So many businesses are going digital with their bookkeeping and accounting, as many software providers offer more services and integrations to help enterprises keep on top of their finances.
Digital accounting software allows you to keep everything in one place, including invoices, expenses, payroll and even pensions in some cases.
Meanwhile, thanks to the introduction of Making Tax Digital earlier this year, many companies have no choice but to use a digital accounting package.
Even if you're not VAT registered, or if you're a startup, we'd still recommend looking into online accounting. Starting as you mean to go on ensures you'll have detailed records and use best practice from the beginning.
It's worth bearing in mind that HMRC's Making Tax Digital campaign has only just begun and it will be eventually introduced for Income and Corporation Tax.
Today, we've compared some of the most popular online and cloud-based accounting packages.
Xero enables users to keep invoicing, payroll, expenses claims and inventories in one online space.
You can import your banking, credit card and PayPal data into the application, so it's brilliant for businesses that offer different types of payment to their customers.
On top of this, Xero has an app for both Android and iOS.
The downside is, while the starter package is affordable, it limits you to a maximum of five invoices and 20 bank transactions per month.
Price from £10 per month.
You've probably seen this one from the TV ads. QuickBooks is a favourite among businesses of all kinds.
We think this one suits shop owners and tradespeople the most, as its smartphone app is easy to use while on the go, enabling you to snap photos of receipts as you are handed them.
What's more, QuickBooks links with Shopify and GoCardless. It doubles up as an inventory management tool and a CRM. You can also track your mileage on the go.
Price from £8 per month.
If QuickBooks isn't your thing, FreshBooks might be.
It's very user-friendly and designed for small businesses who have basic accounting needs.
However, FreshBooks not listed by the Gov.uk as MTD compatible, despite it claiming this on their site.
Price from $15 per month.
If you're a freelancer, FreeAgent is a great choice as it allows you to track time, as well as send invoices and record expenses.
Compared to the other software on the market, it's not cheap. But, for what you get, it saves a lot of time with its automation capabilities, such as scheduling and creating recurring invoices, as well as automatically categorising expenses and bank transactions.
Price from £19 per month.
As with a lot of cloud-based services, digital accounting empowers you to do more in less time, while securely storing important information. If you would like any more advice on how technology could boost productivity across your organisation, get in touch with a member of our team today.