HINTS & TIPS
alone domestic reverse charge and other complexities . To top it all , Making Tax Digital for Income Tax Self-Assessment ( MTD for ITSA ) which will dramatically impact sole traders is less than two years away .
So here are some of the things that you should expect a decent system to do for your business . This is hopefully what might bring “ Digital Transformation ” to life for you .
For sole traders , you would expect easy quoting and invoicing and producing all the information needed for income tax self-assessment and MTD for ITSA . But in addition , you would expect help with the Construction Industry Scheme ( CIS ) and Domestic Reverse charge ( DRC ). Plus , you would expect all trade-specific paperwork to be able to be generated on the go .
All competent person schemes should be supported along with health and safety related forms as required .
Landlords with multiple premises and commercial organisations and local authorities spread across multiple sites shouldn ’ t pose a problem . There should be help with marketing so for instance it should be easy to add trade association memberships and qualifications to paperwork . Obviously , there ’ s a need for before and after pictures and being able to embed multiple pictures , diagrams etc into quotes . That is as well as being able to capture client signatures in the field .
For businesses with staff , you would expect to get all the benefits that sole-traders get . In addition , you would hope that staff could be tracked , there would be a chat and notification system for contacting all staff and that all staff records could be maintained . That would include tracking holidays , sickness and qualifications . There should be a powerful diary system which allowed easy scheduling of staff .
For both sole-traders and businesses with staff , we should expect the app to work off-line in the field , so if no signal is present you don ’ t have to revert to paper and pencil .
Of course , it should be easy to use but should also have all functionality available on the mobile version , so that smaller business owners can keep track of everything when they want to , even on holiday . Given the specific needs of the trades , it should be quick and easy to get information in , with as many shortcuts as possible like postcode lookup for addresses , automatically remembering previous entries and single click invoicing from quotes .
The problems of the traditional approach
It probably seems that nothing is easier than using a pen and paper to meet the various regulations , but that isn ’ t true . The reason why most of the business world , including small businesses , along with every under 30-year-old has embraced apps is that it ’ s easier than doing things in a traditional way .
Why accounting systems aren ’ t the answer
One point is worth mentioning . Accounting systems have improved a lot in the last few years . With new cloudbased systems like Xero and Quickbooks and with even late-to-the-party Sage joining in , accounting systems have become more accessible and easier to use .
What ’ s important to remember is that accounting systems are designed for , well , accountants .
So , accounting systems may be able to produce invoices and your books , but they won ’ t be able to automate all the other aspects of your business . They won ’ t generate trade-specific paperwork , aren ’ t designed for installation projects , won ’ t help with marketing and won ’ t help to manage your workforce .
You will always be better off with a trade-specific app which helps you to run your entire business . This should either produce your tax return as a side benefit or interface all necessary details to a dedicated accounting system that will keep your accountant happy .
Choosing a solution
My hope is that some of the thoughts here are helpful in planning the future of your business . If you haven ’ t yet tried applying technology , maybe now is the time to have a go . If you have previously used some “ point ” solutions ( apps that just solve just one problem each ) maybe now is the time to look for a more comprehensive solution that puts everything together in one place .
Either way , I wish you all the best .
www . powerednow . com
About the author - Benjamin Dyer is CEO and co-founder of Powered Now . Powered Now ’ s mobile app aims to make it easier for installers , electricians , builders and other trades to run their businesses .
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