You may want to send an email to your clients to let them know you're working with Coconut and why.
Below is a detailed email template:
Hi [CLIENT NAME]
[PRACTICE NAME] is working with Coconut, a simple accounting and tax app, as we move to digitise how we work with sole trader clients. I want to tell you about it before I send an invite to you to download their app.
Why are we making this change?
As well as the significant benefits of running your finances on a digital platform, the government is also requiring all sole traders who earn over £10k to use a digital product for financial record keeping as part of their Making Tax Digital for Income Tax & Self Assessment (MTD ITSA) roll-out. This will be mandated by April 2024.
As a result of the MTD ITSA mandate, you and we will need to:
Use software that is compatible with MTD ITSA, such as Coconut
Keep digital records on the chosen software, instead of paper or other storage
Send quarterly updates for business income and expenses to HMRC through the software, amounting to 4 submissions each year
Submit your end of period statement at the end of the year and a final declaration
As you work with us, you don’t need to do anything to comply other than start using this software and we will help with the rest.
When should I start using the software?
We believe now is the right time to move clients to a digital process so we are starting the to move the sole traders to Coconut to start preparing for Making Tax Digital.
The sooner we move to a digital product the easier the transition will be. Not only this, it will benefit your business by making it more efficient. You’ll get visibility over business performance and we will be able to sort you much more effectively.
What is Coconut?
Coconut is a really simple accounting app for self-employed people and their [ACCOUNTANTS / BOOKKEEPER].
Here’s what you’ll get and why we’ve chosen Coconut as our preferred choice:
A nicely designed mobile app, already used by thousands of self-employed people like you.
Insights about your income and expenses, and suggestions for how much to set-aside for tax without doing lots of data entry.
Sharing of information with me automatically, so I won’t ask you to send me statements, invoices, receipts etc.
The process of preparing your tax returns (especially when they are quarterly) will be much easier for us both and we can work together more efficiently.
No need to worry about upcoming digital tax changes from Making Tax Digital.
What is the cost?
[HERE YOU SHOULD OUTLINE HOW YOU PLAN TO COST THE CHANGES. CONSIDERATION SHOULD BE GIVEN TO THE FOLLOWING:
WILL YOU CHARGE MORE REGULARLY, I.E MOVING TO MONTHLY FROM ANNUAL BILLING
WILL YOU CHARGE ON THE SOFTWARE AT THE HEADLINE PRICE OF £7.50 AND TAKE THE MARGIN FROM YOUR DISCOUNT
WILL YOU CHARGE ON THE SOFTWARE AT COST
WILL YOU NOT CHARGE FOR SOFTWARE AND INCORPORATE THE COST INTO YOUR FEE]
What are the next steps?
We are planning to send out invitations through Coconut to all our clients. We are looking for a few clients to be the first to onboard to Coconut. Then we will roll it out to everyone. [If you’d like to be one of the first to digitise your business, please acknowledge this email and you’ll be one of the first to receive an invite.]
Once you’ve signed up for the app, you’ll be asked to connect any bank accounts and credit cards you use for your business, which will then give [OUR PRACTICE] read-only access too - neither Coconut nor us can make payments, we can just see the data, so it’s very secure.
It uses ‘Open Banking’, which is used by millions of people in the UK to securely send transaction data from your bank to apps like Coconut. And Coconut are regulated by the FCA too.
Once you’ve taken a couple of minutes to sign up and securely connected your bank account(s) or credit cards, you can use the app as little or as much as you want - you might like to try out their invoicing tool for example. Whilst it’s a mobile app, you can also use Coconut on the web once you’re signed up.
I’ve attached a document with an overview of Coconut. [ATTACH THE 1 PAGE PDF FOUND HERE]
Let me know if you have any questions.
For shorter, less detailed email templates and tips on how to get your clients set up in Coconut after you've invited them through the Accountant Platform, check out this article: Communicating Coconut to Your Clients