Companies House Moving Entirely to Digital

Companies House moving entirely to Digital

By the end of 2018/19, Companies House will only be accepting filing through their online services. For those 20% of companies still filing using paper, the switch will need to be made, according to Mondaq, to, 'increase efficiency and cut costs.'

However, this will increase costs for companies.

Accounting Software Costs

In order to make the switch, companies and accountants will need to learn and utilise often-expensive accounting software. This added cost is sometimes difficult to justify but there are a few options.

The main accounting contenders in this arena are:

  • Sage
  • Xero
  • QuickBooks
  • Kashflow
  • Freeagent
  • Clear Books

Each makes filing accounts online quick and simple, yet there is a mastery needed to ensure companies keep all accounts up-to-date and accurate. Accounting software can also raise invoices, track payments, send late payment alerts, and provide other useful automation features including linking to your online bank and PayPal accounts.

The Benefits of Filing Online

Although there are the added software costs, there are many benefits to filing with Companies House online. These benefits can make the process of filing smoother and more secure.

For instance:

  • They process most documents within 24 hours
  • There are no postage costs
  • No use of covering letters
  • Automatic acceptance confirmations
  • Reduces risk of late filing penalties
  • Built-in checks and reporting for any errors or omissions

However, as 80% of companies already file online with Companies House, the change will only affect the minority of businesses.

New company?

So if you are about to form a new company, you will need to ensure you use accounting software or an accounting firm that already uses this online method of filing to ensure you stay ahead of the curve.