For many sole traders and small business owners, reviewing their accounting system only happens when something forces the issue. For example, a number of sole traders are currently assessing whether their accounting software meets the requirements for Making Tax Digital for Income Tax.

However, even without regulatory changes, taking the time to review your accounting system can deliver real benefits. Choosing the right platform can save time, reduce the risk of errors and give you clearer visibility over your business’s finances.

Here are some practical points to keep in mind.

1. Identify Your Needs

Consider what you or your team deal with most frequently. Is it issuing invoices, recording expenses, monitoring cash flow, or perhaps managing stock or project work?

You may only require straightforward income and expense tracking. Alternatively, features such as invoice reminders, embedded payment links or job costing could be valuable.

It can be helpful to start by listing your everyday tasks before researching what different software packages can offer.

2. Consider Cost, but Think in Terms of Value

The lowest-cost option is not always the most useful if it slows down your workflow. A slightly higher monthly fee may be worthwhile if it saves you time and reduces admin.

Ease of use also adds significant value. Clear layouts, simple navigation and reliable support can make routine bookkeeping far less time-consuming.

3. Automation and Integrations

Modern accounting software can automate many repetitive jobs. For instance, importing bank transactions, sending invoice reminders and capturing receipt and invoice details can all be handled automatically.

If you use e-commerce platforms, job management tools or card payment providers, choosing software that integrates with them can save additional time by eliminating duplicate data entry.

4. Planning for Growth

If you expect your business to expand, think about whether the system can grow with you. Some entry-level tools are ideal for start-ups but become restrictive once staff, stock management or more complex invoicing are involved.

5. Plan for the Switch

Changing your accounting system can feel disruptive, but many platforms now offer setup wizards, data import functions and clear guidance, making the transition easier than you might imagine. Switching at the beginning of a new financial year can also help streamline the process.

Choosing the right accounting system is not only about compliance or day-to-day record-keeping — it’s an opportunity to simplify your operations and gain a better understanding of your business’s financial position.

If you would like support reviewing your current accounting system or would like recommendations tailored to your business, please feel free to contact us. We would be happy to help you!