Making Tax Digital (MTD) is a government initiative that requires businesses in the UK to keep digital records and submit their tax returns digitally. This new process aims to make tax administration more effective, efficient, and easier for small businesses and self-employed individuals. As the deadline for MTD draws closer, many small business owners are still unsure about which accounting software to use. In this article, we will explore eight accounting software platforms that can make MTD compliance a seamless experience for small businesses.
1. Xero
Xero is a cloud-based accounting software that offers a range of features to help small businesses manage their finances. Its MTD-compatible software is designed to make tax filing easier for small business owners. Xero automatically calculates and submits VAT returns to HMRC, saving business owners time and reducing the risk of errors. With Xero, users can also track expenses, manage invoices, and monitor cash flow all in one place.
2. QuickBooks
QuickBooks is one of the most popular accounting software platforms in the UK. It has a user-friendly interface and a variety of features to help small businesses stay on top of their finances. QuickBooks’ MTD software allows businesses to submit VAT returns directly to HMRC, and it also offers real-time reporting, automatic bank feeds, and inventory tracking. Additionally, QuickBooks integrates with many third-party apps, making it a versatile choice for small businesses.
3. Sage Business Cloud Accounting
Sage Business Cloud Accounting is an all-in-one accounting software designed for small businesses. Its MTD-compatible software offers features such as automated invoicing, VAT calculations, and real-time reporting. Sage is known for its strong security features, ensuring that all sensitive financial information is kept safe. Moreover, Sage offers a range of plans to suit the needs of different types of businesses, making it a flexible option for small businesses.
4. FreeAgent
FreeAgent is a cloud-based accounting software that caters specifically to small businesses, freelancers, and contractors. It offers MTD-compatible software that simplifies tax filing by automatically submitting VAT returns to HMRC. FreeAgent’s intuitive interface makes it easy for non-accountants to manage their finances without any prior accounting knowledge. It also offers features such as time tracking, project management, and expense tracking, making it a great all-around solution for small businesses.
5. Wave
Wave is a free cloud-based accounting software that is ideal for small businesses on a tight budget. Its MTD-compatible software offers features such as automatic VAT calculations, real-time reporting, and receipt scanning. As Wave is free, it may not have all the features of other paid accounting software platforms. However, it is a great option for small businesses looking for a basic, easy-to-use accounting software.
6. KashFlow
KashFlow is another popular accounting software designed to simplify MTD compliance for small businesses. Its MTD software allows users to submit VAT returns directly to HMRC, and it offers time-saving features such as automated invoicing and bank reconciliation. KashFlow also provides users with cash flow forecasts, making it easier for small businesses to plan and manage their finances.
7. Clear Books
Clear Books is a cloud-based accounting software that aims to make accounting less complex for small businesses. Its MTD-compatible software offers features such as automatic VAT calculations, expense tracking, and multi-currency support. Clear Books also integrates with over 750 third-party apps, making it a versatile option for businesses looking to streamline their financial processes.
8. Zoho Books
Zoho Books is a cloud-based accounting software that offers a range of features to help small businesses manage their finances. Its MTD software allows users to submit VAT returns directly to HMRC, and it offers real-time reporting, automated bank feeds, and project tracking. Zoho Books also offers a mobile app, making it convenient for small business owners to manage their finances on the go.
In conclusion, the aforementioned accounting software platforms offer a variety of features that can help small businesses comply with MTD regulations. It is important for businesses to carefully consider their needs and budget before choosing a suitable accounting software. With the right software, MTD compliance can be a seamless process for small businesses, allowing them to focus on what they do best – running and growing their business. So, don’t wait any longer, choose the right accounting software for your business and make MTD compliance a breeze.