The rules on how to keep VAT records and submit VAT returns changed on 1 April 2019 under Making Tax Digital. Moving from physical to digital processes can be time-consuming and resource-heavy. VAT registered businesses with a taxable turnover above £85,000 will need to use compatible accounting software to send digital tax returns.
While many accounting software platforms unquestionably add value to your daily work, it can often be difficult to find the right MTD accounting software for your company.
So, what are the MTD software options available on the market and what are their features?
What software can I use for making tax digital?
Highly robust and powerful, Xero accounting software, cloud-based software which is a feature-loaded, double-entry bookkeeping system.
By default, the system comes with the ability to add unlimited users, deploys a well-rounded user interface and dedicated project management functionality to allow for better team integration at all business levels.
However, the system has a reputation for being difficult for new users to pick up while having a lack of comprehensive support.
This means that if you are intending to retrain staff, your teams may have to carry the majority of the burden. This is where One Click Acccountant comes in.
As Xero Certified Accountants and Xero Partner, One Click Accountant is best placed to help you run your business efficiently and profitably using Xero.
Aimed at: Small business owners and accountants.
Cloud-based and intuitive, FreeAgent is designed to be an affordable solution for freelancers, sole traders and small business owners.
The default system allows you to hold all the elements of your business on the iOS and Android app, letting you automate payments, carry out expense tracking and more.
However, unlike many services, FreeAgent does not offer a trial period for the software which can make it awkward to road test.
So be sure you know what you’re getting into before you make a long-term commitment to the system. One Click Accountant is here to help you navigate through FreeAgent, as we are accredited FreeAgent Accountants.
We dedicate a qualified accountant to all our clients as a key point of contact providing fully comprehensive account support to Small Business, Contractors, Freelancers, Consultants and Sole Traders.
Aimed at: Individuals, freelancers, contractors and smaller businesses looking for a flexible, fit-for-purpose solution.
Sage – Business Cloud
A highly-flexible alternative, Sage performs the rare task of being an all-in-one solution for businesses of all sizes.
Cloud-based and responsive, it is available in a selection of options ranging from entry-level packages to end-to-end business control with an ability to cover timesheets, project management tools and more.
A generous free trial allows your team to get set up with the system and deploy a range of apps for remote working or providing regular updates.
However, this can leave the system running slowly on lower end systems, making it essential to put it through its paces on your existing infrastructure to ensure that it’s truly right for your business.
Aimed at: Entrepreneurs, start-ups and small businesses.
Find out more about MTD
If you are unsure which MTD software is appropriate for your business, the team at One Click Accountant is here to help.
With many years’ of accountancy experience across a range of sectors, we work with you to ensure your business receives the bespoke care it needs while enjoying the highest standard of professional care when it comes to implementing digital change throughout your organisation.
If you would like to know more about Making Tax Digital for VAT, do not hesitate to get in touch with our team. Contact us today to find out more about Making Tax Digital with One Click Accountant.