What are the challenges of tax compliance for accountants?

Tax compliance has always been tricky for accountants, but these days it seems like the job is becoming even harder.

Whether you’re in a small firm or part of a bigger operation, trying to keep up with all of HMRC’s changes is no easy task.

With businesses growing, and regulations constantly changing, the workload can feel overwhelming.

Small updates, big problems

One of the biggest headaches accountants deal with today is the constant flow of new rules and updates.

These changes aren’t always big, headline-grabbing ones. Sometimes, they’re as small as a tweak in the process, but even the tiniest adjustment can cause big problems if it’s not managed correctly.

Take a recent example. HM Revenue & Customs (HMRC) updated its bank account details for certain tax payments, like the Plastic Packaging Tax and the Soft Drinks Industry Levy.

On the surface, this might not seem like a big deal. But for accountants who are managing multiple clients and a host of tax deadlines, this little change can cause chaos.

If a business accidentally uses the old bank details, that payment could be delayed, misplaced, or even result in penalties from HMRC.

Spinning the plates

These are the kinds of problems that don’t happen because accountants aren’t good at their job, they happen because they’re juggling too many things at once.

The workload piles up, and when you’re trying to stay on top of it all, it’s easy for small things like a bank detail change to slip through the cracks.

And that’s just one example. Think about all the other changes accountants must deal with: updates to tax thresholds, new levies, changes in VAT rates, the list goes on.

Every one of these adjustments needs to be understood and applied, usually without much notice. If you miss something or apply it inconsistently, you’re left dealing with compliance issues that no one saw coming.

Accuracy under pressure

Then there’s the pressure of making sure everything is 100 per cent accurate. With HMRC moving more towards digital reporting and real-time checks, even the smallest mistakes can be flagged and penalised.

It puts even more stress on accountants to get everything right the first time, especially when clients don’t always provide the information they need promptly. Yet, deadlines don’t change, and HMRC won’t wait.

Growing client expectations

Clients, of course, want everything done quickly and correctly. They expect their accountants to be fully up to speed on every new rule or regulation and to make those updates seamlessly.

But, when you’re already stretched thin, handling these demands adds another layer to an already tough job.

So where does that leave accountants? More often than not, they’re left reacting to these changes as they come, constantly putting out fires rather than getting ahead of the curve.

This is where technology can step in. Software that automates tax compliance tasks like monitoring for changes, double-checking accuracy, and keeping everything on track can make life a lot easier.

If you’re tired of scrambling to keep up with tax compliance changes, we’d love to show you how working paper software can help take some of the pressure off.

Contact us today to see how we can help you.