Accounting software

Yes, Xero is one of the most popular cloud accounting systems for UK companies and is compatible with many British accountants and with MTD for VAT when needed. It works remotely: you connect the bank (including some digital banks), issue invoices, and hand the file to your accountant at year-end.

The cost is a monthly subscription. If your volume is very small, you might start with spreadsheets and then move to Xero as your invoices grow.

FreeAgent is a popular British accounting program for small companies and contractors, and is usually clearer for beginners than heavier systems. Many digital banks offer integration or deals with it. It suits an Ltd with a medium transaction volume.

A British accountant may prefer Xero or FreeAgent depending on their office — ask your accountant before committing annually.

QuickBooks Online is available and used by some accountants, especially if you have multi-country activity or are used to it. In the small UK market, Xero and FreeAgent are more common among local accounting firms. The criterion: what does your accountant use? Compatibility with them matters more than the brand.

All the options help you organise invoices and expenses before the tax return.

From your first genuine revenue or expense — even if it is small. Waiting until year-end causes chaos and lost invoices. If you remain dormant with no transactions there is no need for an immediate subscription; at your first client, start with the software or at least an organised template.

Eteform reminds you of the obligations; choosing the software is an operational decision with your accountant.