRC’s system.

Choosing the right tools is only the beginning.
Quarterly reporting for VAT is already a thing, and over the next few years this will be done digitally, followed by eventually the need to submit our accounts and Tax Return information quarterly too…

The software infrastructure is and will change at HMRC and you will have access to your whole tax file, faster and easier.

The solution:
In the book “Scaling Up” by Verne Harnish, he says:

“Accounting is often underappreciated, if the number one weakness of growth firms is marketing, then the number two problem is accounting, and it is often underfunded as a result”

He further goes on to say:

“We have seen profits and cash double within a year, when business people devote just a little more attention and resources to accounting”

Let’s face it, accounting bookkeeping is not always perceived to be the most exciting subject and of you think this is all a bit dry, dull and not for you, then STOP.

Running a business is tough, scary and lonely sometimes.  You need all the help you can get, but if the number one goal of being in business is to make money, then doesn’t it make sense to get to grips with bookkeeping and accounting?

In this course, I’m going to take you on an accounting journey, I’m going to walk you through step by step from start to finish and at the end of it you will understand the principles of the whole subject, and know what to do to improve the systems you have and towards the end I’ll give you some highly valuable strategies and tactics to automate the process so you can focus on et most valuable part of the system which is step 5 of my fundamental 5 Step process I’ll also teach you along the way.