Digital Tax
Accounting has evolved, but have you?
The noise around tax administration going digital is getting louder, and now is the time to prepare your firm
Cloud accounting has been the first step in a new revolution for accountants. But with Digital Tax inevitably coming soon, outsourcing could be the next step for you in delivering a more powerful and more effective service to your clients.
What will be the levels of digitization?
Business owners have already started bracing for Digital Tax, with many beginning to proactively use their accounting software. It’s important that Digital Tax is making firms embrace the cloud, but what exactly will be involved?
Level 1 –“E-file”
Businesses will have the option to use a standardized or electronic form to file their tax returns and other income data.
Level 2 –“E-accounting”
Following electronic submissions, businesses will be required to submit accounting or other source data to support the filings.
Level 3 –“E-match”
The government will then begin accessing additional data and matching this across tax types in real time.
Level 4 –“E-audit”
Level 2 data will be analysed by the government and cross-checked in real time to prevent fraud or unintended errors.
Level 5 –“E-assess”
The government will use submitted data to assess the tax without the need for tax forms, giving taxpayers a limited window of time to audit the calculations.
How can outsourcing help me prepare for Digital Tax?
Everything comes down to client service, and Digital Tax will only accentuate the value of advisory services.
There will always be a market for compliance services, but over time this will become even more of a core service, and over time, technology will eventually replace this. So how does outsourcing help you prepare?
Embracing the cloud
Moving to the cloud is an essential part of providing advisory services. Outsourcing your compliance work gives you the freedom to do this with the technology to support you.
Systemising how you work
With automation and processes at the heart of your firm, the technology will keep your firm together and give your staff the ability and the tools to provide for your clients.
See how MTD has transformed firms:
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