MTDfIT Bring in the Bookkeepers!
Maximizing Efficiency for Accountants
MTDfIT (Making Tax Digital for Income Tax) or a more accurate way to describe it might be "Mandatory Digital Bookkeeping." Is the governments new strategy requiring businesses to go digital with their bookkeeping. Understandably, accountants are raising concerns about the extra workload piling onto their already stretched schedules. There is a solution: bring in the bookkeepers!
I believe that bookkeepers will play a crucial role in the success of MTD - lightening the load for accountants and giving clients the support they need.
So, Accountants instead of pushing yourself to the limit, it’s time to call for reinforcements: Bookkeepers are the game-changer accountants need to tackle the extra work efficiently, effectively, and profitably.
Why work with a bookkeeper?
Think of a bookkeeper as your trusted sous-chef in a bustling kitchen. As the accountant, you’re the head chef - crafting the strategy, setting the vision, and presenting the final masterpiece. Meanwhile, your bookkeeper ensures everything is prepped, every detail is spot on, and nothing gets overlooked.
A qualified, professional ICB bookkeeper can:
Handle quarterly MTDfIT submissions seamlessly
Collect and organise client documents so you don’t have to
Guide paper-based clients in switching to MTD-compatible software
Keep daily transactions accurate and up to date, so you stay focused on the big picture
Provide a complete and accurate set of books at year-end, including any required adjustments
Free up your time for higher-value advisory work or more clients
Help you boost your profitability
By teaming up with a bookkeeper, you’re not just keeping up with MTD - you’re making it work for you.
Multiple Agents in MTD: A Game Changer for Collaboration
HMRC has introduced multiple-agent functionality for Making Tax Digital for Income Tax, allowing more than one agent to act on behalf of a client. This means that both bookkeepers and accountants can seamlessly share responsibilities.
This functionality streamlines collaboration, reducing bottlenecks and ensuring clients receive a timely, efficient service.
Outsource or co-firm?
You can choose to outsource elements of client work to an independent bookkeeper or bookkeeping practice through a subcontracting agreement. If you want to maintain your current service offering but recognise how regular bookkeeping could benefit your clients beyond their MTD obligations, you might consider co-firming -a collaborative model where accountants and bookkeepers work as independent but integrated firms to provide seamless client support.
How to find the right bookkeeper (Hint: Look for an ICB Certified Bookkeeper)
ICB members such as me are qualified, tech-savvy professionals who are ready to integrate into your practice.
Things to consider when looking for a bookkeeper:
Qualifications: What formal qualifications do they have? An ICB Certified Bookkeeper has achieved the highest level of bookkeeping qualification, demonstrating expertise, competence, and up-to-date knowledge of the latest regulations.
Experience: Do they have client-facing experience, and do they understand your industry sector? A skilled bookkeeper doesn’t just handle transactions - they understand industry-specific challenges, HMRC requirements, and MTD workflows.
Technology Skills: Can they work with your accounting software and digital workflows? Better yet, can they provide software support to your clients? The best bookkeepers don’t just use software - they optimise it. Whether it’s setting up cloud-based systems, automating processes, or training clients, a tech-savvy bookkeeper ensures everything runs efficiently.
People Skills: Are they good at building relationships and keeping clients engaged? A great bookkeeper isn’t just skilled with numbers—they’re proactive communicators who know how to get the right information at the right time. They build trust, keep clients accountable, and ensure financial records stay up to date.
The bottom line
By partnering with a bookkeeper, you can turn MTD’s extra workload into an opportunity. Click the ‘contact’ button on my website now and let’s connect.