Spotting potential MTD bookkeepers in your firm

Making Tax Digital (MTD) for Income Tax will likely create significant changes in how accountancy firms operate. This move to quarterly income and expense reporting is expected to increase client demand for bookkeeping services. For accountancy firms, this presents both a challenge and an opportunity. Some firms will need to upskill and retrain their employees to meet this demand.

Potential MTD Bookkeeper

Identifying potential bookkeepers within your practice is a strategic way to address this need. Retraining existing employees can save time, reduce recruitment costs, and retain valuable team members. But how do you spot a potential MTD bookkeeper within your current workforce? Let’s explore the key traits and skills to look for, as well as the additional expertise needed to expand your business support solutions.

Essential skills for a potential MTD bookkeeper

Bookkeeping is fundamental to accounting and financial management, requiring specific skills and attributes to excel. When identifying potential bookkeepers in your firm, look for employees who exhibit the following qualities:

  • Methodical approach to work
  • Attention to detail
  • Numeracy and analytical thinking
  • Tech-savviness
  • Communication skills

Our blog, Making the Most of Transferable Bookkeeping Skills, provides further details about the skills needed to be a bookkeeper.

Expanding skills for business support solutions

In addition to the above core bookkeeping competencies, accountancy firms should consider employees with skills and experience that enable your firm to offer broader business support solutions, not just to assist with the increased workload the MTD for Income Tax is likely to generate. Key areas to assess include:

Knowledge of payroll systems

Payroll is a natural extension of bookkeeping. Employees with experience in payroll systems, familiarity with tax codes, and an understanding of compliance requirements can add immediate value to your team’s service offering.

VAT knowledge

VAT filing is another critical area for many business clients, particularly since the introduction of MTD for VAT. Employees who know how to comply with MTD for VAT, or those willing to learn, can strengthen your business support services.

Problem solving skills

Employees who can analyse and solve problems are invaluable when offering advisory services. These individuals can assist clients in improving cash flow, managing debt, and boosting financial performance.

Client management and advisory experience

If your firm takes a holistic approach to provide business support, look for employees who are good communicators, can build strong client relationships, and are confident in their ability to offer strategic advice. This requires technical expertise and the ability to understand and align with your client’s business goals.

The role of MTD in upskilling opportunities

The forthcoming introduction of MTD for Income Tax strengthens the need for skilled bookkeepers. Under the new rules, starting in April 2026, self-employed people and landlords with an annual income over £50,000 will need to file quarterly income and expense returns with HMRC. The rules will affect those earning £30,000 or more from April 2027, with people earning over £20,000 a year expected to join the scheme at some point during the current parliament. The new MTD for Income Tax scheme will:

  • Increase demand for bookkeeping services: Clients who previously managed their records annually will require more frequent and accurate bookkeeping.
  • Create opportunities for upskilling: Accountancy firms can retrain existing employees to take on these roles, building a more versatile and capable team.
  • Promote technology adoption: Employees must become proficient in cloud-based accounting tools and MTD-compliant software, making tech-savviness a crucial skill.

To prepare, firms should:

  • Assess the skills of existing employees.
  • Identify those with the potential for retraining in bookkeeping and related services.
  • Provide training programmes and courses to build technical and software-specific skills.
  • Encourage their employees to study for professional qualifications, such as the Association of Accounting Technicians (AAT), to enhance their credibility and competence.

Steps to spot and develop potential MTD bookkeepers

Step 1: Conduct a skills audit

Review your employees’ current roles, responsibilities, and performance. Look for individuals who demonstrate the key skills outlined above.

Step 2: Assess learning and adaptability

Bookkeeping involves continuous learning, especially as MTD regulations and bookkeeping technology evolve. You should identify employees who are eager to learn and adapt.

Step 3: Provide training opportunities

Offer internal training sessions, external courses, or professional qualifications to help employees develop bookkeeping expertise. Accountancy Learning offers the following training options:

Step 4: Assign shadowing opportunities

Pair potential bookkeepers with experienced colleagues to gain hands-on experience. This also allows you to evaluate their aptitude for the role.

Step 5: Recognise and reward progress

Acknowledge employees’ efforts and milestones as they transition into their new bookkeeping and business support roles. This reinforces their value to your practice and boosts morale.

Conclusion

The changes being experienced by the accounting sector, driven by initiatives like MTD for Income Tax, highlight the importance of a competent and adaptable workforce. By identifying and retraining potential bookkeepers within your practice, you can future-proof your firm, enhance client services, and remain competitive.

Spotting the right talent requires a keen eye for specific skills and a commitment to employee development. With the right approach, you’ll not only meet the increasing demand for MTD bookkeeping but also identify new opportunities for growing your practice and enhancing client relationships.

Which bookkeeping course is best for your employees?

To discuss how you can spot a potential MTD bookkeeper in your practice and the best way to train and support them, contact the team at Accountancy Learning on 01392 982685 or email study@[email protected].