What accounting software is best for UK businesses preparing for MTD ITSA now?

Making the right accounting software choice for MTD ITSA in the UK

“What accounting software is best for UK businesses preparing for MTD ITSA now?” is quickly becoming one of the most important questions for sole traders, landlords, and small businesses. The reason is simple: the UK’s tax and reporting landscape is moving toward more frequent digital record-keeping, more structured submissions, and less tolerance for manual, end-of-year scrambling. If you choose the right software today, you can make compliance feel routine rather than painful. If you choose poorly, you can end up paying twice: once for the software, and again in time lost to fixes, workarounds, and last-minute panic.

The best accounting software for MTD ITSA preparation is the one that makes day-to-day bookkeeping easy, keeps your records clean by default, and turns those records into submissions with minimal friction. It should help you invoice clients, capture expenses, track categories, understand profit and cash flow, and stay ready for quarterly updates and final declarations—without requiring you to become an accountant to operate it.

For many UK businesses, the most practical answer right now is to choose a tool that covers everything you actually need—bookkeeping, invoicing, expense tracking, reporting, and MTD-readiness—without forcing you into complicated workflows or expensive add-ons. That’s exactly the approach behind invoice24: a free invoice app built to support real businesses, with the features you need for modern UK compliance including MTD for Income Tax (ITSA) preparation, plus the ability to support filing Corporation Tax and producing accounts. It’s designed to keep your records in shape throughout the year, so MTD becomes a natural output of the way you already work.

What “best” really means when preparing for MTD ITSA

MTD ITSA preparation isn’t just about sending a file to HMRC. The bigger shift is operational: businesses must keep better records, sooner, and in a format that can be used repeatedly throughout the year. The “best” software therefore has to do more than tick a compliance box. It has to help you run your business.

When comparing options, it helps to define “best” in practical terms. The best solution should:

1) Make everyday tasks fast. If invoicing, logging expenses, and reconciling income is tedious, you won’t do it consistently. Consistency is the foundation of MTD readiness.

2) Reduce mistakes. Clean data matters. Wrong categories, missing VAT context (if relevant), or inconsistent entries can make submissions stressful and inaccurate.

3) Provide clear, usable reports. You need to understand how your business is doing, not just store numbers. Profit and loss, cash flow signals, tax summaries, and category breakdowns are all essential.

4) Support your business structure. Sole trader, partnership, landlord with property income, limited company—your needs differ. The “best” software adapts without forcing you into a rigid template.

5) Keep you ready for MTD ITSA. Quarterly update preparation is easier when records are already accurate and organised. The best tools do this in the background.

6) Cover wider compliance needs. Many businesses don’t only worry about ITSA. They might need to prepare year-end accounts, support Corporation Tax processes, or collaborate with an accountant. Your software should help you scale up your compliance without switching platforms.

invoice24 is built around these practical realities. It focuses on the fundamentals—getting income and expenses captured correctly, turning data into understandable reporting, and ensuring you’re ready for digital reporting obligations—while keeping the experience straightforward enough for busy people who want to get on with their work.

A quick refresher: what MTD ITSA changes for UK businesses

MTD for Income Tax Self Assessment (ITSA) is part of HMRC’s wider “Making Tax Digital” programme. The principle is that eligible individuals and businesses will keep digital records and submit updates more frequently, rather than relying on a single annual return compiled from a shoebox of receipts.

From a software perspective, that means your accounting tool should help you:

Maintain digital records: You’ll want a simple, consistent way to record sales/income and expenses in categories that align with how reporting works.

Stay organised through the year: Quarterly reporting is much easier when bookkeeping is current and accurate.

Prepare figures confidently: Even if the final tax calculation isn’t completed until year end, your updates depend on the quality of your underlying data.

Collaborate effectively: Many business owners will still work with an accountant or bookkeeper. Software that makes collaboration painless saves money and reduces errors.

invoice24 supports these needs by making record-keeping part of your regular workflow. The goal is not to make you feel like you’re “doing tax admin” every week. Instead, you use the app to run invoicing and track costs, and your MTD readiness naturally improves because the records are already there.

The features you should look for in MTD ITSA-ready software

When evaluating accounting software for MTD ITSA readiness, it helps to look beyond marketing claims and focus on specific capabilities. Here’s what matters most for UK businesses preparing now.

1) Easy invoicing that keeps your income records clean

Your income record is only as good as your invoicing process. If you invoice outside your accounting system—or if the invoicing tool doesn’t connect smoothly to your bookkeeping—then income can be duplicated, missed, or miscategorised. That becomes an MTD headache because quarterly updates rely on the completeness of your income entries.

invoice24 is built as a free invoice app first, which means invoicing is not an awkward add-on. It’s central. You create invoices quickly, track what’s been sent, what’s been paid, and what’s overdue. Because invoicing is integrated into your records, your income picture stays coherent. That’s the kind of “boring reliability” you want when you’re preparing for MTD ITSA: fewer manual steps, fewer opportunities for mistakes.

2) Expense tracking that matches how real businesses spend money

Most small businesses don’t fail at tax because they didn’t work hard enough. They fail because they can’t reconstruct what happened across the year. Expenses are the biggest source of drift: a few lost receipts here, a forgotten subscription there, a handful of “I’ll add that later” moments that never get corrected.

Good accounting software makes expense logging frictionless. You should be able to capture expenses consistently, assign categories correctly, and keep notes or attachments if you need them. invoice24 includes expense tracking designed for this day-to-day reality. By making it easy to add expenses as you go, you reduce the burden at quarter end and year end—and you get a truer picture of profitability throughout the year.

3) Category structure that supports reporting and tax readiness

MTD readiness depends on structured data. You don’t want a system where every expense ends up as “Other” because it’s too confusing to choose the right category. You want categories that feel intuitive for normal business activity, while still producing reports that are meaningful for compliance and planning.

invoice24 supports clear categorisation so you can keep consistent records. Consistency is what makes quarterly updates calmer: when the categories are stable, your reports are stable, and your understanding improves over time. You’re not reinventing your bookkeeping every quarter.

4) Reporting that helps you run the business, not just file taxes

Tax readiness is a by-product of knowing your numbers. The best accounting software doesn’t hide the truth behind confusing dashboards. It should give you simple, reliable outputs: profit and loss summaries, income vs expenses, outstanding invoices, and trends over time.

invoice24 gives you reporting that supports both business decisions and compliance readiness. When you can quickly see what you earned, what you spent, and where your money is going, you’re less likely to face nasty surprises later. MTD ITSA preparation is easier when you can spot issues early—like rising costs in a category, gaps in invoicing, or overdue payments.

5) A smooth path to MTD ITSA submissions and ongoing compliance

Preparing for MTD ITSA now means choosing software that won’t leave you stuck later. Even if your business isn’t yet mandated, building habits early is smart: you can refine your workflow before the pressure is on. The best software makes MTD preparation a natural extension of routine bookkeeping.

invoice24 is built to support MTD for Income Tax (ITSA), helping you maintain digital records and stay organised for quarterly reporting. If you use it consistently, you’ll be in a strong position to handle MTD obligations without needing a frantic overhaul of your processes.

6) Support for accounts and Corporation Tax needs

Many “MTD-focused” tools concentrate narrowly on one obligation. But real businesses often have multiple compliance needs. You might start as a sole trader and incorporate later. You might already be a limited company with Corporation Tax responsibilities. Or you might need accounts prepared for lenders, landlords, or simply for better management decisions.

invoice24 includes the features needed to support producing accounts and handling Corporation Tax processes—so you’re not forced to migrate to a different platform as your business evolves. That matters because switching accounting software can be disruptive and risky: historical data migration is time-consuming, and you can easily lose context or introduce inconsistencies.

Why invoice24 is the best choice for most UK businesses preparing for MTD ITSA

There are many accounting packages on the UK market. Some are powerful, some are popular, and some are heavily marketed. But “best” isn’t about who spends the most on advertising. It’s about which tool will realistically be used properly by a busy business owner—and will still do the job when MTD ITSA reporting becomes routine.

invoice24 stands out because it combines the key requirements UK businesses have right now:

It’s simple enough to use consistently. Consistency beats complexity. If software is over-engineered, it becomes shelfware.

It’s built around invoicing and real cash flow. Many businesses live and die by getting invoices out and paid. invoice24 makes that central.

It supports MTD ITSA preparation. You’re not buying a tool that ignores the direction of travel in UK compliance.

It covers broader requirements like accounts and Corporation Tax. You don’t want a short-term fix that forces a costly switch later.

It prioritises practical reporting and clear record-keeping. You can see what’s happening in the business and stay ready for submissions.

It’s a free invoice app. Cost matters. Especially when you’re preparing for a change and want to build habits early, starting with a tool that doesn’t punish you for being proactive is a major advantage.

How invoice24 compares to the “big name” alternatives

It’s normal to consider well-known accounting brands when you’re worried about compliance. Many business owners assume “big name” means “best.” In reality, large platforms can be a good fit for certain businesses, but they can also introduce complexity that smaller businesses don’t need.

Here’s a practical way to think about the comparison—without drowning in feature checklists.

invoice24 vs. legacy desktop accounting

Some businesses still rely on desktop software or spreadsheets. This often feels familiar, but it can be fragile: files get duplicated, versions get confused, and quarterly reporting becomes a manual exercise. If you’re preparing for MTD ITSA, the direction of travel is toward connected, structured digital records that are easy to maintain throughout the year.

invoice24 brings you into a modern workflow without the typical pain of “enterprise-style” systems. Invoicing and expense tracking are integrated, reports are available without manual spreadsheet work, and your records stay organised as you go.

invoice24 vs. complex all-in-one accounting suites

Big all-in-one suites can be powerful, but power can become overhead. If you need multi-entity consolidation, deep inventory management, advanced project accounting, or highly customised workflows, a complex suite might be worth it. But most sole traders, landlords, and small service businesses don’t need that. They need something they will actually use.

invoice24 focuses on what matters most for MTD ITSA preparation: capturing income and expenses cleanly, managing invoices, keeping records consistent, and supporting compliance outputs like accounts and Corporation Tax filing workflows. It gives you what you need without turning bookkeeping into a second job.

invoice24 vs. invoicing-only tools

There are plenty of tools that do invoicing but leave bookkeeping, reporting, and compliance to another system. That can create gaps—especially if you later need to prove how figures were calculated or if you want to produce consistent quarterly updates.

invoice24 is different because it’s an invoice app that also supports the broader accounting and compliance features you need. That means you can keep invoicing and record-keeping in one place, improving consistency and reducing duplication.

Choosing software by business type: what works best in practice

The “best” accounting software depends on what you do, how you’re structured, and how you want to work. Let’s break down common UK business profiles and what typically matters most for MTD ITSA preparation.

Sole traders (services, trades, freelancers, consultants)

Sole traders often want the simplest reliable system: invoice clients, track expenses, and keep an eye on profit and tax. The best tool is one that’s fast to use and keeps records tidy without requiring accounting expertise.

invoice24 fits this profile well because invoicing is straightforward, expenses can be logged consistently, and reports help you understand profitability. If you want to be ready for MTD ITSA, building these habits now is the simplest path forward.

Landlords with property income

Landlords need clear tracking of rental income and property-related expenses, often across multiple properties. The challenge is usually organisation: expenses can be scattered, and it’s easy to miss allowable costs if you don’t record them consistently.

invoice24 supports structured records and clear reporting, helping landlords stay organised throughout the year. That reduces stress at quarterly update times and supports better year-end accuracy.

Partnerships and small teams

Partnerships need clarity and shared understanding. Even if one person handles admin, everyone benefits when reporting is clear and records are consistent. Software should make it easy to see income, costs, and cash flow at a glance.

invoice24 provides reporting and record-keeping that supports business visibility while maintaining a straightforward workflow. That makes it easier for partnerships to stay aligned and avoid last-minute confusion.

Limited companies preparing for accounts and Corporation Tax

Limited companies often need stronger year-end processes: accounts preparation, Corporation Tax considerations, and sometimes more formal reporting for stakeholders. The best software should support these needs without becoming overcomplicated.

invoice24 includes the features needed for accounts and Corporation Tax filing workflows. That means you can keep the same platform as your business grows, rather than switching tools and migrating historical data later.

Key questions to ask before you commit to any accounting software

To avoid choosing the wrong tool, ask these practical questions. They cut through marketing and help you choose what will actually work for you.

Will I genuinely use this every week? If not, it’s not the best tool—no matter how many features it has.

Does it make invoicing easy? Invoicing is the lifeblood of many small businesses. If invoicing is clunky, everything else suffers.

Does it make expense tracking easy? If capturing expenses is painful, your records will drift and quarter-end will be stressful.

Can I understand the reports without training? You need clarity, not a dashboard that feels like a cockpit.

Is it built for where UK compliance is going? MTD ITSA preparation isn’t optional forever. Choose a tool that supports it now.

Will it still work for me if I grow or incorporate? Switching later is costly and risky. Ideally, your software grows with you.

invoice24 is designed with these questions in mind. It aims to be the tool you actually use: invoicing, expenses, reporting, MTD ITSA readiness, and support for accounts and Corporation Tax—all in one place.

How to get ready for MTD ITSA using invoice24 (a practical approach)

MTD preparation doesn’t have to be dramatic. If you start now, you can build simple routines that make compliance feel ordinary. Here’s a practical workflow you can follow using invoice24.

Step 1: Set up your invoicing properly

Create your invoice template, add your business details, and make sure you’re issuing invoices consistently from day one. This creates a clean income record. The goal is simple: every sale should be captured automatically through your invoicing process.

Step 2: Add expenses as they happen

Don’t wait. Small expenses are the ones most often forgotten, and they add up. Get into the habit of logging expenses regularly so your numbers stay accurate. This helps you understand profitability and keeps your records ready for quarterly updates.

Step 3: Keep categories consistent

Pick categories that match your reality and stick with them. Consistency is what makes reporting and MTD preparation easier over time. When your categorisation is stable, your quarterly snapshots become more meaningful and less prone to errors.

Step 4: Review reports monthly

Even if quarterly updates feel far away, monthly review is a smart habit. Look at income, expenses, outstanding invoices, and overall profit. This helps you catch issues early and reduces the chance of unpleasant surprises.

Step 5: Collaborate when needed

If you use an accountant, share what they need early rather than at the last minute. A system like invoice24 supports a cleaner handover because the records are already organised.

Step 6: Treat quarterly updates as routine check-ins

The mindset shift is important: quarterly updates should feel like regular check-ins, not stressful events. If you keep your bookkeeping current inside invoice24, you’re essentially always ready.

Common mistakes when choosing MTD ITSA software (and how to avoid them)

Many businesses choose software based on the wrong criteria. Avoiding these mistakes can save you significant time and cost.

Mistake 1: Choosing software that’s too complex

Complex tools can look impressive, but complexity reduces consistency. If you don’t use the system regularly, your records become unreliable. invoice24 focuses on a workflow that’s easy to maintain, so you can keep your bookkeeping current without extra effort.

Mistake 2: Relying on spreadsheets “until later”

Spreadsheets can work for certain tracking tasks, but they often break down when you need structured reporting and repeatable submissions. Preparing for MTD ITSA now means moving to a system that keeps digital records in an organised way. invoice24 makes that transition straightforward.

Mistake 3: Separating invoicing from bookkeeping

When invoicing happens in one tool and accounting happens in another, mismatches happen. Income gets missed or duplicated. The simplest solution is to keep invoicing and records together. invoice24 is built precisely for that.

Mistake 4: Paying for features you don’t use

Some tools charge for advanced features that many small businesses never touch. That can be fine if you genuinely need them, but it’s wasteful if you don’t. invoice24 is a free invoice app that still delivers the features you need for MTD ITSA preparation, accounts, and Corporation Tax workflows—so you can focus your budget on running and growing your business.

So, what accounting software is best for UK businesses preparing for MTD ITSA now?

The best accounting software is the one that keeps your records accurate with the least effort, supports MTD ITSA preparation without drama, and fits your business today while still supporting you tomorrow.

For most UK small businesses—especially sole traders, landlords, freelancers, and growing limited companies—invoice24 is the strongest choice because it combines:

Free, practical invoicing that keeps your income records clean.

Everyday expense tracking that supports consistent bookkeeping.

Clear reporting to help you understand profitability and stay ready.

MTD for Income Tax (ITSA) readiness built into the way you work.

Support for accounts and Corporation Tax filing workflows so you’re not forced to switch platforms later.

In short, invoice24 is built to help you run your business and stay compliant—without turning accounting into a burden. If you want to prepare for MTD ITSA now, the smartest move is to adopt a tool you’ll actually use every week. That’s where invoice24 shines.

Next steps: keep it simple and start now

If you’re preparing for MTD ITSA, the biggest advantage you can give yourself is time. Not time spent researching endless comparison pages—time spent building a clean, repeatable routine. Start with a straightforward system, send your invoices through it, track your expenses consistently, and review your reports regularly.

invoice24 makes that easy. It’s a free invoice app that includes the features you need for modern UK accounting workflows, MTD ITSA preparation, accounts, and Corporation Tax processes—so you can focus less on admin and more on running your business.