A Xero world first!
“Receiving Xero Migration Certification has not only been a personal achievement, but also demonstrates that Elsby & Co has knowledge of the very latest technology and is taking active steps to support our clients ahead of Making Tax Digital.”
Liz Brewster, Client Project Manager at Elsby & Co, has become the first person in the world to complete Xero Migration Certification, a new standard recognising her abilities to help businesses reduce their worries over record keeping and use accounting information to drive decision-making.
Xero, the global specialists in online accounting were so impressed with Liz’s determination to become their first successful awardee that Julian Buck, Xero Director of UK Services, travelled to Elsby’s Rushden offices to surprise Liz with her Award.
Julian commented: “We’re really excited about this migration certification, which is new here in the UK. It’s aimed at our partners who want to migrate their customer base over to Xero, and it fully prepares accountants to plan, prioritise and move their clients’ data.”
Of course all of this excitement begs the question, why should businesses be getting so fired up about shifting their tax affairs online?
The answer, simply put, is that HMRC’s ‘Making Tax Digital’ (MTD) initiative means that by April 2019, all businesses and landlords with a turnover above the VAT threshold (currently £85,000) must be registered for quarterly reporting using appropriate accounting software.
“According to AccountingWeb cloud accounting adoption has increased from 4% in 2006, to 84% in 2017, and 1.5 trillion transactions go through Xero worldwide every year.”
After this date there will be a phased timetable for all other businesses to comply in the same manner, beginning in 2020.
The motivation for this activity is aimed at making tax reporting and billing much more accurate and straightforward by allowing businesses to update and access their financial information and submissions on a ‘live’ basis.
Commenting on her Xero Award and the journey ahead for Elsby’s clients, as well as the rest of the UK’s business community, Liz picks up the story:
“I’ve been working with Xero since 2010 and I’m thrilled to have received this Award and the recognition it brings,” she explains. “I found the migration certification very straightforward and it provides a real boost to everything I’ve been doing to prepare Elsby & Co for Making Tax Digital.
“We are firmly behind the process of migrating our customers to comply with these requirements and a quick scan of UK-wide figures shows that MTD is an issue which is rapidly gaining momentum.
“Some 20% of VAT returns are already being filed using Xero and there are now over 250,000 organisations using the system in the UK, plus a further million companies worldwide.
“Receiving Xero Migration Certification has not only been a personal achievement, but also demonstrates that Elsby & Co has knowledge of the very latest technology and is taking active steps to support our clients’ ahead of MTD.
“The migration process can be complicated, and transferring records and figures from one paper or electronic accounting system to another has the potential for mistakes if not approached correctly.
“However, if action is taken early and professionally, once a business is set up with Xero or similar accounting software, then the benefits are potentially huge.
“These include: no double entry of sales invoices; one click to record a sales receipt or other transaction to reconcile against the bank; repetition of invoices and bills, and automatic preparation of VAT returns and submission to HMRC. You can also photograph receipts on a smartphone for them to be automatically uploaded to your digital account.
“For any company of whatever size, keeping your numbers up-to-date easily means you can see at a glance how your business is doing and make decisions based on the information received. You can also easily prepare management accounts on a monthly or quarterly basis, rather than just at year end for the satisfaction of the tax man.”
According to AccountingWeb cloud accounting adoption has increased from 4% in 2006, to 84% in 2017, and 1.5 trillion transactions go through Xero worldwide every year.
Clare Elsby, Business Development Director at Elsby & Co, adds: “In order to become a cloud accounting business leader we needed someone to be able to project manage the best approach for our clients online and that’s where Liz came in.
“The reward for bringing someone like Liz on board is that we have been able to make our own systems much more efficient. Xero education has been great for us. We’re better informed when working with our clients and it means we can offer a vastly improved service.
“Looking to the future we are advising all of our existing and prospective clients to contact us at the earliest opportunity to ensure that they are fully prepared for Making Tax Digital.”
For further details call Elsby & Co on 01604 678470 to register for our free Cloud Accounting workshops in 2018, or visit ‘events & workshops’ at www.elsbyandco.co.uk