If you work in construction, then you won’t need us to tell you that there’s many administrative burdens you have to face every day! If you’re struggling to keep on top of it all, or want some advice on how to make things easier, fear not, FinTech is here to help…
This month’s Fintech Friday outlines some of the recurring issues for building & construction businesses.
I’m sure you’re well versed in this, but keeping tabs on deductions made and ensuring the reports are sent to HMRC can be time consuming. The good news is most cloud based software can help you to both manage and bring this all together beautifully, importing contractors details, verifying new ones, reporting to HMRC, and keeping track of what you owe from the moment you raise an invoice – it can be quick, easy and really help you keep on top of the numbers.
There are many solutions for this, both from third party apps, which can integrate with your core accounting software, or from the software itself. Some businesses aren’t getting the most value from their existing software. What’s right for you will entirely depend on the type of work you do, the complexity behind the transactions, and what information you need. The right cloud accounting software can ease the burden leaving you with paperless solutions and minimal effort.
A popular topic given the latest changes from HMRC…
The “domestic reverse charge for VAT”. In a nutshell the way you record, charge, report and pay VAT when dealing with CIS businesses changed on 1 March 2021 (save for a few exceptions). Technology can help you comply with the changes. A few tweaks to your setup and your software could automatically track and report any VAT falling under this new regime, freeing you up to carry on doing what you do best!
So long as you’re set up correctly and know what buttons to click, the software will do the hard work for you. (You should also check out our Xero tips for contact defaults, which links in nicely to this). Also, read more on our previous blog from our Proptech team here.
Remember though, this all came into effect from 1 March, meaning it will need to be in place for your next VAT return, so it’s important that you act quickly to make sure you don’t fall foul of the rules! (Find out more here on the domestic reverse charge for VAT)
How can we help?
There are many other areas that we can often help to streamline, implement or improve. If you are interested in finding out more about the technology options or need some training to help make the necessary changes, please contact our digital advisory team by emailing firstname.lastname@example.org or call 0161 905 1616.
Below we have flagged some of the options available – but this is by no means an exhaustive list.