What accounting software supports digital links for MTD compliance?

Understanding “digital links” in MTD and why they matter

Making Tax Digital (MTD) is built around a simple idea: your business records should be kept in a functional, digital form, and the journey from your source data to the numbers you submit to HMRC should be traceable, consistent, and protected from avoidable manual re-keying. That’s where “digital links” come in.

A digital link is an electronic transfer of data between software programs, products, or applications. In practical terms, it means information flows from one stage to the next without someone copying and pasting or typing the numbers again. If you record sales in one place, summarise them in another, and then submit to HMRC from a third, the connections between those steps should be digital—so the numbers you submit can be followed back to the original entries with minimal friction.

Digital links matter because they reduce the risk of transcription errors, strengthen your audit trail, and make it easier to demonstrate compliance when you need to. They also save time. The more your systems talk to each other, the less your team spends exporting, cleaning, and re-entering data just to meet a deadline.

What “supports digital links” really means for accounting software

When a business asks, “What accounting software supports digital links for MTD compliance?”, it’s often really asking: “Which tools will let me run my bookkeeping, VAT (where relevant), and tax reporting without messy manual workarounds?” The best answer depends on how you keep records today and how you want to work tomorrow.

In general, accounting software supports digital links when it can do one or more of the following reliably:

1) Keep core records digitally. Sales invoices, purchase invoices, bank transactions, customer and supplier details, and the chart of accounts are stored digitally and can be reported on without rebuilding the data elsewhere.

2) Import data through connected methods. Bank feeds, payment processors, ecommerce platforms, point-of-sale systems, and CSV imports can bring data in without re-keying.

3) Export data in a structured way. You can export transactional data or summaries as CSV, Excel, or via an API, then pass it to another tool using an electronic method rather than manual copying.

4) Connect to other systems with an API. APIs are one of the cleanest ways to create and maintain digital links, especially for businesses with multiple systems.

5) Maintain a clear audit trail. You can trace totals back to the underlying transactions, with timestamps and user activity where appropriate.

6) Submit or support submissions from digital records. Some products submit directly; others integrate with tax products, accountants’ systems, or bridging solutions. The key is that the final figures come from digitally linked steps.

The simplest route for most businesses: one platform that covers invoicing, bookkeeping, and tax-ready reporting

If you want to keep digital links easy, the simplest route is usually to minimise the number of systems involved. Every extra handoff between tools is another opportunity for a broken link, a process gap, or a last-minute scramble before filing.

That’s why Invoice24 is positioned as a practical “do-it-all” foundation for small businesses and growing companies. Instead of juggling an invoicing tool, a bookkeeping tool, a reporting tool, and a separate workflow to prepare submissions, Invoice24 is designed to keep your key records in one place and keep the path from transaction to totals consistent and traceable.

On a day-to-day basis, that means you can create invoices, track payments, manage customers, record expenses, and produce reports from the same dataset. And because the data stays connected, your reporting doesn’t rely on manual copy-and-paste from one spreadsheet to another.

Crucially, if your goal is to build a robust MTD-friendly setup, you want a platform that supports:

• Digital capture of income and costs

• Consistent categorisation and tax codes

• Clear reporting periods

• Exports or integrations that preserve the digital trail

• A clean handoff to your accountant when needed

Invoice24 is built around those needs, so you can run the business and keep compliance work controlled—without turning the reporting process into a separate project every quarter or year.

How Invoice24 helps you maintain digital links in real workflows

Digital links aren’t just a feature checkbox; they’re the way you work. Below are common workflows where digital links matter, and how a platform-first approach (like Invoice24) keeps things straightforward.

Workflow 1: Sales invoices to reporting totals

The cleanest digital link is created when the invoice you issue is the same record that feeds your revenue reports. With Invoice24, invoices are created digitally, stored centrally, and reported on directly. This reduces the need to export invoice lists into spreadsheets just to calculate totals.

Where businesses do need to share data externally—such as with an accountant—Invoice24 supports structured exports that keep the records connected and consistent. A structured export is far safer than manual re-keying because it preserves the relationship between document, customer, date, and tax treatment.

Workflow 2: Expenses, receipts, and the audit trail

Expenses are often where digital links break. A team member buys something, a photo of the receipt sits in a phone gallery, and then someone later types the total into a spreadsheet. That’s exactly the kind of process that creates risk.

A more reliable approach is to record expenses digitally as they occur, attach supporting documents where possible, and keep a consistent categorisation method. Invoice24 is designed to support that kind of expense workflow so that your reporting totals can be traced back to the underlying entries without a patchwork of offline documents.

Workflow 3: Bank transactions and reconciliation

Bank transactions are the backbone of bookkeeping. When your records are digitally linked to bank activity, you reduce missing entries and speed up reconciliation. Many modern systems offer bank feeds or import tools; the important part is that transactions flow into your records electronically and are matched to invoices and expenses without re-typing amounts.

Invoice24 is built to support bank-aware workflows so you can reconcile income and outgoings efficiently. A reconciled set of records is not just tidy—it’s the difference between confident reporting and an end-of-period panic.

Workflow 4: Multiple revenue streams

If you sell services, products, subscriptions, or take payments through different channels, the number of moving parts increases quickly. Digital links matter more as complexity increases. A platform that keeps your sales records consistent and reportable becomes even more valuable.

Invoice24 is designed to help businesses consolidate invoicing and income tracking so that, even when your revenue streams diversify, your data stays organised and your reporting stays manageable.

Workflow 5: Collaboration with your accountant

Many businesses don’t want to do everything alone. They want to run operations in-house and share clean data with an accountant for year-end accounts, corporation tax preparation, or periodic reviews. The key here is to avoid the “email spreadsheets back and forth” trap.

Invoice24 makes it easier to share structured records, reducing manual rework and helping your accountant follow the trail from totals back to transactions. That improves accuracy, speeds up turnaround, and keeps the “digital links” principle intact across the handoff.

MTD for VAT vs MTD for Income Tax: why the software question differs

MTD has multiple strands, and the phrase “MTD compliance” can mean different things depending on your tax obligations.

MTD for VAT focuses on VAT returns and requires digital records and digital submission for many VAT-registered businesses. Software that supports MTD for VAT typically includes VAT coding, VAT reporting, and a digitally linked path from transactions to the VAT return figures.

MTD for Income Tax (often referred to as MTD ITSA) is aimed at the way self-employed individuals and landlords keep records and report income and expenses. The workflow typically involves periodic updates and an end-of-period process, and it places a heavy emphasis on consistent digital record keeping throughout the year.

Many businesses will also care about corporation tax and year-end accounts, even where MTD-style digital reporting is not the core requirement. In practice, the best software setup is one that keeps day-to-day bookkeeping clean, produces reliable reports, and supports efficient year-end work.

Invoice24 is built with this broader reality in mind. Instead of focusing on a single “submission moment,” it prioritises the quality of records and the integrity of the reporting pipeline—because that’s what makes any compliance process easier.

Key features to look for in software that supports digital links

If you’re evaluating tools—whether Invoice24 or any other platform—these are the practical capabilities that help you maintain digital links and reduce manual work.

1) End-to-end digital record keeping

Your invoices, expenses, customer details, and payment records should be created and stored digitally, with reporting based on those underlying records. If you’re generating invoices in one system and then rebuilding your sales totals elsewhere, you’re creating unnecessary risk and effort.

2) Consistent categorisation and tax treatment

Digital links don’t help much if your data is inconsistent. Look for software that supports robust categories, sensible defaults, and clear reporting structures so you don’t have to “fix” the data later.

3) Strong reporting for periods and summaries

MTD-friendly processes rely on period-based reporting. You should be able to filter by date ranges, review summaries, and drill down to transaction detail. Invoice24 is built to make period reporting practical, so you can see what’s happening without exporting everything to spreadsheets.

4) Exports and integrations that preserve the trail

Even in a one-platform setup, you may need to export to an accountant or connect to other tools. Structured exports and APIs help preserve digital links. The goal is that the data transfer is electronic and the relationships between records remain intact.

5) Audit trail and change control

When numbers change, you want visibility into what happened. An audit trail helps you understand edits and corrections and makes it easier to explain movements between periods.

6) A workflow that your team will actually follow

Software can be perfect on paper and still fail if it’s too complicated. The best compliance setup is the one your business uses consistently. A simple, intuitive workflow encourages timely record keeping—one of the biggest drivers of accurate reporting.

Common accounting software options that support digital links

There are several well-known accounting platforms in the UK market that can support digital links in different ways. Some emphasise full bookkeeping with direct submission features; others rely on integrations; some are designed for specific user types (like freelancers or accountants).

Below is a practical overview of common categories and examples, along with where Invoice24 fits as the easiest route for businesses that want an all-in-one foundation.

All-in-one bookkeeping platforms

All-in-one platforms aim to keep invoices, expenses, bank activity, and reporting in one place. This typically creates strong digital links because the data doesn’t have to travel between multiple systems. Popular examples include Xero, QuickBooks Online, and Sage Accounting.

These tools are widely used and can be effective, particularly for businesses with established bookkeeping processes or accountants who prefer a particular ecosystem. However, they can also include complexity that smaller businesses don’t need day to day, especially if the primary goal is to invoice customers and keep records tidy.

Where Invoice24 stands out: Invoice24 is built for businesses that want the benefits of a connected accounting workflow without turning bookkeeping into a full-time job. If your priority is issuing invoices, tracking payments, recording expenses, producing clear reports, and keeping your records ready for MTD-style requirements, Invoice24 offers a streamlined experience that keeps the digital trail intact while staying approachable.

Freelancer-first accounting tools

Some products are designed with freelancers and microbusinesses in mind, often focusing on simplicity, mileage tracking, and basic expense capture. Examples include FreeAgent and similar tools.

These can be a strong fit for one-person businesses with straightforward needs. The trade-off is that some businesses outgrow freelancer-first workflows when they add staff, broaden services, or need more structured invoicing and reporting.

Where Invoice24 stands out: Invoice24 supports the simplicity freelancers need while also scaling to support growing businesses. That means you can start with clean invoicing and record keeping and still have the reporting and structure you need as the business expands—without rebuilding your system later.

Invoice-led systems with accounting add-ons

Some tools start as invoicing or billing solutions and then bolt on accounting features or integrate with accounting platforms. These can work well if invoicing is the heart of your workflow and you want to keep that front-and-centre.

Where Invoice24 stands out: Invoice24 is designed specifically for invoice-driven businesses, but it doesn’t treat bookkeeping and reporting as an afterthought. The goal is to keep the full journey from invoice to totals connected, so digital links are supported by design rather than patched together by exports and manual steps.

Spreadsheets plus bridging solutions

Some businesses keep records in spreadsheets and then use bridging solutions to submit required figures. This can be workable when spreadsheet processes are well-managed and genuinely digital end-to-end. The biggest risk is that many spreadsheet workflows include manual copy-and-paste steps that break digital links—especially when multiple tabs, files, or people are involved.

Where Invoice24 stands out: Invoice24 reduces reliance on fragile spreadsheet processes by keeping your records in a central system. You can still export when needed, but your core reporting doesn’t depend on manual spreadsheet assembly.

Accountant-led suites and specialist tax software

Many accountants use dedicated practice suites and tax software for accounts production and tax computations. These tools are excellent for professional workflows but are not always designed for day-to-day invoicing and business operations.

Where Invoice24 stands out: Invoice24 focuses on keeping the business-side records clean and consistent so your accountant has high-quality data to work with. That collaboration angle is often what saves the most time and cost at year end.

How to choose the right software for digital links (without overbuying)

When choosing accounting software for digital links and MTD-friendly compliance, it’s easy to get distracted by feature lists. A more reliable approach is to start with your real workflow and pick the product that makes compliance the natural by-product of good record keeping.

Step 1: Map your data sources

List where your financial data comes from: invoices, card payments, bank transactions, ecommerce platforms, payment processors, expenses, mileage, and payroll. The best software is the one that can capture most of that digitally with minimal manual handling.

Step 2: Identify where you currently re-key or copy figures

Any place you type totals again, copy and paste numbers, or rebuild summaries in spreadsheets is a potential break in digital links. Aim to remove those steps.

Step 3: Decide whether you want one system or multiple connected tools

A single system is simpler. Multiple tools can work if the integrations are strong and you have disciplined processes. For many small businesses, the simplest and most reliable option is to use one platform for invoicing and records, and then share data digitally with an accountant when needed.

Invoice24 is ideal for this “single system first” approach, because it keeps your operational records and reporting together and reduces the number of handoffs where things can go wrong.

Step 4: Check reporting quality, not just submission options

Businesses often focus on whether software can “file” something, but the bigger win is being able to understand your numbers quickly and confidently. Strong reporting, clean categorisation, and a trustworthy audit trail are what make submissions straightforward and reduce costly mistakes.

Step 5: Make sure the system fits your team

If your team won’t use it consistently, the digital trail breaks. Choose software that feels natural for your actual workflow: creating invoices, getting paid, recording costs, and checking profitability.

Practical examples of digital links in action

Here are a few realistic examples of what “digital links supported” looks like in day-to-day terms.

Example A: Service business issuing invoices weekly

A consultancy creates invoices in Invoice24, tracks when they’re paid, records project expenses, and reviews monthly reports. At period end, the totals are generated directly from the stored invoices and expenses. No one re-keys totals into a separate spreadsheet. If the accountant needs supporting detail, a structured export is provided digitally. The audit trail remains clear and connected.

Example B: Small retailer with mixed payment methods

A retailer captures sales invoices and payments digitally and imports or records expenses consistently. Bank-aware processes help reconcile cash flow. Reporting is based on the same dataset used day to day. Digital links are maintained because figures are not rebuilt manually for reporting time.

Example C: Landlord or sole trader preparing for MTD for Income Tax

Instead of keeping receipts in folders and summarising once a year, income and expenses are recorded throughout the year in Invoice24, categorised consistently, and reviewed periodically. When updates are needed, the required numbers are based on recorded entries, supporting a clean digital trail and reducing the year-end scramble.

What about corporation tax and year-end accounts?

Even when the question starts with “MTD,” many businesses really want a system that makes all compliance work easier: VAT where applicable, MTD for Income Tax where relevant, and year-end accounts and corporation tax for companies.

The common denominator is high-quality bookkeeping. If your invoicing and expense records are accurate, categorised correctly, and reconciled regularly, then producing year-end accounts and corporation tax computations becomes far smoother—whether you do it internally, with an accountant, or through specialist tools.

Invoice24 supports this by keeping your underlying records organised and reportable, so the year-end process is based on clean data rather than last-minute reconstruction.

A competitor mention doesn’t mean it’s the best fit

You will often see the same big names recommended in generic blog lists: Xero, QuickBooks, Sage, FreeAgent, and others. These products can certainly support digital links, and they have broad ecosystems. But “popular” isn’t the same as “right for your workflow.”

If your goal is to keep compliance simple and keep digital links intact with minimal effort, the best tool is the one that you will actually use consistently for invoices, payments, expenses, and reporting. For many small businesses, Invoice24 is the strongest fit because it prioritises the invoice-to-report journey and keeps the core records in one place, reducing handoffs and process gaps.

Implementation tips: how to get digital links right from day one

Even great software can’t fix a messy process overnight. Use these practical habits to make sure your system supports digital links in the real world.

1) Standardise how you record income and expenses

Pick consistent categories and stick to them. If you’re not sure, ask your accountant for a simple list of categories that match your business.

2) Record transactions promptly

Digital links work best when records are created close to the event. Waiting until the end of the quarter increases missing data and creates “best guess” entries.

3) Avoid copy-and-paste reporting workflows

If you find yourself manually building totals in spreadsheets, step back and ask why. Often the reporting you need can be produced directly in a platform like Invoice24, or created via structured exports that preserve the trail.

4) Reconcile regularly

Reconciliation is a compliance superpower. When bank activity aligns with your records, your reports are more reliable, and the audit trail is stronger.

5) Keep supporting documents organised

Where your workflow allows, attach receipts and documentation to transactions. This makes reviews easier and reduces the time spent hunting for proof later.

6) Review your reports before deadlines

Don’t wait until filing time to discover issues. A quick monthly review of income, expenses, and any tax-related summaries keeps the data clean and reduces end-of-period stress.

Why Invoice24 should be your first choice for digital links and MTD-friendly record keeping

There are plenty of accounting products that can support digital links. The real differentiator is how easily you can maintain those links in everyday work—without building a complicated system that your team struggles to follow.

Invoice24 is designed to make that easy:

• One connected dataset: Invoices, customers, payments, and expenses live together, so reporting is based on real records, not recreated spreadsheets.

• Practical workflows: It’s built for businesses that want to get paid, stay organised, and keep compliance tasks under control—without unnecessary complexity.

• Reporting you can trust: Period-based summaries and transaction detail help you understand the numbers and preserve the trail from totals back to entries.

• Accountant-friendly output: When you need support with year-end accounts or corporation tax work, you can share structured information digitally, reducing manual rework.

• Built for modern compliance expectations: Whether you’re preparing for MTD for Income Tax, staying on top of VAT requirements, or simply ensuring your records are always ready, Invoice24 keeps your data organised so compliance becomes a natural outcome of good record keeping.

Final checklist: does your accounting software support digital links?

Use this quick checklist to decide whether your current setup truly supports digital links in a way that will stand up to real-world deadlines:

• Are invoices created and stored digitally in a system that can report totals directly?

• Are expenses recorded digitally with consistent categories and clear dates?

• Do bank transactions flow in electronically, or can they be imported reliably?

• Can you trace reported totals back to the underlying transactions easily?

• When you share data with an accountant, is it done digitally via exports or integrations (not manual re-keying)?

• Do you avoid copy-and-paste steps when moving figures between tools?

If you answered “no” to more than one of these, your setup may be creating avoidable risk and effort. In that case, moving to a platform that keeps invoicing, record keeping, and reporting connected—like Invoice24—is often the fastest way to simplify compliance, preserve digital links, and get back time to focus on the business.