Choosing a preferred accounting system depends on what it will be used for. Is it merely to keep your accounts for the purpose of preparing your accounts and tax returns, or is it also to facilitate VAT submissions or to look at your business performance?
My preferred software solution is Xero. We currently have over 35 clients using this software. The main advantage of using Xero is that it links with your online banking system which will pull through transactions directly into the Xero dashboard without you having to key in any data. This data is always live and updated daily.
Personally, I process my transactions daily and then I am able to run a Profit and Loss Report to see how I am doing. Alongside this, it is possible to add budget details so that you can track your actual results against predictions.
You may need to change the way you operate to efficiently use the software. I am in the process of producing a short guide on how to make the most of your cloud accounting system. Let me know if you would like a copy when available.
Please be aware that over the next three years the Making Tax Digital regime will be rolled out. As of April 2022 anyone that is VAT registered but below the VAT threshold, is required to submit information via the Making Tax Digital system. In addition, Making Tax Digital for income tax is mandatory from 6 April 2023. This will include self-employed businesses and landlords who incur a rental over £10,000.00 from their property. My philosophy is to have a system in place for this; by the time Making Tax Digital becomes live, the processes are already in place.
I have recently secured 5 licences with a 50% discount on the Xero fees until June 2021 for any new subscribers. If anyone would like to have a demo or trial, please let me know.