2021: A Big Year for Coconut and Our Accountant Partners
2021: A Big Year for Coconut and Our Accountant Partners
play_circle
Company updates
17
December 2021

2021: A Big Year for Coconut and Our Accountant Partners

2021 will be a year that we’ll remember at Coconut for a while. This year saw a big change in our business come to fruition.

Simon Lofts
Simon Lofts
Head of Accountant Partnerships at Coconut
No items found.
No items found.
No items found.

2021 will be a year that we’ll remember at Coconut for a while. This year saw a big change in our business come to fruition.

The fundamental change we made this year

As you may already know, this year we stopped opening new current accounts and we’ve since doubled down on bank statement feeds through Open Banking. By taking advantage of Open Banking, we’ve been able to build a bookkeeping and tax app for sole traders, that helps them stay organised and on top of their books all year round. 

We no longer believe that combining a current account with a tax tool is the best solution for sole traders. Open Banking has completely transformed the financial landscape, and by requiring customers to switch their bank account, it limits their choice and risks not meeting their needs.

Furthermore, most sole traders have business transactions in their personal accounts or credit cards. With Open Banking, Coconut can now help them unmuddle these two worlds; and by ensuring they have real-time information at their fingertips (and those of their accountants), keeping on top of their finances will require much less manual effort from both themselves and the accountants they rely on.

Sole traders have been left behind by cloud accounting

Not only is a bookkeeping and tax app, powered by Open Banking, the best solution for Sole Traders, it’s now the only viable option for MTD ITSA. 

But, what about cloud accounting I hear you ask?

Well, the cloud accounting revolution, while revolutionary for companies and accounting firms, left behind the smallest businesses that make up the majority of enterprises in the UK - sole traders. Cloud accounting solutions serve companies well, that there’s no doubt, but they're too complex and feature-rich (thus cost prohibitive in most cases) for the simple needs of a sole trader business. Because of that, sole traders have, until now, been left behind in the world of disparate single use tools, spreadsheets, and very often still, paper and pen.

With MTD ITSA on the horizon, that simply won’t do. 

More accountants than you think are preparing for MTD ITSA right now

We’re far from alone in this way of thinking. AccountingWEB Live in early December afforded us the opportunity to speak to some awesome accountants over the two days. Of the many firms and individuals that we got to chat with, all of them are already on the hunt for the tools they can begin to build processes, and even new service lines around, in anticipation of MTD ITSA. 

These accountants are dialled into the needs of their sole trader clients - they know that simply multiplying their current annual Self Assessment fee by four will simply not work for sole traders - those with little wiggle room for an increase in costs. So their aim is to increase efficiency through automation, in order to reduce man hours to be able to service these clients more often, for not a lot more money, if any. Some are even viewing MTD ITSA as their opportunity to win new clients, so creating capacity is even more critical to those - it’s all very exciting! 

Thank you to our Coconut Accountant Partners for everything

But, with 2021 coming to a close and 2022 slightly ajar, we’d just like to thank each and every one of our Accountant Partners who made this year what it was. Thank you from all of us at Coconut for your support, continuous feedback, and most importantly your partnership as we moved forward with our business. We've had a fabulous time with you and can’t wait until next year. 

Now all that’s left is to wish all of our Accountant Partners, customers and friends a relaxing festive season and a smooth January. We look forward to connecting with you all in the New Year (aka February). 

Take care out there!

Coconut helps you track income, claim expenses and sort your taxes. Start your free trial today.

Sign Up
Sign Up

Keep reading

We’ve Evolved: Meet Coconut 2.0

Join us on 15th December to find out how Coconut has evolved over the past 12 months, what our plans are for the future, and how “Coconut 2.0” will make it easier than ever for self-employed people—and their accountants—to manage their finances.

arrow_right

Tech-savvy Accounting Firm Gets More Done in Less Time with Coconut

“The key thing for all accountants is time saving and efficiency, because there are never enough hours in a day I think any accountant who looks into Coconut will realise the potential time saving is massive.”

arrow_right

How Coconut helped the barefoot accountant (and their clients) run smoother, plan smarter, and prepare for Making Tax Digital

The barefoot accountant provides accountancy services to creative sole traders who just want to be fabulously creative and not worry about the boring stuff. Operating from a shop front in Hertfordshire, the firm delivers personalised tax and accountancy services in a relaxed and judgement-free zone.

arrow_right
Coconut is the trading name of Coconut Platform Ltd, company number 09904418. Coconut is registered with the Financial Conduct Authority (FCA) as an Account Information Service Provider under the Payment Services Regulations 2017 (reference 931194).

Coconut provides some customers with a business current account, but is not a bank. The Coconut current account is an e-money account provided by Prepay Solutions (PPS), a trading name of Prepay Technologies Ltd, which is an electronic money institution authorised by the FCA under the Electronic Money Regulations 2011 (reference 900010) for the issuing of electronic money.

PPS holds all funds in a safeguarded account in accordance with the Electronic Money Regulations 2011 which protects customers against Coconut or PPS’s insolvency. The Coconut Mastercard is also issued by PPS pursuant to a licence by Mastercard International.