All 26 Computerized Bookkeeping questions
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What does 'Making Tax Digital' (or similar digital tax rules) require?

Beginner

Answer

Digital tax regimes like the UK's Making Tax Digital require businesses to keep digital records and submit tax returns (e.g., VAT) using compatible software rather than manual or copy-typed figures. This pushes businesses toward computerized bookkeeping with digital links from records to the return.
Real-world example A VAT-registered business uses MTD-compatible software to keep digital records and file returns.

Common follow-ups: What records must be digital? | Why does it favor software?

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All 26 Computerized Bookkeeping questions