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What Does Making Tax Digital Mean For My Business

What Does Making Tax Digital Mean For My Business?

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Unless you have been living under a rock, you will have heard about Making Tax Digital by now. From April this year the government has begun live testing of the system and from April 2019 Making Tax Digital will force businesses, which are above the £85,000 VAT registration, threshold to keep all records necessary for VAT purposes online.

So what does Making Tax Digital mean for your business?

Making Tax Digital allows small to medium business owners to keep online records of their income and expenditure for Income Tax purposes and send quarterly updates of this to HMRC via their payment software app.

If you are a business that is currently keeping your records in a cashbook, on a spreadsheet or on non-Making Tax Digital-compliant software then you will need to make changes. As of April 2019 you will need to change your systems and processes because you will no longer be able to log-in to HMRCs website and key in your VAT return figures.

When should I get everything in place for Making Tax Digital?

While many businesses are holding out until the last minute, we would highly recommend that you do not wait for Making Tax Digital to apply legally for your business, but instead voluntarily comply with Making Tax Digital for your VAT so you are ready and prepared for when it does become a legal requirement for your business.

By getting ahead of the Making Tax Digital deadlines you have the time to change your bookkeeping processes and also get to grips with using the new software. If you choose to change to Xero we would be happy to help you move the business across and we can train you and your team so you can get the most from the Xero system.

Changing accounting software can be tricky so to avoid last minute rushes, panics and headaches we would recommend that you give yourself plenty of time to plan for Making Tax Digital, because April 2019 will be here before you know it.

For a free report on what you need to do to comply with Making Tax Digital rules, please click the button below to get a free report.

What Making Tax Digital Means To A Small Business

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Here at Direct Peak, we are specialists Xero accountants in Peterborough. We work closely with our clients to help them get the most from their accounting and bookkeeping. With ‘making tax digital’ discussions and updates taking place all over the media, internet, tv and pretty much everywhere you look – it is not surprising that we are being asked about it.

So, we thought we would put together a few main points to help small business owners understand what Making Tax Digital will mean to their small business;

All businesses and landlords will be affected by Making Tax Digital
Making Tax Digital is compulsory and dependant on your business circumstances will need to start using it in 2018, 2019 or 2020.
You will need to record all tax affairs digitally and this can either be done by using online accounting software, like Xero accounting software, for example.
Your accounts team, finance team or your accountant will provide the information to HMRC on a quarterly basis, as electronic information.
It is expected that Making Tax Digital should reduce the amount of time, effort and stress it currently takes you to prepare and file your taxes.
Making Tax Digital will enable you to get a centralised view of all your tax information, entitlements and liabilities. This means, as a business owner, you will know exactly how much you owe at any point.

While Making Tax Digital will not make filing taxes any less financially painful, it should be faster and easier to prepare taxes, report taxes and file your taxes.

If you’re concerned about how Making Tax Digital will affect your business and what you need to do to make sure your business is ready for Making Tax Digital then please check out this information we have put together.

Alternatively, you can contact us directly and we will be happy to answer any questions you may have about Making Tax Digital for your business.

 

What Are The Benefits Of Accounting In The Cloud?

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Chances are that your clients do most of their business in the ‘cloud’ so why shouldn’t you do your accounting and bookkeeping in the cloud too? It won’t make any differences to your clients as they will still be able to pay you as they have done before, but the benefits to you and your business will be massive game changers.

With cloud-based accounting, using a system like Xero you will only need one file and this can be easily accessed by you in the office, by the team on the road, or from your holiday destination when you are taking a break from the office. It also means that your Xero accountant can access your system from wherever they are. This efficiency that cloud accounting offers can save you time and money.

You don’t need to worry about files being stolen or misplaced because cloud accounting is safe and secure. Cloud accounting systems are also instantaneous which means as soon as changes are made my colleagues, payments come in or bills are paid then it will show on your accounting system straight away. You will know what is happening with your business finances at all times.

We touched on it earlier, but a huge benefit of cloud accounting systems like Xero is that they are completely flexible. This means you can access your accounts from anywhere and from any device that has an internet connection. This means you can check how much money is in the account if you want to place the last order, check a client has made a payment on the way to a meeting with them, or check a payment has gone out to a supplier.

Cloud accounting with systems like Xero needn’t cost the earth and will work on a subscription basis that is affordable.

Why not contact us now to see how Xero cloud accounting could work for you and your business?

Peterborough Small Service Business Award Finalists

Peterborough Small Service Business Award Finalists – Peterborough Small Business Awards

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We recently found out that we were not only nominated for the Peterborough Small Business Awards. We also made it to the Finalist level for The Peterborough Small Service Business of the Year awards category.

As such a new and small business in Peterborough we are really pleased to have been recognised for this award. But, even more so to be the only accountants in Peterborough in the Peterborough Small Business Awards finalist list.

We have stiff competition for the Peterborough Small Service Business of the Year award category. We are against 5 other businesses which are Creative Content Company, Ethos Nursing, So Brand Creative, Streets Art Hire and Wilson & Co Homes. As you can see, these are all really good, strong businesses. Here at Direct Peak we are thrilled to be noticed and recognised in the same category as these other businesses.

In everything we do, we put our client first and help them as much as we can. This is why it feels so good for us to have been nominated for this award by people that see this as something we do. We are grateful to the people that took the time to nominate us – whoever you are!

Later in August a public vote will open and this makes up part of our total score. We will also get a call from a mystery customer, which is another part of our award total. And, on the 3rd September we will be attending an interview with the judges to take about who we are and what we do. The interview makes up the final part of our score.

Then we have to wait until October, when we will be attending the Peterborough Small Business Awards to enjoy a night of food and dancing. This is when we will find out who the winners are for all the awards.

We would like to congratulate all finalists on getting this far in the awards. We wish you the best of luck for the finals and look forward to seeing you all there.

Do Small Businesses Need To Hire A Xero Accountant?

Do Small Businesses Need To Hire A Xero Accountant?

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Xero accounting software recently completed some research to see when business owners felt that an accountant in Peterborough should be hired for business. What they found was some real uncertainty about when an accountant should be hired. There was also uncertainty about the actual value an accountant brings to a small or start-up business.

The biggest reason that small business owners employ the services of a Xero Accountant in Peterborough is because they didn’t start their business to be swamped in financials and paperwork. So it is the first job they take off their list to outsource to someone else.

This makes perfect sense. Why wouldn’t you hire a Xero accountant in Peterborough to take care of the numbers while you focus on what you do best; running a successful business!

As a small business you will always be looking for different ways to save money. You may see a Xero accountant in Peterborough as an additional expense that can be taken out because it is unnecessary.

On paper this may be the case. But tasks such as organising invoices, collating receipts and filing taxes can be extremely time-consuming. This is especially the case for someone without huge amount of experience.

The best Xero accountants in Peterborough will save your money by taking these time-consuming tasks off your hands. However, they will also always be looking at ways that your business can make more money. When you hire a good Xero Accountant you will find them to be more like coaches. They will encourage you to achieve more for your business.

An accountant can add huge amounts of value to your business in various ways. This could be such as increasing your revenue, reducing your expenses, planning your cash flow, helping grow your business and business planning. They can even help at identifying new market opportunities that you may not have considered before.

The added bonus of using could accounting software, such as Xero, is that you don’t need to hire a Xero accountant in Peterborough full-time because they can work remotely using the same date from their own office.

Invoicing Tips From Small Businesses For Small Businesses

Invoicing Tips From Small Businesses For Small Businesses – Xero Accounting Services in Peterborough

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Here at Direct Peak we work closely with Xero and offer Xero accounting services in Peterborough to small and medium businesses. Xero have recently been analysing over 12 million invoices to discover some revelations about getting paid on time. They also asked small business owners for their own tips and tricks too.

As accountants offering Xero accounting services in Peterborough we want to help our clients achieve more with their businesses and accounting software. We have put some of these invoicing tips for small businesses together for you to help you get paid on time or sooner;

However, before we start we’d like to make you aware of the fact that almost half of all invoices are paid late. While some businesses are great at getting paid what they are owed on time, other businesses are waiting weeks or months to get paid. It’s important to bear this in mind when you are reading these tips as it could help you be one of the businesses that gets paid on time, every time.

  • Make sure you send out your invoice payment terms before work begins. In this document you can set out the tone for the transaction such as what forms of payment your will accept, the currency or currencies you deal in. Also include what your late-payment penalties are and if you charge them as well as when from.

 

  • It is essential that you are clear on your due date too as this is when you are expecting the client to pay you by. While 30 days is more common among small businesses, this is changing.

 

  • Between 70% and 80% of businesses give 2 weeks or less as their payment terms and more than half of those businesses request their payment within 7 days. If you are serious about business and work hard to meet your client’s deadlines, why shouldn’t you be paid quickly?

 

  • Remember however, it doesn’t matter how short or long your payment terms are – if you don’t send the bill on time then you won’t get paid. The payment clock doesn’t start ticking until they have received the invoice. Why not use templates through Xero that enable you to speed up your invoicing process so you can send invoices quicker and get paid quicker too?

 

  • It is okay to chase payments from your clients. You don’t need to wait until they are 1 month late before you can start chasing. You could set up a friendly reminder email as the payment due date approaches and then follow up again as they go past the due date. If you don’t have the time to chase, or to save you time from chasing outstanding payments why not use Xero to automatically send reminder emails for you?

 

If you need help with invoicing, your invoicing process or chasing payments then why not give us a call? As a business offering Xero accounting services in Peterborough we would be happy to help you with advice, guidance and support.

Why Small Businesses Should Migrate To Cloud Accounting Software?

Why Small Businesses Should Migrate To Cloud Accounting Software

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There are so many benefits to migrating to cloud accounting software, especially if you are a small business. It not only costs less and makes your work life balance easier but it also streamlines your business processes.

As professional Xero accountants in Peterborough we have helped many clients migrate their accounts to Xero as a cloud accounting software. But there are lots of benefits with any cloud accounting software. We have listed the top four benefits for small businesses;

  1. It’s Easy

Cloud accounting software like Xero has been designed to be easy to use by non-accountants. You’ll also find lots of ‘how to’ videos online that will help you if you get lost or forget how to do something. However if you’re using Xero you are always welcome call out Xero specialists in Peterborough and we will be able to help you.

  1. It’s Safe

Previously with older accounting systems you will have had to constantly back up your cloud accounting software. But with cloud accounting software your accounts are completely safe and secure. Xero will give you a cast iron guarantee that your data is completely safe and secure, whenever you need it.

  1. It’s Flexible

You no longer need to be stuck in the office to do your accounts. You can do them from wherever you are as long as you have an internet connection. You also don’t need to select one person to have the Xero log-ins and have the accounting software on. Everyone in your office can used the Xero cloud accounting from any device if you choose to give them access.

  1. It Increases Productivity

Cloud accounting software like Xero has many plug-ins and innovations that enable the user to produce quicker and more efficient results with less input. You can now have all the business information you need at your fingertips. This will allow you to boost productivity, expand into new markets and make services more accessible or simply make more profit.

 

If you would like a free, no obligation consultation of your accounts and how Xero accounting can help you then please contact us directly.

Xero Training in Peterborough

We Offer Xero Training In Peterborough

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Here at Direct Peak we offer Xero Training in Peterborough to help our clients get the most out of Xero for their business. Our Xero training will empower you to understand all the amazing features that Xero has to offer and how you can use these with ease to improve your business performance.

We can offer Xero Training in Peterborough from our office, at your office or even over Skype if you would like online Xero training. We can tailor the Xero training to suit your individual needs and requirements, from a one hour Xero training session, right through to a full day Xero training session just for you or for you and your team.

Our Xero training course in Peterborough will help get you and your business on the right track financially.

What Does Our Xero Training Include?

  • We will show you how to really use Xero once your account is set up so you can get the most from it. This will also serve as a great refresher course as we go through any new Xero updates and features you may not have noticed.
  • You’ll learn how to manage debtors with the sales dashboard, chase debtors and sending customer statements so you can get paid by your clients on time, or sooner.
  • We can show you Xero add-ons that will help improve the efficiency of your business; we will show you how to use each of the cloud apps that you need to enhance your business operations.
  • We will teach the basic functions of payroll in Xero including the setting up of payroll, the pay template, timesheets and how to process pay runs and reports so you can manage your own payroll in house.
  • We’ll show you how to review, edit and submit VAT returns for your business directly from Xero to HMRC. We will also show you the basics of book-keeping and how you can apply that understanding to your business.
  • There are some amazing and truly powerful reports available through Xero and we can show you the different types of reports that you need for your business along with how you can make the most of them.

Like we said; our Xero training in Peterborough is tailor-made to meet your individual needs. Whatever you need help with on Xero we will put together the right Xero training for you. We can offer all of the above and so much more. Please contact out friendly team directly to find out more.

Migrating Your Accounts To Xero

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We meet many business owners who like what we stand for and want to work with us, but feel they can’t as we are Xero Accountants in Peterborough and they use Sage or another type of accounting software; but fear not, whatever system you currently use we can help you.

Our XERO specialist accountants can migrate your accounts from your current accounting system to Xero. This will make running your business easier and checking your cash flow quicker and simpler.

Why Migrate Your Accounts To Xero?

Here at Direct Peak we are Xero Accountants and feel that Xero accounting is a fabulous alternative to your old accounting software because it provides a real-time view of cash flow, wherever you are and at any time you choose.

You can use the mobile app to run your business on the go; reconciling, sending invoices, creating expense claims and more whether you’re eating your breakfast, on a train or enjoying a family holiday. You can also get paid faster with Xero because you can send invoices online and you’ll get an update when they’re opened by your customers. Xero will also import and categorise your latest bank transactions to so you know how much cash is in your bank account at all times.

How to Move To Xero Accounting?

Firstly, of course this is something our Xero Accounting Specialists in Peterborough are happy to help you with, or complete for you as we know that business owners are busy people.

However, if you do choose to move to Xero yourself you will need to register with Movemybooks for free then complete the simple step-by-step instructions shown and this will help extract your backup file. We will of course be on hand if there are any issues during this process.

Your Xero account is then born and you’ll either need to register for a Xero account or sign into your Xero account; a free trial or paid account is fine. Then click the ‘authorise’ button and connect to Xero. Check the data is being sent to the right place, follow the simple steps and then you’re all set up.