Paperless Records

Paperless Records

Running your own business, particularly in the early years, can be a rewarding,  if stressful experience. With lots of different areas to focus on to make a business successful, the matter of record keeping is often given a low priority. Failing to record expenses correctly could, however mean paying more tax than necessary or potentially leaving the business vulnerable in the case of an HMRC enquiry.

Advances in technology mean that it is becoming easier to keep track of expenses, and the days of retaining a box full of pieces of paper are numbered. HMRC are willing to accept PDF copies of receipts rather than paper copies and in fact are supporting this move through a new initiative, “Making Tax Digital”, which is likely to be implemented in 2018. This initiative will involve most businesses being required to report to HMRC on quarterly basis, providing details of turnover, expenses and supporting documentation.

It is envisaged that smartphone and other technology will be used to meet the HMRC requirements. Whilst the software that will enable this to happen has not yet been released, businesses can start planning towards this by making use of technology available currently.

This could involve cloud accounting software, photographing receipts, GPS mileage trackers and other technological advances to make record keeping easier and more accurate. Lentells have recently launched a new app, which brings this technology together in one place. This can be downloaded for free from the App Store.