Making Tax Digital (MTD) has changed the way small businesses manage and report their finances. Whether you're a sole trader or run a limited company, using the right MTD-compatible software is essential. If you’re not sure what to do next, TreyBridge Accountants can help you choose the best software based on your needs, goals and level of accounting experience.
Why your choice of accountancy software matters
Under Making Tax Digital, HMRC requires digital recordkeeping and submission of tax information via approved software. But it’s not just about ticking a box, as the right system can make your day-to-day financial admin faster, more accurate and far less stressful. Choosing the right software today means fewer errors, better real-time insights and smoother collaboration with your accountant.
What to look for in MTD-compatible software
Here are some of the key features to consider when selecting your platform:
HMRC integration: Ensure the software is recognised by HMRC for Making Tax Digital.
Cloud-based access: Allowing you to manage finances from anywhere, on any device.
Automation tools: Time-saving features like bank feeds, automatic categorisation and invoice tracking.
Scalability: Will it grow with your business as your needs change?
User-friendly interface: Especially important if you’re not an experienced bookkeeper.
Support and training: Look for providers with helpful customer service and onboarding support.
The pros and cons of popular MTD-compatible platforms
Here’s a quick overview of some of the most widely used MTD-compliant software options in the UK.
Xero
✅ Great for small to medium-sized businesses
✅ Intuitive interface and excellent third-party integrations
✅ Strong mobile app
❌ Slight learning curve for beginners
❌ Monthly costs can add up with extras
QuickBooks Online
✅ Very user-friendly, especially for sole traders
✅ Built-in tools for VAT, payroll and invoicing
✅ Easy setup and navigation
❌ Fewer advanced features for growing businesses
❌ Some reports are less customisable
Sage Business Cloud Accounting
✅ Long-established brand with good support
✅ Strong reporting features
✅ Scalable for more complex needs
❌ Interface is less modern than Xero or QuickBooks
❌ Some features require higher pricing tiers
Each system offers something slightly different, so the best choice will depend on how your business operates and how hands-on you want to be with your accounts.
TreyBridge Accountants can help you make the right choice
The team of accountants and tax advisors here at TreyBridge take the time to understand how your business runs before recommending the right software. We can provide all of the following as part of a fully tailored service:
Help you choose the best MTD-compatible solution.
Set up and configure the platform correctly.
Provide training and ongoing support.
Manage your digital records and submissions if you prefer to outsource it.
Integrate your software with other tools your business uses, making everything from payroll to reporting more efficient.
Make digital accounting work for your business
Choosing the right software is as much about control, confidence and clarity as it is about compliance. Get in touch with TreyBridge Accountants today on 01482 235575 or fill in our contact form and we’ll help you take the stress out of Making Tax Digital.
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