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Computer literacy eludes many smaller businesses

07 March 2017
Issue: 4590 / Categories: News

Many do not use software to manage their accounts.

Many small and medium-sized enterprises do not use software to manage their accounts and will have to adapt significantly to comply with HMRC’s Making Tax Digital plans.

A survey by the UK200Group a membership association of independent chartered accountancy and law firms showed that 65% of its members’ SME clients are not using accounting software while 27% use computers for their bookkeeping but will need to change their systems for MTD.

The survey found that 16% of business owners do nothing to record business transactions. Instead they present their accountant with a box of papers each year and leave them to complete the detail ready for their tax return.

Richard McNeilly chair of the UK200Group digitalisation taskforce and managing partner of Dains Accountants said the clients who have used the ‘shoebox method’ will have to invest in software learn how to keep records digitally...

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