The days of shoeboxes full of receipts are coming to an end. As Making Tax Digital (MTD) extends its reach to all businesses – see our previous post regarding implementation dates – it will become necessary to use digital bookkeeping and accounting software. Furthermore, it will also be a requirement to use software that is compatible with HMRC’s systems.
The move away from desktop accounting is well underway, with businesses using cloud-based services, where all financial records are stored and managed in the cloud. This means they are accessible at all times and from any device.
There are a number of accounting software options available and each product offers slightly different variations on a theme – you’ve probably heard of QuickBooks, Xero and Sage and they are just three of the many on offer. TN Accountancy has considered them all, in terms of usability, features and pricing, and the one that came out on top for us was Xero.
Here’s why we chose Xero and why we are Xero partners.
Usability
Xero is incredibly user-friendly and intuitive. It uses a simple drag and drop function that makes it easy to marry up documents with their relevant transactions. It connects easily with your bank accounts and comes with reporting that you can customise to your own needs. It wasn’t designed with any one industry in mind, so Xero is suitable for pretty much any type of business. There is also a 24-hour helpline available should you get stuck.
Features
One of the winning aspects of Xero is its wide range of features. Whether you want to just keep track of your expenses and send out invoices, or you want the whole package of payroll, bookkeeping, generating purchase orders, paying bills, keeping on top of stock and reconciling your bank accounts, Xero has it all. There is also a stack of apps and third party integrations you can download that offer further individual services. Plus you and your accountant both have visibility and access so you can keep on top of your accounts in real time.
Pricing
Xero has a variety of packages for different size businesses and they all have a brilliant baseline of features, including submitting VAT returns to HMRC, sending invoices, and bank reconciliations. The lowest starting price is £10 a month although Xero offer a free trial and there are starter pricing plans available.
TN Accountancy decided to become a Xero Partner because we think it’s the best software out there, hands down. It’s safe and secure, HMRC-friendly and helps us to manage and streamline our workflow, meaning we have more time to give to our clients and advise them on the most tax efficient ways of operating. It is like having an extra pair of hands. Whilst MTD was initially greeted with a few groans, software like Xero has made the transition and current way of working easy.
Best of all, as Xero Partners, we are able to pass on a discount to our clients who start to use Xero. It’s timesaving, money-saving and altogether allows a highly efficient way of working. Whilst other cloud-based accounting software is available, we’re with Xero all the way.
Contact Us
Please contact us to find out how you can get the most out of Xero, how you can reduce your tax liabilities and maximise your tax efficiency.
Please note that the above is for general information only and does not constitute financial or tax advice. You should not rely on this information to make or refrain from making any decisions. You should always obtain independent professional advice in respect of your own situation.
