Making Tax Digital (MTD) is a new initiative by the UK government that aims to make the tax system more efficient and effective for businesses. As part of this initiative, businesses are now required to keep digital records and submit their tax returns online using compatible accounting software. This change has caused some concern among small businesses and SMEs, who may not be familiar with digital accounting software. However, with the right tools and guidance, MTD can actually benefit small businesses and make their tax processes easier and more streamlined.
One of the key challenges for small businesses when it comes to MTD is choosing the right accounting software. With so many options available in the market, it can be overwhelming to determine which one is the best fit for your business. To help you make an informed decision, we have compiled a list of 8 accounting software platforms that are suitable for MTD.
1. QuickBooks
QuickBooks is a popular accounting software that is widely used by small businesses and self-employed individuals. It offers a range of features such as invoicing, expense tracking, and tax calculations, making it a great option for MTD. QuickBooks also has a user-friendly interface and offers excellent customer support, making it a top choice for many small businesses.
2. Xero
Xero is another popular accounting software that is suitable for MTD. It offers a range of features such as bank reconciliation, invoicing, and expense tracking. One of the key benefits of Xero is its ability to integrate with other business tools, making it a great choice for businesses that use multiple software platforms.
3. Sage Business Cloud Accounting
Sage Business Cloud Accounting is a comprehensive accounting software that is suitable for businesses of all sizes. It offers features such as invoicing, expense tracking, and tax calculations, making it a great option for MTD. Sage also offers excellent customer support and training resources, making it a user-friendly option for small businesses.
4. FreeAgent
FreeAgent is a cloud-based accounting software that is specifically designed for small businesses and freelancers. It offers features such as invoicing, expense tracking, and tax calculations, making it a great option for MTD. FreeAgent also offers a user-friendly interface and excellent customer support, making it a popular choice among small businesses.
5. KashFlow
KashFlow is a simple and user-friendly accounting software that is suitable for small businesses. It offers features such as invoicing, expense tracking, and tax calculations, making it a great option for MTD. KashFlow also offers excellent customer support and training resources, making it a popular choice among small businesses.
6. Zoho Books
Zoho Books is a cloud-based accounting software that is suitable for small businesses and freelancers. It offers features such as invoicing, expense tracking, and tax calculations, making it a great option for MTD. Zoho Books also offers a user-friendly interface and excellent customer support, making it a popular choice among small businesses.
7. Wave
Wave is a free accounting software that is suitable for small businesses and freelancers. It offers features such as invoicing, expense tracking, and tax calculations, making it a great option for MTD. Wave also offers a user-friendly interface and excellent customer support, making it a popular choice among small businesses.
8. FreshBooks
FreshBooks is a cloud-based accounting software that is suitable for small businesses and freelancers. It offers features such as invoicing, expense tracking, and tax calculations, making it a great option for MTD. FreshBooks also offers a user-friendly interface and excellent customer support, making it a popular choice among small businesses.
In conclusion, there are many accounting software options available for small businesses to use for their digital tax returns. Each of the platforms mentioned above offers unique features and benefits, so it is important to carefully consider your business needs before making a decision. With the right accounting software, MTD can be a seamless and efficient process for small businesses, allowing them to focus on growing their business instead of worrying about tax compliance. So don’t let MTD intimidate you, embrace it and choose the right accounting software to make your tax processes easier and more efficient.
