Written by Andrew Spillman-Hays, head of management accounts at Champion Accountants
The government’s Making Tax Digital (MTD) is midway through implementation and is now mandatory for VAT registered businesses. From 2026, MTD will also be phased into income tax self-assessments. But for many SMEs, digitisation represents a big, and sometimes unwelcome, change.
At Champion, we are advocates of utilising digital tools in accounting, and we are experts in supporting clients through the change.
Why switch to a digital accounting platform?
The benefits of digital accounting platforms are undeniable. Firstly, cloud-based platforms like Xero mean that you and your accountants can access your financial data from anywhere. Gone are the days of an accountant spending hours in a client’s office, pouring over paper trails in filing cabinets.
As working habits develop, software has evolved. You can pull reports, upload invoices, or check on your debt from work, home, or on the move – and your accountant can too. If you have an urgent question or unexpected issue, we’re likely to be able to support you immediately, from anywhere.
Processes are streamlined. There are multiple digital platforms to choose from, all competing for your business. Innovation is rapidly increasing the ease with which we can update, process, and analyse your financial data. Xero – our recommended platform – is supremely user friendly, and we are trained experts in the software. We’ll help you get the most out of your digital platform yourself, whether you own it or pass that responsibility to Champion.
Crucially, connecting all your financial data to one platform is the safest and most accurate way to get a true picture of your business position. Live P&L is ever-changing. Reports can be pulled. Debt can be tracked, and collection can be automated. While switching to digital may seem like a time-consuming exercise, the time and stress saved long-term far outweigh the initial outlay.
How to switch to a digital accounting platform
Many clients are daunted by the change, but the process can be simple with the support of your Champion Management Accounts & Bookkeeping team.
We’ll meet you where you are – whether that’s transferring an Excel sheet to a digital platform or moving you from one platform to another. Some clients like us to take on this process for them, while others prefer to lean on us for support while they do it themselves.
We recommend Move My Books, software developed specifically to streamline the transfer of data from one location to another. It is cheap and easy to make the switch when you use the right tools and call on experienced professionals.
Which platform to choose
With several digital accounting platforms on the market, it can be hard to know which to choose. Xero, Sage, QuickBooks, Tide, Moss, and Zoho are all competing for your business.
At Champion, we use Xero. We’re trained experts in the platform and skilled at extracting invaluable data through its many excellent features. Our clients have also found it to be the most user-friendly option, with a clear, bold design that’s easy to navigate.
What’s more, multiple useful pieces of software have been designed to plug into Xero. Dext, for example, is excellent for uploading purchase invoices, while Fathom is a fantastic tool for management accounts reporting. Linking these activities to your management accounts keeps all your financial data in one place, allowing you access to a real time, true picture of your position.
Using your digital accounting platform regularly
Habitual use is critical to the success of any digital accounting software, but it’s not for everyone. If you’d prefer not to commit to uploading invoices as they land, for example, Champion can take that on. For many clients, we receive invoices directly.
The biggest danger of letting your accounts stagnate is that you won’t be able to access a true picture of your financial health. Working with our Management Accounts team, you’ll establish processes that provide at-a-glance information about your finances, from quarterly reports, to tracking year on year trends or seasonal fluctuations. We can predict when, where, and how you might need to take action – spotting when shortfalls in cashflow could hit your business, and recommending proactive ways to tackle it before it becomes a problem.
There are also tangible financial benefits to updating as you go. For every purchase your company makes, you must have a receipt to claim back VAT. Snapping a picture of a receipt and uploading it instantly takes seconds, but it can save you a significant sum over the course of the year.
Our preferred approach is to meet monthly to discuss your management accounts. This gives us the opportunity to track trends, identify and respond to cashflow issues, and understand what’s on the horizon for you that we can be responsive to.
Talk to us about changing your digital accounting software
Financial software builds a holistic picture of your business’s health and supports us in steering your business towards success. If you’d like support in moving to a digital platform, get in touch on 0161 703 2500 or email info@championgroup.co.uk.
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