Not sure whether accounting software is worth it for your business? This guide helps you decide, based on your size, whether you're VAT registered, and Making Tax Digital.
Published July 2026 · Updated July 2026
You probably need accounting software if you: are VAT registered (or about to be), send invoices, claim expenses, have more than a handful of transactions a month, or find yourself unsure how much profit you're making or how much tax to set aside. The more of these apply, the stronger the case.
Making Tax Digital requires digital records and filing through software. It already applies to all VAT-registered businesses, and it's expanding to sole traders and landlords by income level from April 2026. For anyone in scope, compatible software isn't just convenient, it's how you stay compliant.
Even a side hustle benefits: software keeps your records tidy so Self Assessment is quick, and shows whether the numbers actually work. If you're below the reporting thresholds and happy with a simple approach, a free budgeting tool may be enough to start, and you can upgrade as you grow.
Not once Making Tax Digital applies to you, as it requires digital records kept in software with a digital link to HMRC. Below that, a spreadsheet can work but is more error-prone.
Berified offers a free budgeting tier to start with, and paid plans from £10/month once you need full accounting, VAT and reports.
Ideally before you're busy, setting up early means clean records from day one rather than a painful catch-up later.
This guide is general information for UK small business owners, not accounting, tax or legal advice. Rules, rates and thresholds reflect 2026/27 and change over time; always check the linked official source or a qualified adviser for your situation.