Preparing Self Assessment tax returns can involve a lot of repetitive work for accountants. From collecting client information and checking financial records to preparing returns, getting approvals and submitting them to HMRC, each stage can take valuable time.
For accounting practices managing many clients, tax season can become particularly demanding. Tax return software automation can help reduce this administrative workload by bringing different stages of the Self Assessment process into one connected digital workflow.
What Is Tax Return Automation?
Tax return automation means using accounting software to reduce the manual tasks involved in preparing and submitting tax returns. Instead of managing information through emails, spreadsheets and separate systems, accountants can use software to organise the process from information collection through to HMRC submission.
Depending on the software, automation can support:
- Digital collection of client information
- Retrieval of relevant HMRC information
- Importing bookkeeping and financial data
- Tax return preparation
- Calculation and validation checks
- Client review and approval
- Electronic signatures
- HMRC submission
- Tracking tasks and deadlines
Automation does not remove the need for an accountant. Professional review and judgement remain important before a tax return is submitted. Instead, software helps reduce repetitive administrative work so accountants can focus on reviewing information and supporting their clients.
Benefits of Automating Tax Returns
Reduce Manual Data Entry
Entering the same financial information multiple times can take considerable time and may increase the possibility of errors. Software can import or retrieve relevant information where supported, reducing duplicate data entry.
Collect Client Information Faster
Instead of sending multiple emails to clients, accountants can use digital questionnaires and information requests. This makes it easier to identify missing information at an early stage.
Improve Workflow Management
Tax return software can help accountants see which returns are waiting for information, review, approval or submission. Having this information in one place can make it easier to manage deadlines during busy periods.
Reduce Repetitive Work
Routine calculations, processing and validation checks can be supported by software. This allows accountants to spend more time on tasks that require professional judgement.
Simplify HMRC Submission
HMRC-recognised software can support electronic Self Assessment submissions. Once the return has been reviewed and approved, accountants can submit it electronically rather than relying on paper-based processes.
How to Automate Self Assessment Tax Returns
A connected workflow can make the automation process easier to manage.
1. Collect information digitally: Send clients questionnaires or online information requests.
2. Bring financial data together: Connect bookkeeping, payroll, accounts and relevant HMRC information where supported.
3. Prepare the return: Use the available information to complete the relevant sections of the Self Assessment return.
4. Validate the information: Use software checks to identify missing or inconsistent information before submission.
5. Get client approval: Send the completed return to the client digitally for review and approval.
6. Submit to HMRC: After the accountant's final review and client approval, submit the return electronically.
7. Track outstanding work: Monitor deadlines, missing information, approvals and submissions from one workflow.
What Should Accountants Look for in Tax Return Software?
When choosing software, accounting firms should consider features such as HMRC recognition, digital client questionnaires, HMRC data retrieval, bookkeeping and accounts integration, tax calculations, validation checks, eSignatures, direct submission and practice task management.
A connected platform can reduce the need to move information between multiple applications and help accounting teams manage their Self Assessment workload more efficiently.
Make Self Assessment Easier with Nomi
Nomi brings Self Assessment, bookkeeping, accounts, client communication, eSignatures and practice management into one connected platform. Accountants can manage the process from collecting client information through to HMRC submission while keeping control of the final review.
Start your free 30-day Nomi trial now- https://www.nomi.co.uk/free-trial/
and reduce the manual work involved in managing Self Assessment tax returns.