Why finance software is needed for sports and leisure organisations
With the implementation of the Making Tax Digital (MTD) reforms just around the corner on the calendars of many finance leaders, finance software is experiencing a renewed focus. Under the new rules, companies that earn over £85,000 and therefore pay VAT will now be required to use software packages with API functions for efficient, mistake-free data sharing on tax returns – so new software is a must for many. However, there are other benefits to implementing a system like this – including collaboration, data sharing and more.
The current status
In the sports and leisure industry, preferred bookkeeping and other financial record-keeping practices are often determined in large part by the size and nature of the business. For a chain of leisure clubs, it’s highly likely that a computerised finance system of some sort will already be in place, but for a smaller business or a self-employed personal trainer or coach, it could be that pen and paper is the record-keeping method of choice.
Change is on the way
There are lots of different ways that financial records can be kept if you operate a sports and leisure business. However, with MTD on the way, you’ll need to make sure that you keep up to date with your compliance requirements. It’s not necessarily going to be just the smaller businesses that are affected, though they are likely to face the biggest learning curve.
If you currently keep your financial records by hand (perhaps by monitoring attendance and subscription fees through your trusty poolside clipboard), you’re going to need to invest in computerised software that has API integration functions. If you’re earning under the VAT threshold of £85,000 and are therefore not paying VAT, you won’t have to do this right away – but you will need to make sure that you do it in the coming years, as MTD will eventually get extended to income and corporation taxpayers.
If you’re a finance leader in a larger sports and leisure organisation, meanwhile, it may be the case that you too are not yet compliant with MTD’s obligations. Some spreadsheet software packages don’t have API integration functions, for example, while some older accounting software kits are also not ready. Speak to your accountant, and your IT team, if you’re not sure.
Additional benefits
Overhauling your financial record-keeping system doesn’t only have compliance benefits, though. It also makes sense from a wider commercial perspective. Advanced systems that have API functions are also often able to accurately capture employee expense claims, for example, which can cut costs on your VAT return. They also often present data in a harmonised and easy-access way – meaning that cross-departmental collaboration becomes easier and less time-intensive.
Finance software is back in the public eye given the upcoming implementation of MTD. However, as this article has shown, there are lots of reasons to shift to an advanced, modern finance system if you work in the sports and leisure industry.
