A wide range of bookkeeping systems is available to businesses. Clients often ask the team at Spicer & Co Chartered Accountants to recommend a software platform. Our advice is … Xero. This is especially true now that Making Tax Digital has expanded to cover income tax.

Why we recommend Xero

Xero is built for the cloud, which means you can access your financial information anytime, anywhere. Whether you’re a sole trader, landlord or a limited company, having real-time visibility over your finances is enormously helpful when making business decisions.

Online bookkeeping systems offer advantages over traditional desktop software. There’s no need for manual backups, software updates or being tied to one device. Everything is live, secure and accessible.

Compared with other providers, Xero offers distinct benefits:

• Unlimited users.Unlike competitors that restrict access by pricing tier, Xero allows unlimited users across all plans, facilitating better collaboration with team members and accountants.
• User-friendly interface.Xero has a more intuitive dashboard and easy navigation.
• Superior bank reconciliation and feeds.Xero features automated, reliable bank feeds that sync daily, enabling fast and efficient transaction reconciliation.
• Strong reporting. Financial reporting may be customised as needed.
• App integration. Xero integrates with over 1,000 third-party applications in its marketplace, providing a great opportunity to make the most of the software for your business.

Xero for Making Tax Digital

Making Tax Digital for Income Tax is changing how many sole traders and landlords manage their finances. The first phase is now live (as of 6 April 2026), involving those with qualifying turnover and/or rental income over £50,000pa.

Does this include you? Instead of submitting one annual tax return, you’ll soon need to keep digital records and submit quarterly updates to HMRC.

Xero is fully compatible with MTD requirements, making it much easier to:

• Keep accurate digital records.
• Categorise income and expenses in real time.
• Submit information directly to HMRC through compliant integrations.

Ease of use

‘One of the biggest advantages of Xero is how easy it is to use,’ says Shivani, a trainee Chartered Accountant with Spicer & Co, Chartered Accountants in Dunstable. ‘Many clients have little or no bookkeeping experience; however, they quickly feel confident using the platform.

‘As our accounting firm is a Xero Platinum Partner, we can access your data in real time, which means we can work together much more efficiently. This ongoing visibility often leads to better decision-making and fewer surprises.’

A future-proof choice

With regulatory changes like MTD and the increasing move towards digital processes, choosing the right bookkeeping software is extremely important.

‘Xero consistently strikes the right balance between usability, compliance and scalability,’ explains Shivani. ‘It’s a solution we trust for our clients as it meets their current requirements and can evolve with them.

‘We can work effectively with your existing software system, however if you decide to change to Xero, we offer a free switching service, which most accountants usually charge for.’