MTD and VT+

ClaireS17

I've heard that VT+ aren't going to develop their software for MTD anymore which I think may cause a problem for me as this is the software I use for my clients when doing their bookkeeping.

I'm just wondering if anyone has any recommendations of a replacement bookkeeping software I could use that is going to ?

I do bookkeeping for most of my clients and they would not want to pay extra fees for individual subscriptions for bookkeeping - which was why VT+ was ideal as it was just a flat fee for me once a year and I could use it for numerous clients bookkeeping. I'm now quite worried that I'll end up having to pay for individual subscriptions for each client and that will cost me a fortune or, if I passed the fee on to the client, I may potentially lose a lot of them.

I use BTC for my CT600 and partnership return filing so ideally I'd like something that I can integrate with this existing software - any ideas?

ClaireS17

Phew what a relief! I just spoke to Xero about their software and it was going to cost me nearly 10 times what I pay for VT+! At least there is also a bit f time before it goes live too!

Thanks for the help

SILS

Mickdundee said:

Found it!
This guy will be developing something once all the parameters are released.
https://www.neilsonjamestech.co.uk/index.php

VT+ already features VAT Returns and Bank Reconciliations. Which add-on (not developed by VT)? Unless there are plans to go cloud to support MTD.

MarieNoelle

I would wait until HMRC publish a list of authorised software providers.
Re VT it looks like you could use it as before and transfer your data digitally (sic) to a compatible software for filing.

reader

Mickdundee said:

> @SILS said:

> Found it!

> This guy will be developing something once all the parameters are released.

> https://www.neilsonjamestech.co.uk/index.php

>

>

> VT+ already features VAT Returns and Bank Reconciliations. Which add-on (not developed by VT)? Unless there are plans to go cloud to support MTD.



VT allows VAT submission directly from VT?



But anyway, I don’t care about VAT returns or bank recs. my post was about MTD; of which he will be developing another add on for.

I haven't used VT recently however it didn't allow VAT submission when I did use it.

burg

We have looked at our client base and made the decision to get out of the data processing game.
We have identified around 100 clients who will be more price sensitive and we will not be able to serve. We are currently in the process of either selling those clients or creating a new business which is effectively a MTD data processing centre. The overheads will be low with less technical staff who can process high volumes of transactions.

Our core business has changed massively though in the last 6 months. Our target client has changed and the level of service we offer too. I was nervous of this at first but it has generated almost £30k of new annual fees since the start of January. I'm confident this is the way forward and leaves me less nervous about offloading 1/3 of our clients.

Not everyone will take this approach. Some will move towards advisory services, others will aim for the small data processing approach. Whichever way I suggest sorting it now as if you wait and do nothing you may find yourself playing catch up and losing clients very quickly.

mergen

@Mickdundee did you hurt someones feelings again?

reader

burg said:

We have looked at our client base and made the decision to get out of the data processing game.
We have identified around 100 clients who will be more price sensitive and we will not be able to serve. We are currently in the process of either selling those clients or creating a new business which is effectively a MTD data processing centre. The overheads will be low with less technical staff who can process high volumes of transactions.

Our core business has changed massively though in the last 6 months. Our target client has changed and the level of service we offer too. I was nervous of this at first but it has generated almost £30k of new annual fees since the start of January. I'm confident this is the way forward and leaves me less nervous about offloading 1/3 of our clients.

Not everyone will take this approach. Some will move towards advisory services, others will aim for the small data processing approach. Whichever way I suggest sorting it now as if you wait and do nothing you may find yourself playing catch up and losing clients very quickly.

Probably worth keeping these 100 clients but using things like receipt bank/off shoring to keep overheads low. Although these clients do not generate much in terms of fees they could potentially refer someone useful. Some have also suggested bookkeeping clients are the future as accountancy gets automated.

Hopefully your new target clients aren't contractors. These type of clients will probably fall away come April 2019 if/when the off payroll rules move into the private sector.

Specialisation is greater but sometimes could leave you a little exposed should tax rules change. A lot of these childcare voucher providers are going to struggle when the childcare voucher scheme gets abolished for new entrants.

I think advisory is overrated. I don't think most AAT accountants will be able to make a living from it.

burg

It's each to their own for ideal clients. Definitely not contractors as I agree their times are numbered. We are in the advisory aim now but specialising in established limited companies and in particular creatives and technology based clients. I really don't think advisory is over-rated. Businesses need more guidance on how they are performing and as accountants we are best placed to help them (AAT accountants or otherwise). Our advisory clients already make up £30k of GRF and we have only been offering the service for a few months. We will still offer compliance but at a much higher end than for those other clients. They will either be sold or offered a very basic service. They will be right for someone but that isn't us anymore.

reader

burg said:

It's each to their own for ideal clients. Definitely not contractors as I agree their times are numbered. We are in the advisory aim now but specialising in established limited companies and in particular creatives and technology based clients. I really don't think advisory is over-rated. Businesses need more guidance on how they are performing and as accountants we are best placed to help them (AAT accountants or otherwise). Our advisory clients already make up £30k of GRF and we have only been offering the service for a few months. We will still offer compliance but at a much higher end than for those other clients. They will either be sold or offered a very basic service. They will be right for someone but that isn't us anymore.

The reason why I think advisory is over-rated is because if it was important most AAT accountants would be offering it now, rather than it being talked about as something new that we need to start doing or "moving towards".

If you don't mind me asking, regarding advisory, what will you be doing and charging clients for?

R&D tax credit applications? Is this advisory or just normal tax work?

SEIS applications? Is this advisory or just normal tax work?

Helping clients integrate more apps into their Xero account? Is this advisory or just normal accounting?

Budgeting and forecasting? How much do you think clients will be willing to pay for this?

Anything else you are planning on doing?

burg

Most of the above are included within our normal packages.
The reason I believe we don’t have so many offering advisory is because it has been too easy to just do simple compliance. Nothing wrong with this as we have built a practice consisting of 300 clients this way.
My view though is that with MTD many of those clients won’t cope with increased fees to achieve the level of service required to be compliant. Advisory services are therefore the way forward for us.
We have two levels of compliance. Basic year end type service with the client doing their own bookkeeping on Xero. Then a step up to us doing the bank rec and client doing PL & SL (each can be upgraded to us doing it though).

We then have two advisory services which build into our bookkeeping service. These are management reports with a visual basis with help to identify on monitor 5 KPI’s with regular meetings to discuss.
Our offering beyond that is using our experience to help them set future goals, explore methods of how to achieve them & then holding them to account.

I know this isn’t for everyone & we are choosing to be different but then that is why I think we will achieve the results we are setting out to do so. Our aim over the next 12-18 months is to achieve the same level of income but from at least 50 less clients.

reader

burg said:

Most of the above are included within our normal packages.

The reason I believe we don’t have so many offering advisory is because it has been too easy to just do simple compliance. Nothing wrong with this as we have built a practice consisting of 300 clients this way.

My view though is that with MTD many of those clients won’t cope with increased fees to achieve the level of service required to be compliant. Advisory services are therefore the way forward for us.

We have two levels of compliance. Basic year end type service with the client doing their own bookkeeping on Xero. Then a step up to us doing the bank rec and client doing PL & SL (each can be upgraded to us doing it though).



We then have two advisory services which build into our bookkeeping service. These are management reports with a visual basis with help to identify on monitor 5 KPI’s with regular meetings to discuss.

Our offering beyond that is using our experience to help them set future goals, explore methods of how to achieve them & then holding them to account.



I know this isn’t for everyone & we are choosing to be different but then that is why I think we will achieve the results we are setting out to do so. Our aim over the next 12-18 months is to achieve the same level of income but from at least 50 less clients.

Wow! Your business model seems very future proof and robust. Although it does require highly skilled people (i.e. you) to deliver such a service.

What is also good is that with that type of service offering you should also get lots of referrals too.

It would be nice if the AAT magazine/CPD focussed more on this type of thing rather than scare people about automation, machine learning, artificial intelligence and robots.

The AAT should give you your own column! You should be AAT's future proofing guru or advisory consultant (in the same way that Michael Steed is the AAT's tax expert).

I think the AAT should be providing much more CPD on apps (Practice Ignition, Receipt Bank, Fathom, Futurli, Expensify, Work Flow Max, Harvest, Crunchbaords, etc), KPI's, goal setting (including personal goals such as helping clients afford their dream holiday, etc), forecasting, etc as this is the future.

Your responses have been extremely helpful. Thanks.

burg

It may well be future proof now but it wasn’t 6 months ago. We were the same as everyone else just doing compliance. In my view that can’t last & he prices will just get driven down further and further. I’m not interested in doing accounts for rock bottom prices.

Not sure I deserve a column as I’ve got to be able to continually come up with content and writing isn’t my forte.

I’m not sure AAT can do much more as although I’m confident on the route I’ve taken there are many other options which won’t necessarily be wrong routes.

Overall I’m glad my comments are helpful and that somebody else can learn from them and can hopefully see there are other options that just helping people meet deadlines.

Not blowing my own trumpet but even our new basic compliance package is not about meeting deadlines. We start with the earliest opportunity possible to ensure clients have as much notice of tax and the ability to change their business too. We also run regular workshops that they are invited too which are helpful in getting the most from us for helping their business.