Using cloud to ease tax pains

Using cloud to ease tax pains

Summary: When governments look to change tax rates, or introduce new taxes, cloud seems to come into its own.

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When governments look to change tax rates, or introduce new taxes, cloud seems to come into its own.

New Zealand has just increased its GST rate from 12.5 per cent to 15 per cent, something cloud evangelist Rod Drury of Xero described as a "watershed event" for the cloud in New Zealand.

Early in the year, we saw fears of disruption to the country's 600,000 GST-registered businesses, with talk of a fifth of businesses possibly needing new software.

Certainly, adjusting for the new rate seemed to involve more than fiddling with a bit of code.

For vendors like MYOB, the change presented opportunities to sell new upgrades.

However, what struck me was how users of cloud-based software systems had the work done for them!

Rather than every small business owner having to find the right software update and then work through a complex set of steps, cloud-based providers make the changes on behalf of all their customers.

And the GST change is just the beginning; the Inland Revenue Department's "Making Tax Easier" initiative, which aims to move from paper-based systems to customer-focused online technologies, and other policy work will result in a number of other accounting changes over the next few years.

Certainly, this is a fine sell for the cloud.

Topics: Cloud, Government, Government AU, New Zealand

Darren Greenwood

About Darren Greenwood

Darren Greenwood has been in journalism, not all of it IT, since the days of typewriters and long before the web spun its way around the world.

Coming from Yorkshire, he can be blunt, and though having resided in New Zealand, as well as Australia, for quite some time, he insists he is not one of the 'sheeple!'

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4 comments
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  • Yes indeed - just check out Saasu.com and their update process - no need for customers to even lift a finger. http://productblog.saasu.com/
    anonymous
  • Hmm, may be just me but the tags 'cloud', 'government' and 'taxation' together give me a nervous twitch...in the hip pocket area. Maybe the addition of 'failsafe security' might aleviate this condition, then again...
    btone-c5d11
  • Frightening readers is definitely the purpose of choosing our tags. ;)

    Suzanne Tindal
    News Editor
    suzanne.tindal
  • Using the cloud to help small business has been developed with IAM (Interactive Accounts Manager). The only fully SBR enabled accounting software, standing head and shoulders above other SBR products that are either single feature focused on require middle wear (more time and more money) to work.
    IAM was the first to lodge a a live BAS under the new Federal Government SBR initiative.

    Also, to your point about changing the tax rates... with IAM, theses changes that are massive issues, requiring costly upgraded to users are almost no existent at IAM. With IAM they sync to all the Government reporting agencies so their customers won't be penalized with "software upgrade fees".
    Until you have seen, used and written a thorough story on SBR enabled solutions, we'll continue to see negative fear stories, when there is a global solution to cloud accounting that our Government and other Governments around the world can tap into right here in Australia, made by Australians.
    The Cherry Ox