THE EVOLVING POSSIBILITIES OF VIRTUAL FINANCE

Paul Crichton

THE EVOLVING POSSIBILITIES OF VIRTUAL FINANCE


2020 saw a year of change and a dramatic shift to technology. We relied on our screens to remain informed, entertained and connected. But, what if we could do more than that?

According to the Institute of Business Value ‘business leaders’ needs for speed and flexibility have been amplified dramatically’. Traditional modes of working are being swept away under the pressures of evolving customer expectations and an unprecedented pace of change.

A global survey conducted by McKinsey in July 2020, found that 67% of companies had accelerated their adoption of automation and AI during the pandemic. In doing so, they have cut costs and increased the productivity of routine, administrative tasks.

With accountancy being the backbone of business, many are seeking alternative methods to traditional outsourcing. Aligned with the shift to digital innovations, Virtual Finance Function (VFF) is a flexible solution which meets the need for real-time, accurate and meaningful financial information. By swapping outdated financial methods such as receipt-hoarding and paper expense claims for technology-driven solutions, you can save time, improve processes and reduce your workload. VFF is a transformational approach that can take your financial information out of the office and streamline the process under one (virtual) roof.

At MMG, we adopt time-consuming tasks such as audit and accounting, taxation, accounting advisory, business support, wealth management and online accounting. As experts in Xero, QuickBooks and FreeAgent, we will take the time to understand your needs and build a tailored system. Our experienced team will handpick elements of support that will help your business to thrive, finding solutions individual to your circumstances. From freelancers to large scale organisations, our MMG 123 approach to accounting ensures that you get the support which is right for you.

Our experts will not only support, but also advise your business on streamline solutions. For example, the bracing sweep of digitalisation promises to deliver a long-awaited answer to tax functions.

VAT registered businesses making taxable supplies above the £85,000 registration threshold have been involved with Making Tax Digital (MTD)since April 2019. The next roll-out will be the introduction of MTD for income tax which is scheduled to start in April 2024.

The obligation to keep records in a digital format and report information quarterly will apply to unincorporated businesses and property landlords with a gross income of more than £10,000 a year. Companies operating MTD for VAT will already have MTD compliant accounting software. Still, the extension of MTD to income tax will mean a significant change for property rental businesses outside of the current rules.

There are several MTD compliant accounting software packages that you might wish to consider, and we can, of course, advise you on the one that is most appropriate for your business.

Please get in touch if you want to be a part of the ever-evolving possibilities of finance technology.