5 reasons to digitalise your accounts in 2023

Michelle Watson, Associate and Digital Accounting specialist at Moore

In today’s ever-changing business landscape, digital transformation is no longer an option but a necessity.

However, with HMRC delaying its Making Tax Digital for Income Tax programme (which makes it mandatory for individuals and landlords with income over £50,000 per year to keep records of business income and expenses digitally) until 2026, many may feel there is no urgency to move to digital accounting software just yet.

While this delay will give those in scope more time to move to digital accounting software, the accounting specialists at Peterborough-based Chartered Accountants Moore recommend that you don’t leave making the change to the last minute. There are significant benefits to adopting cloud accounting software sooner rather than later.

Michelle Watson, Associate and Digital Accounting specialist at Moore looks at five reasons to digitise your accounts well in advance of the April 2026 deadline.

1. Make real-time decisions
If you’re using spreadsheets or paper-based accounting processes, it’s difficult to get an accurate, up-to-date view of your financial situation. Cloud accounting systems give you access to real-time financial data, so there’s no more waiting for historical reports that are weeks or months out of date.

Working on real-time data rather than historical information means you can make better financial decisions.

2. Automate manual processes
Cloud accounting software packages such as QuickBooks, Xero or Sage Accounting let you automate those manual tasks that take up a lot of time, such as reconciling bank transactions, tracking mileage and sending invoice reminders.

3. Spot trends and opportunities to help your business grow
With cloud accounting software it’s easy to collaborate with your accountant too. Because all the data is stored online, there’s no need to manage multiple versions of the same file or copy data onto drives to share it with others. Your accountant can log in and will often spot trends and highlight any challenges or opportunities for the future that you might have missed.

4. Give yourself plenty of time to prepare for Making Tax Digital for Income Tax
Making the move to cloud accounting software well in advance of HMRC’s deadlines for MTD gives your accountant time to highlight any errors in your record keeping well ahead of any submissions to HMRC. This means the process will be smoother and a lot less stressful.

5. Unlock the full potential of your software
Making the move to digital sooner rather than later gives you more time to become familiar with your chosen software package, helping you unlock its full potential in terms of efficiencies and benefits.

You can move to a digital accounting package at any time, but to minimise disruption to your business and keep things as straightforward as possible we recommend that you make the change at your business year end.

● For further advice on moving to digital accounting software, contact Moore on 01733 397300.

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