Thankfully, many more UK small businesses (reportedly more than half) are now using accounting software. If you’re an accountant, having your sole trader, freelancer and small private landlord clients using accounting software makes your life far easier.
It saves you lots of time, especially when you’ve a mountain of Self Assessment tax returns to get through. Accounting software enables you to process more returns for more clients in less time, which is great for your bottom line. It also saves you from having to forensically work your way through shoebox after shoebox crammed full of receipts to work out client tax expenses. Who enjoys that?
Using accounting software can help small business owners in so many ways, yet still almost half of small UK businesses don’t use accounting software, because they’re scared of it or they don’t realise how it could benefit them. So, what can you do to change their minds?
Tell them how simple accounting software is to use…
A key reason why many people fear accounting software is they believe it will be difficult to use and you need to be a bookkeeper or accountant. Not true, obviously. Popular accounting software aimed at small businesses is remarkably easy to use, with many features automated and bank accounts easily linked, so, actually, very little knowledge or effort is required. Simple really.
Show them how easy accounting software is…
The best available accounting software has been created to make life as easy as possible for users, plus it usually comes with user support should your clients have any queries. As part of your onboarding process, you could quickly take your new clients through the basics of the accounting software that you use, so that they know what they need to know.
Tell them how cheap accounting software is…
Small businesses are mindful of cost – for very good reason. They don’t want to put any unnecessary pressure on their cash flow. But they might think they need to spend hundreds of pounds a year on accounting software, when it could amount to less than a tenner a month, which they can claim as a tax expense anyway. You might even be able to get a discount for signing up your clients in bulk to an annual subscription, which could bring the cost right down.
Tell them how accounting software could save them time…
A key selling point for accounting software is it makes it quicker and easier to take care of a range of tasks, which potentially offer small-business owners time savings. Good accounting software will reduce the time your clients spend managing tax and finance, while saving you time, too. A classic win-win. With accurate, up-to-date accounting software records, in just seconds, you and your clients can get an accurate idea of their cash flow and the financial health of their business.
Explain the cost-savings accounting software provides…
Time is money, so the less time your clients have to spend on bookkeeping, the better. That allows them to dedicate more of their valuable time to tasks that provide their business with greater value. And accounting software connected to your clients’ bank and credit card accounts means income and costs are automatically recorded, which can help your clients to ensure they’re claiming for all of their tax expenses.
Accounting software can make invoicing much easier…
Accounting software can come with a free customisable invoicing facility, giving small business owners the ability to quickly create and send their own-branded invoices wherever they are. They can also effortlessly keep track of invoice payments and send reminders when due or overdue. In this way, accounting software can also help to ensure healthy cash flow.
Explain how accounting software could boost their success…
Accounting software that’s updated with accurate figures also enables you and your clients to better understand how their business is performing, as well as where and when they need to cut costs or increase sales. In just a few clicks, they can create financial summary reports that can enable them to make better business decisions. No longer are they operating blind when it comes to their finances. Sound organisation and management of expenses and cash flow are critical to success in business.
Tell them about Making Tax Digital…
And with Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) scheduled for its first phase of introduction from 6 April 2026, getting your freelancer, sole trader and landlord clients to start using accounting software makes more sense than ever. In the Autumn 2024 Budget, the government announced that MTDITSA will be extended to sole traders and landlords with income over £20,000 by the end of this Parliament.
Coconut can help your clients to better manage their business. It’s also ideal for small private landlords. To find out why Coconut is the perfect time and money-saving accounting solution for even your smallest clients, book a short demo. Alternatively, sign up for a free Coconut Partner Account and explore Coconut in your own time.
