- Business

What Software is Needed by Accountants?

There is a diverse range of software solutions available for accountants. The very nature of their work is diverse, meaning an all-in-one solution is typically very valuable for an accountant, but with so many options available knowing what software is most-needed is often difficult.

Accounting software gathers and analyses various types of financial data. It’s an important component of any business, so choosing the right software is a must. The type of software required varies from each accountant, but there are many types of software that most accountants need, which are outlined below.

Self-Assessment Software

Accountancy firms always require robust self-assessment software. Self-employed people regularly hire accountants to help complete their tax returns, with self-assessment software making this process far more streamlined. 

The software needs to let accountants complete unlimited tax returns for individuals, partnerships, and trusts filing their tax returns each year. Essential features for this software include dividend and client databases, capital allowance calculators, lockable returns, task reminders, report generators, and online filing.

Practice Management Software

Accountants completing practice management require dedicated software to meet the unique requirements of managing the finances of a doctor’s office. Practice management software typically works as a larger database for various clients, meaning it needs features that help organise large amounts of data.

Common features included with practice management software include secure client databases, online filing, integrated corporation tax management, digital documents, automatic reminders, task trackers, and report generators.

Corporation Tax Software

The best accountancy software solutions should always include corporation tax software. This allows accountants to file important corporation tax submissions such as CT600, iXBRL computations and accounts, in a fast and efficient manner, removing much of the complications associated with corporate tax returns.

Like with most accountancy software, corporate tax software integration is always important, allowing accountants to integrate with other important software (such as Practice Management) for more streamlined processes.

Accounts Production Software

Working on annual accounts is a core component of any accountancy work, so having intuitive accounts production software is a great investment. This software should integrate with all other types of accountancy software, allowing for seamless integrated between different tax return accounts (e.g. corporation tax, self-assessment tax, practice management tax) and bookkeeping software like Xero and QuickBooks.

Simply put, accounts production software saves an accountant an invaluable amount of time by making their account production tasks faster and more efficient. For example, you can easily import sole-trader accounts into self-assessment software to save the hassle of constantly re-entering data.

Making Tax Digital Software

While Making Tax Digital (MTD) has yet to launch, it marks the beginning of a new era of tax administration in the UK. Eventually, all tax returns will be filed digitally to HRMC, while individuals and organisations must keep digital records of their accounts.

Therefore, accountancy software must now become compliant with Making Tax Digital for accountants to file returns online for their clients. MTD software should be able to easily integrate into current software to ensure it’s ready for MTD going live.