Automation is transforming the bookkeeping industry by tackling challenges such as document management, manual data entry, and compliance with Making Tax Digital (MTD).
In this latest blog from the Plusteck team, you'll learn more about how automating repetitive tasks like VAT submissions and invoicing can save time and streamline bookkeeping work.
1. Challenge: Managing Document Chaos from Multiple Clients
You’ve likely experienced it: documents pouring in from all directions—emails, mobile scans, paper copies. Keeping everything organised can feel like a juggling act, especially when clients send invoices, receipts, purchase orders, or bank statements at the last minute. This is especially taxing when working with self-employed individuals, sole traders, or small businesses, who may have varied methods of document submission.
Automation Solution: By automating document collection, you can centralise all your clients’ records in one place, whether they come via email, phone, or scanner. With documents automatically filed and categorised according to VAT, expenses, or income categories, you can spend less time chasing and more time focusing on the bigger picture, such as offering advisory services or ensuring timely submissions for VAT returns.
2. Challenge: Staying Compliant with MTD
Making Tax Digital (MTD) has added new layers of compliance, especially as more bookkeepers manage the transition from traditional record-keeping to digital. Ensuring every VAT transaction, such as those detailed in sales invoices or purchase receipts, is correctly recorded in a digital format is crucial. Missing a detail could mean errors in your quarterly VAT submissions—or worse, penalties from HMRC.
Automation Solution: Automation ensures that all VAT-related transactions are captured, organised, and stored digitally, which is a key requirement under MTD for VAT. This reduces the manual workload of inputting and organising receipts and invoices for each VAT return. Automation takes the pressure off, so when it’s time to file, everything is ready for submission—avoiding the stress of scrambling to meet deadlines and preventing errors that can lead to penalties. More than 80% of errors in tax returns are caused by manual data entry mistakes, so automation helps reduce these issues.
3. Challenge: Manual Entry Mistakes Risking Your Clients’ HMRC Filings
Manual data entry is not only time-consuming but prone to mistakes. Whether it’s entering expenses from supplier invoices or managing the records for a limited company’s bank statements, one small error can lead to miscalculations that ripple throughout financial reports. This can become especially problematic during year-end accounts preparation or when reconciling with HMRC.
Automation Solution: Automating data extraction from invoices, receipts, and bank statements saves time and reduces human error. By capturing key financial details like VAT and expenses, automation ensures accuracy while speeding up tasks. This is particularly valuable for annual filings or VAT returns, helping to reduce the risk of non-compliance with HMRC regulations and saving up to 30% of time during peak periods.
4. Challenge: Juggling Multiple Accounting Platforms
Many UK bookkeepers work across platforms like QuickBooks, Xero, or Sage, depending on client preferences. Switching between systems can disrupt workflows and increase the risk of missing key details, especially when clients provide different documents like expense receipts or invoices.
Automation Solution: Automation integrates with all major platforms, providing a unified workflow. Whether you’re dealing with a self-assessment client or preparing quarterly accounts for a VAT-registered business, automation streamlines the process, reducing errors and saving time.
Automation doesn’t have to be complicated—it’s designed to make your life easier. By reducing manual tasks and ensuring MTD compliance, automation helps you regain valuable time. Whether it’s managing sales invoices, bank statements, or staying on top of VAT returns, automation can streamline your entire process. The Federation of Small Businesses (FSB) notes that automation can save businesses between £500 and £1,500 annually in administrative costs. Ready to transform your bookkeeping workflow? Plustek’s automation solution is here to help you meet MTD requirements effortlessly. Connect with us today (https://plustek.com) to start automating your practice.
Plustek will be exhibiting at the Bookkeepers Summit book here to meet the team: https://www.bookkeeperssummit.com/tickets
