# Accountants can’t afford to ignore Making Tax Digital Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2016-11-01 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: IRIS warns UK accountants unprepared for Making Tax Digital chaos Meta Description: Get ready for Making Tax Digital or risk chaos, says IRIS Software Group. UK accountants urged to embrace digital change to avoid potential chaos and ensure URL: https://financedigest.com/accountants-cant-afford-to-ignore-making-tax-digitalhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/hand-pushing-a-touch-screen-1736844400798-compressed.jpg) UK accountants are not ready to go digital, warns IRIS Software Group, with a lack of preparation for Making Tax Digital risking chaos for accountants and businesses across the UK. A study, conducted by IRIS, found that even though 66 per cent of accountants agreed with the Government’s digital strategy, 67 per cent had not read the Making Tax Digital documentation. A further 68 per cent disagreed with the timescales recommended by HMRC. With the initial ‘go-live’ date of April 2018 approaching, time is running out for accountants to embrace digital change and begin supporting businesses on the journey towards Making [Tax](https://www.financedigest.com/self-employed-taxpayers-and-making-tax-digital.html "Self-employed taxpayers and Making Tax Digital") Digital. Kevin Whitehouse, founder of accountancy firm Prime Entry, believes accountants need to change their outlook on Making Tax [Digital to ensure they’re offering the best possible service](https://www.financedigest.com/major-myths-and-questions-holding-banking-and-financial-services-back-from-full-digital-id-adoption.html "Major myths and questions holding banking and financial services back from full digital ID adoption") to their clients. He says, “Making Tax Digital has the potential to be absolute chaos, but it’s also the biggest opportunity to hit the [accountancy industry](https://www.financedigest.com/flooded-battery-to-remain-top-choice-across-industries-accounting-for-49-0-of-lead-acid-battery-sales-in-2021-future-market-insights.html "Flooded Battery to Remain Top Choice across Industries, Accounting for 49.0% of Lead Acid Battery Sales in 2021: Future Market Insights") in years. For those firms already embracing the [technology available](https://www.financedigest.com/advertys-multi-patented-and-industry-leading-in-game-viewability-technology-brainimpression-now-available-within-oracle-moat.html "Adverty’s Multi-patented and Industry-leading In-game Viewability Technology BrainImpression™ Now Available Within Oracle Moat"), this won’t be the step change many fear HMRC’s mandate will cause. They will already be working [closely with their clients](https://www.financedigest.com/impact-com-closes-2021-with-new-google-pay-integration-150m-in-funding-and-51-increase-in-clients-yoy.html "impact.com closes 2021 with new Google Pay integration, 0M in funding and 51% increase in clients YoY") digitally and the change will simply equate to transitioning between filing tax documentation annually, to quarterly. “Accountants fearing the timescales will still be using basic spreadsheets and accepting bags of receipts from their clients. This can’t be accepted any more – this type of dark age accountancy is exactly why Making [Tax Digital is such an important change in the industry](https://www.financedigest.com/rd-tax-important-exemptions-and-upcoming-changes-for-the-it-software-industry.html "R&D Tax: Important Exemptions and Upcoming Changes for the IT & Software Industry"). “It’s vital accountants are educating their clients in how to bookkeep and manage their [cash flow](https://www.financedigest.com/xerox-shares-slide-as-annual-revenue-cash-flow-forecasts-take-a-hit.html "Xerox shares slide as annual revenue, cash flow forecasts take a hit") efficiently in advance of the changes. Accountants can then truly add [value to companies throughout the UK by becoming high-level business](https://www.financedigest.com/three-ways-data-unlocks-business-value-for-financial-organisations.html "Three Ways Data Unlocks Business Value for Financial Organisations ") advisors, rather than glorified bookkeepers.” Sion Lewis, CEO Accountancy Division at IRIS Software, says, “As we move closer to Making Tax Digital, it’s crucial accountants demonstrate additional [value to their customers](https://www.financedigest.com/the-value-of-customer-centricity-to-c-suite-financial-strategy.html "The value of customer-centricity to C-Suite financial strategy"). This isn’t possible if the industry fails to embrace [innovative technology](https://www.financedigest.com/marine-mining-market-expand-substantially-owing-to-technological-innovations-during-2018-2026.html "Marine Mining Market Expand Substantially Owing to Technological Innovations During 2018-2026") tools which will automate large portions of Making Tax Digital. There is the potential for more [businesses](https://www.financedigest.com/business-finance-the-fintech-evolution.html "Business finance: the fintech evolution") to take financial management in-house as they discover the technology available to them. This is why it’s never been more important for accountants to engage with the mandate, bring themselves closer to their clients and ensure they’re [positioned](https://www.financedigest.com/playground-xyz-appoints-new-team-members-as-it-solidifies-its-position-as-a-leader-in-the-attention-space.html "Playground xyz appoints new team members as it solidifies its position as a leader in the attention space") as an indispensable element of the team.” --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---