75% of accountants are aware of Making Tax Digital, research shows

Research from accounting software provider Intuit QuickBooks has shown that 75% of accountants are aware of Making Tax Digital (MTD), a legislation that will see businesses being required to keep digital records and provide quarterly updates instead of filing annual tax returns.

The study explored accountants’ views on MTD and found that more than 35% believe that the introduction of the legislation will provide an opportunity to drive positive change within the accounting industry.

Unclear

The research showed that while the majority of accountants are aware of MTD, there is still a lack of understanding about the implications of the legislation, with 30% of respondents saying that they are unclear about how it will affect their practice.

Accountants revealed their top concerns over MTD, with changing client behaviour being cited as a main concern by 34% of respondents, followed by teaching staff about the implications of the legislation at 24%.

Despite these concerns, more than 35% of accountants believe that MTD will create opportunities, with 24% saying that it will enable faster and more efficient workstreams on the cloud and 22% believing that it will help them to build a more digitally forward practice.

Insights

Intuit QuickBooks’ Head of Business Development, Accountants Nick Williams commented: “Accounting has historically been an exercise of looking in the rearview mirror, but cloud technology empowers accountants with real-time insights that can be used to transform their role from bookkeeper to financial advisor.”

He added: “Introducing new client behaviour, educating staff and taking a proactive approach to forthcoming legislation isn’t always easy, but the time to get ahead is now.”