How To Choose The Right Accounting Software For Making Tax Digital
Making Tax Digital (MTD) is here, there’s no escaping from it. All you can do know is embrace it and get your business ready and fully compliant. One aspect of Making Tax Digital is accounting software. There are so many accounting software providers out there. They offer different prices, different interface, different extra features. How can you choose the right accounting software for Making Tax Digital?
HMRC can’t recommend to you which accounting software is the best for your business. However, choosing the software that meets HMRC standards will mean you comply with MTD. This will give you peace of mind and confidence. If a particular software catches your eye, head to HMRC website and check if it’s on the HMRC-approved accounting software list.
Being able to access your business records from any place in the world is quite an important feature. Even if you’ve been working from one place for years, you never know what’s going to happen. You may be even on holiday when something urgent comes up. It’s even more important if you have other team members or a bookkeeper or an accountant helping you out. Although lots of accounting software providers mostly provide cloud accounting software nowadays (cloud means accessible from anywhere as long as you have the internet connection), there are some versions where you need to install the software on your computer. Check this first before you commit to anything.
Number of users
Some accounting software come with unlimited number of users regardless of the plan, which is amazing. You never have to worry about the costs if your team starts expanding. However, there’s plenty software out there where the more users you want, the higher and more costly package you need to choose. And you don’t always need more advanced packages because you may not need other extra features they come with. All you need is just extra users. Xero accounting software comes with unlimited users on each plan.
Make sure accounting software you want to choose for MTD is quite intuitive to use. You’ll probably still need a professional accountant or a bookkeeper to perform certain more complex tasks. However, remember that accounting software may not be only used by accountants and bookkeepers. Different departments and teams within your business may need to access certain features, for example, for raising purchase orders. You’ll usually have a free testing period when you’ll be able to test the accounting software.
Xero accounting software
HMRC-Approved Accounting software recommended by Our Oxford Bookkeepers
Sometimes you’ll be stuck with something or there will be technical problems with the accounting software. How are the things resolved then? Is the communication easy and quick? When choosing the right accounting software, remember that friendly doesn’t always equal helpful. One of our bookkeepers from our Oxford team spent over an hour on a chat just to find out the feature they were looking for didn’t even exist in that software. But the person from the support team of that software had no clue. We know that no support is always perfect, but if the reviews are in majority bad, then that’s good feedback.
Why is adaptability important when you want to choose the right accounting software for Making Tax Digital? Tax requirements aren’t constant. You can be certain now that there will be changes to something at some point. Is the accounting software company ready for these changes? Are they always trying to grow and improve things? You can check their websites as they normally announce changes to their software. This can help you asses their innovative spirit.
Accountants and bookkeepers use accounting software on a daily basis which means they have lots of practical experience. Sometimes things look great on the advertising websites, but the reality of using accounting software is different. Talk to an experienced accountant or a bookkeeper if you can and ask them about their opinions. They’ll be able to shed some light on certain aspects and help you choose the right accounting software.
Although accounting software automation and integration isn’t a must to be able to choose the right accounting software for MTD, it can significantly improve your business efficiency and save hours of time. You don’t want your team or yourself to be spending time on tasks that can be done automatically. Automated tasks can also be more accurate and less prone to mistakes. Providing you thoroughly check and test them first after implementing! Automation can also reduce your operating costs.
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