MARCH 2019 | 13
News
Read online at www.proinstaller.co.uk
From the
‘ start
of April,
Reasons for not using
spreadsheets and
copy and paste
The first and most obvious
reason for not using spreadsheets
and copy and paste is that the
solution will only be allowed for
12 months. So, if you use this
approach you will need to learn
about it and start using it. Then
12 months later you will have to
learn a new method. So why not
just make a single change?
The second reason is that it will
be more work. Entering lots of
sales invoices into a spreadsheet
plus copying and pasting totals is
more work than using a system
where the invoices can be pro-
duced automatically.
Plus, re-entering data and copy-
ing and pasting makes errors more
likely. For instance, when copying
and pasting, simply failing to high-
light the first digit of a number
every business
reporting VAT
on a quarterly
basis will have
to comply.
Ignoring the
deadline will
lead to heavy
fines.
’
you are copying can lead to a ma-
jor error in your VAT return with
attendant fines etc.
Then it should be considered
that with MTD for Profit and Loss
following not that long afterwards,
it’s worth getting a system that
will be able to handle that as
well rather than have yet another
change.
The final reason is that in not
implementing a full system you
may well miss out on the benefits
that you can get from that imple-
mentation.
Is this bad for
installers?
From the start of April, every
business reporting VAT on a
quarterly basis will have to com-
ply. Ignoring the deadline will
lead to heavy fines. However,
it should be noted that HMRC
say they will make allowances
provided companies have made
a genuine attempt to implement
MTD.
Undoubtedly the initial impact
of MTD for VAT and the follow
up MTD for Profit and Loss will
be more costs and disruption.
Against this, installers should
see benefits in the medium term
as it is fundamentally easier and
cheaper to run a business on
a computer than from memory
and bits of paper. There is an
initial learning curve to climb,
but after that the benefits should
follow.
The good news
Trade companies implementing
systems can get some large benefits
particularly if they have some em-
ployees. The sort of benefits report-
ed by my own customers include:
• Much faster creation of quotes
and invoices including while
at customer’s premises. These
can be to a professional stand-
ard. All calculations, covering
totals, VAT on invoices and
more are done automatically.
• Sending documents by text
or email all in one click is
quicker and easier. It also gets
a better customer response
while being cheaper than
stamps and paper.
• The information is already on
a system, allowing CIS and VAT
returns to be done automati-
cally. MTD for profit and loss
will be able to be done in the
future with no further input.
• If all costs are on the system
too, which is needed for the
MTD for VAT return, it will
be possible to see the profit
on jobs with no further
work
• With everything in one
place, there’s no more hunt-
ing around for bits of paper
everywhere.
• All previous quotes and in-
voices can be easily viewed.
In conclusion
There are very few people in
business who enjoy changes to
regulation and keeping up with
every change is particularly hard
for small companies. Unfortunate-
ly, this is a change which is com-
pulsory. The best approach is to
get it done as quickly as possible.
All of the best with that.
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