If you’re running a business and still relying on spreadsheets or paper records, the way you manage your finances is about to matter more than ever. With new tax rules coming into force and technology playing a bigger role in day-to-day bookkeeping, staying on top of your numbers isn’t just helpful. It’s essential. And yet I still meet business owners who are relying on spreadsheets and receipts in carrier bags (and you know how I feel about those!). So let’s look at the reasons why you should be using accounting software in your business.
Making Tax Digital
I have to mention this one first! In April this year (2026), the first phase of Making Tax Digital comes into play, with the other phases following every year after, applying the new rules to more people and businesses. Once it’s in place, Making Tax Digital means:
- Keeping digital records of income and expenses
- Submitting quarterly updates to HMRC
- Sending an End of Period Statement and Final Declaration after the tax year ends.
And it all needs to be done using online accounting software that’s been approved for Making Tax Digital. You can find the full list and check if yours is compliant here. This change essentially means that as soon as you fall into an MTD bracket, you need to be using online accounting software. It’s not optional anymore! You can read more about Making Tax Digital here.
Real-Time Financial Visibility
Understanding what’s happening in your business finances is critical. Not only does it stop you from making bad decisions, but it also means you can spot problems before they appear. This can be hard to do if all your numbers are in spreadsheets! Online accounting software gives you access to up-to-date information at the click of a button from wherever you are. So you can view your cash flow forecasts, invoices and reports at any time on any device, and use that information to make informed decisions for your business.
Efficiency and Automation
There are a lot of niggly little tasks that go into bookkeeping and accounting that are very necessary, but can take up a lot of your time. Data entry, manual invoicing, and going through bank statements to reconcile everything – it all takes time and energy. And it’s the type of work that people are very likely to make mistakes in. Using online accounting software means you can automate a lot of these tasks, turning hours of reconciliation into a few clicks, and recurring invoices can be generated and sent automatically. So you can minimise mistakes, save yourself a lot of stress and time by making the switch.
Seamless Integration
Do you have a lot of other apps and bits of software you use in your business? Maybe you use a platform to take payments, and another to manage your inventory? Bank feeds, e-commerce platforms, customer relationship management, payroll and HR, document management, expense tracking and even document management can all be integrated seamlessly into your online accounting software. This means your business can run smoothly, with all systems communicating effectively and ensuring that information is where it needs to be.
So, What Software Do I Use?
There isn’t an easy answer to that one I’m afraid! There are dozens of different options out there for accounting software, and at the end of the day the decision usually comes down to what you like to work with, and how much it costs. Try out a few demo versions, play around and see how you feel about them, as this will help you make your decision. However, it is worth talking to your bookkeeper or accountant, as they will be able to recommend one that will work well for your business. If it’s a software your accountant uses as well, that’s a bonus, because they will be able to help you if something goes wrong, and access it to complete your tax returns if needed. And if you need any help choosing some software or getting started, I’d love to help! At Bluebell Bookkeeping and Admin, I work with businesses to help them understand their numbers and feel confident in their decisions. Whether you’re in a muddle and confused, don’t know where to start or just want someone to take on the workload, I’m here to help. Just get in touch to book a free, no obligation consultation.