Accounting software is a type of computer programme that helps you to automatically store, generate and analyse your financial accounts. There are a range of accounting softwares available, so always ensure you look around for the best option for your business’ needs. If you self-assess your taxes as an individual, accounting software can help you to send invoices, log expenses, keep track of your monthly income and submit your Self-Assessment and VAT tax returns.
For many taxpayers, a basic spreadsheet logging your income and expenses will suffice for your accounts. If you are a sole trader registered for VAT, you’ll need to make the switch to online software in order to keep your account reports compliant with MTD. From April 2022, VAT-registered sole traders must use software to report VAT, so contact our experts today for advice on the best methods and software to keep your business running in line with current stipulations.
Accounting software doesn’t replace your accountant – rather it shows your earnings and outgoings to help you to calculate the tax you owe. An accountant is there to help you make claims and offer advice on the expenses for which you can make a claim, or the tax-free allowances you should be making the most of.
This all depends on your business and your own needs and preferences. We have experts in Sage, Xero, QuickBooks, Free Agent and more. Speak to our accountants today to discuss your options and we can find the best solutions for you!
In the UK, you must keep your tax records for at least six years from the end of the relevant tax year. Accounting software can help you to digitally store your records without taking up space in your office!