The deadline for submitting quarterly VAT returns under the new Making Tax Digital (MTD) process is 7th August, giving you just one week for getting your eCommerce clients MTD ready. Join us as we explain how to do this as quickly and efficiently as possible.
You’ll be no stranger to MTD – the government initiative transforming the way businesses collect and report on tax. But, your eCommerce clients might be; preferring to bury their heads in orders rather than learning about MTD for eCommerce.
But, with the first quarterly VAT deadline fast approaching, multi and single-channel eCommerce businesses are suddenly panicking and coming to you for advice. So, how do you get these eCommerce clients MTD-ready in the short space of time available?
Getting your eCommerce client MTD-ready in seven steps
1. Sign your client up to MTD
Sign your eCommerce client up to MTD here at least 72 hours before the VAT deadline (seven working days if paying by direct debit), while you authorise them on your agent services account and forward them the link to click.
2. Understand their business
Understand what type of eCommerce business you’re dealing with, specifically:
⦁ How many sales channel(s) they sell on;
⦁ How many orders they process;
⦁ Their current method of accounting; and
⦁ Any accounting and order management software they use.
Use this as an opportunity to put a stop to practices against MTD (i.e. copying and pasting).
3. Sign them up to MTD-enabled software
For eCommerce businesses, we strongly recommend Xero. It’s simple for both clients and accountants to use, while also containing advanced functionality useful for growing eCommerce businesses.
4. Import sales orders into Xero
To create an MTD-approved digital link between your client’s sales channel and Xero, use Expandly to download sales orders and import them into Xero, while automatically:
⦁ Directing orders into the correct bank and sales accounts in Xero depending on sales channel and payment method;
⦁ Assigning orders to the correct tracking category in Xero, allowing you to filter orders by sub-categories;
⦁ Batching orders to avoid Xero’s soft transaction limit; and
⦁ Pushing orders into the approved or paid sections in Xero.
Not only is this a crucial time-saver, but your client can use Expandly to help them in the future too – adding extra value to your services.
5. Submit their VAT return
This is where your expertise comes in.
6. Change their way of working
Once the panic is over, and you’ve beaten the deadline, it’s time to talk to your client about a better way of handling their finances in the future. This could include:
⦁ Automatically sending sales orders to Xero regularly using Expandly;
⦁ Using Xero’s tracking categories to make bulk tax rate changes; and
⦁ Meeting with you regularly to avoid any further last-minute panics.
With thousands of sales orders, numerous tax rates and multiple systems, eCommerce clients can be time-intensive – especially at the last minute. Expandly makes the job easier and quicker, so you can spend more time winning eCommerce clients and less time figuring out how to get their sales orders into Xero.
Getting your eCommerce client MTD ready – see for yourself
Expandly’s multi-channel management Xero eCommerce integration makes importing sales orders into Xero quick, easy and automatic. Even better, our exclusive accounting partnerships gives you access to a client portal and preferential rates.