Managing your finances with cloud accounting - are you ready for MTD in April 2026?
RPG Crouch Chapman LLP (RPGCC)
RPGCC Chartered Accountants, Auditors and Tax advisers delivering big firm expertise with small firm personal service.
Managing finances can feel overwhelming, but it’s essential for your financial health and long-term success. Whether you’re a small business owner or an individual, staying on top of your accounts ensures you can plan effectively, avoid unnecessary costs, and meet your tax obligations.
Cloud accounting is one of the most accessible and efficient tools available to simplify financial management. With features that save time, increase accuracy, and provide better insights into your money, it’s a solution worth considering – especially with the opportunities and challenges of the current tax year.
Many of us are already familiar with the term Making Tax Digital but with MTD coming in from April 2026 for sole-traders and Landlords with turnover more than £50k there will be an obligation for many more to keep digital records. The days of cashbooks, boxes of receipts and carrier bags full of files are long gone. Making the move to digital cloud accounting now will mean that you comply with the April 2026 reporting requirements with time to spare!
Below we have set out how cloud accounting works, its benefits for individuals and businesses, and how to get started.
What is cloud accounting?
Cloud accounting software lets you manage your finances online. Unlike traditional accounting systems tied to a single computer or requiring manual updates, cloud solutions work via the internet. This means you can check your financial information or share it with us, your accountant, anytime, anywhere.
For example, you can record expenses, issue invoices, or track your bank balance all from your smartphone. Cloud accounting also makes it easier to stay organised because everything is stored digitally, saving you from sorting through piles of paper.
How cloud accounting benefits you
If you’re not already using cloud accounting, here are some key reasons to consider it:
Access to up-to-date financial information: Cloud accounting gives you a clear, real-time view of your finances. Whether you’re checking how much you’ve earned, seeing what’s due to go out, or preparing for tax deadlines, having accurate data at your fingertips is a game-changer.
Time-saving automation: Manual tasks like calculating VAT, chasing invoices, or organising receipts take time. Cloud systems automate much of this work. For example, you can scan receipts with your phone, and the software automatically updates your accounts.
Easier collaboration with your accountant: Cloud accounting makes it simple to share financial data securely. We can access your accounts directly, making it easier for us to offer advice, prepare tax returns, or spot potential savings.
Cost savings: Instead of paying for expensive accounting software or dedicating hours to manual tasks, you can focus on what matters most – growing your business or managing your personal goals. Many cloud platforms offer affordable subscription plans.
Better tax compliance: Staying compliant with tax rules can be stressful, but cloud accounting tools are built with this in mind. They help you stay organised, ensure you don’t miss deadlines and are often updated to reflect the latest HMRC requirements, including Making Tax Digital (MTD).
How does digital accounting work when working with us?
When working with us, or indeed any accountant, cloud accounting doesn’t replace us and our expertise – it enhances the service we offer. The software takes care of many routine tasks, allowing us to focus on giving you tailored advice and finding opportunities to save you money.
For example:
We can access your data in real time, helping you make better decisions when opportunities or challenges arise.
You’ll spend less time gathering paperwork because much of the information we need will already be in the system.
Cloud accounting tools make staying prepared for tax deadlines easier, avoiding last-minute scrambles.
Choosing the right cloud accounting platform
If you’re new to cloud accounting, choosing the right platform is an essential first step. Popular options in the UK include Xero, QuickBooks, and Sage. Here’s what to consider:
Features: Start by evaluating what you need the software to do. Basic bookkeeping tools such as income tracking, expense categorisation, and bank reconciliation may be sufficient for individuals and small businesses. However, if you run a more complex operation, look for advanced features like invoicing, payroll management, VAT calculations, inventory tracking, or financial reporting. Some platforms also offer industry-specific features, such as property management tools for landlords or project tracking for freelancers. Make a list of your priorities to help you compare providers and ensure you’re not paying for tools you don’t need.
Ease of use: The best cloud accounting software is easy to navigate, even for those unfamiliar with technology. Look for a platform with a clean, intuitive interface and minimal jargon. Many providers offer free trials or demo videos – use these to test whether the software feels straightforward to use. If you’re not comfortable entering transactions or generating reports after a short trial, it might not be the right fit. Simple navigation and mobile-friendly apps are especially important if you plan to manage your finances on the go.
Cost: Budget is a key factor for most users. Cloud accounting platforms generally use subscription models, with plans that range from basic (around £10-£15 per month) to premium options (£30 or more per month). While the cheapest plan may seem appealing, make sure it includes everything you need. For example, a basic plan might not offer payroll services or multi-currency support. Watch for hidden fees, such as charges for additional users or advanced features. Balancing affordability with functionality ensures you’re getting value for your money.
Integration: When choosing a cloud accounting platform, consider how well it integrates with your existing tools and systems. Strong integrations reduce manual work and improve accuracy by allowing your financial data to flow seamlessly between systems. Common integrations include eCommerce platforms like Shopify, payment gateways such as PayPal or Stripe, and inventory management tools.
One of the most essential integrations, especially for small businesses and individuals, is bank feeds. Bank feeds automatically connect your accounting software to your bank accounts, importing transactions in real time. This feature simplifies reconciliation, ensures your financial data is always up to date, and significantly reduces the risk of errors from manual data entry. If you’re juggling multiple accounts, bank feeds can save hours of work and help you maintain an accurate view of your finances.
Whether you're connecting a CRM system, point-of-sale tools, or your bank account, integrations ensure smoother workflows and better financial management. Prioritise a platform with strong integration capabilities to make managing your money as straightforward as possible.
Reliable customer support is crucial, especially if you encounter issues during tax season or when you’re new to the platform. Look for software providers that offer multiple support options, such as live chat, email, or phone assistance. Many platforms also have extensive knowledge bases, video tutorials, and user communities where you can find answers to common questions. Before committing to a provider, read reviews to see how responsive and helpful their support team is. A strong support system can save you time and frustration when you need guidance.
By considering these factors, you can choose a cloud accounting platform that fits your needs, budget, and level of expertise. Working closely with us during this process can also help you select a solution that complements our work and benefits your overall financial management.
Getting started with cloud accounting
Making the switch to cloud accounting doesn’t have to be complicated. Here’s how to get started:
Speak to us: We can recommend the best software for your situation and guide you through setup. We can also ensure the platform meets HMRC requirements.
Set up your account: Once you’ve chosen a platform, follow the setup process. This may include connecting your bank accounts, uploading financial records, and setting up invoicing templates.
Learn the basics: Most cloud accounting tools offer tutorials or guides. Spend time getting familiar with key features, such as creating invoices or tracking expenses. We can also offer training.
Use it regularly: Make updating your accounts a routine. This will save time in the long run and ensure you always have accurate data to share with us.
Addressing common concerns
If you’re hesitant about moving to cloud accounting, you’re not alone. Here are some common concerns and how to address them:
“I’m not tech-savvy” Many platforms are designed to be user-friendly. Your accountant can also help you get started, and most providers offer excellent customer support.
“Is my data safe?” Cloud providers prioritise security. Features like encryption and two-factor authentication protect information from unauthorised access.
“What if I lose internet access?” Most platforms save your data automatically so that you won’t lose anything. While you’ll need an internet connection to use the software, you can still access information offline through certain features.
Why it’s worth the switch
Cloud accounting isn’t just about keeping up with the latest technology. It’s about making financial management easier, saving time, and working more effectively with us. Whether you’re running a business, managing rental properties, or simply staying on top of personal finances, cloud accounting can help you take control of your money.
By combining the power of cloud accounting with your our expertise, you can simplify your financial management, stay compliant with tax rules, and make informed decisions about your money.
If you would like to speak to a member of the RPGCC team about cloud accounting or preparing your business for the changes to making tax digital, please contact us on 020 7870 9050.