Maintaining accounts can be challenging for any business. Many businesses entrust everything to an accountant. Others prefer to use specialised accounting software. If you choose the right package, good accounting software can help you save time and money, and enable you to manage your accounts more efficiently. It can also help you to meet your reporting obligations, for example, keeping digital records or submitting VAT returns.
From 1 April 2022, all VAT-registered businesses who have not yet signed up for Making Tax Digital for VAT need to do so. If you're choosing new software, it's important to choose a package compatible with Making Tax Digital. Alternatively, you can look for bridging software to connect non-compatible software (like spreadsheets) to HMRC systems.
This guide explains the three main ways of keeping business accounts. It specifically considers the advantages and disadvantages of accounting software and provides an overview of the different types of accounting packages. Once you choose software that suits you, you can use our implementation checklist to help you set it up and make it work for your business.