You might wonder why you’d use accounting software instead of leaving everything to your accountant. There are some very good reasons - and with HMRC’s Making Tax Digital (MTD) project rolling out across VAT, Corporation Tax, and Income Tax in the coming years, it’s becoming increasingly important to keep records digitally. Income Tax reporting is expected to start in 2026/27, with partnership and corporation tax returns following soon after. Getting onto software now can save time and stress later.
Here are ten benefits:
1. Cost
Software can be cheaper than paying someone else to do your bookkeeping. Many packages start at under £10 per month. Depending on how many transactions go through your account, the cost to pay someone else to do your bookkeeping will likely exceed this.
2. Time Saving
If you currently provide information to your accountant in a spreadsheet, software can be a good time saver. You can link the software to your bank accounts, set up rules to automatically classify transactions and anything that doesn’t fall within these rules can be easily categorised.
3. Real‑Time Reporting
You’ll see up‑to‑date figures on how your business is performing. If you are technically savvy, or with the help of your accountant, it is also possible to set up customised reporting.
4. Better Advice
Your accountant can access the latest data, meaning their guidance is more accurate and timely.
5. Control Over Finances
Knowing your profit and cash position helps you make better decisions at the right time.
6. Invoicing Customers
Most systems include invoicing tools, letting you create and send invoices in seconds. If you already have an invoicing system, it may be a cheaper option to have an all-in-one system.
7. Linking Invoices to Payments
Attach supplier invoices directly to transactions, making it easier to find records - and to satisfy HMRC queries.
8. Cash Flow Management
Track expected payments in and out, giving you a clear view of available cash for purchases or investment.
9. Staying Organised
Automated systems make it easier to keep on top of paperwork on a weekly or monthly basis rather than leaving everything until year.
10. Plugins
Accounting software may have plugins that you can use to increase the automation of your business. Add‑ons like Receiptbank or Hubdoc let you take photos of receipts on your phone or import bills automatically.
Choosing Software
The two most widely used options are Xero and QuickBooks, both offering free trials. Free software exists too, though with fewer features.
At Anderson Accounts, we are a Xero Bronze Partner and can sometimes offer deals not available directly. Xero is my preferred system - I switched when spreadsheets became unwieldy — and all our staff are qualified to help set it up to your requirements.
If you are interested in a Xero trial, feel free to get in touch and we can assist you with this. If you prefer to use an alternative system, I am still able to assist you with your accounts, but unfortunately I will be unable to assist in the set up of the software.
