MTD Ready Bookkeeping, Avoid the Last Minute Rush
- bes Accountancy Services
- Dec 31, 2025
- 6 min read
If you run a small or medium sized business in London, you already know the pattern. You deliver for customers all week, then bookkeeping gets pushed aside until HMRC deadlines force your hand. Making Tax Digital raises the stakes, because staying compliant is not only about filing on time. It is about keeping digital records consistently, then submitting through compatible software, on a repeatable schedule.
Bes Accountancy is a London based accounting company serving clients across the UK, with a strong London client base. Founded in 2020 and led by Besnik Vata, a certified bookkeeper with an AAT licence, our team supports busy owners with bookkeeping, VAT, payroll, and accounts preparation. We specialise in Xero and QuickBooks, helping you keep accurate records and avoid the monthly headache.
Need help now?
Call our director Besnik today: 07816264205
What MTD actually expects, in plain English
Most owners need to understand two areas.
MTD for VAT means your VAT return must be submitted through compatible software.
MTD for Income Tax is being phased in for sole traders and landlords, with quarterly updates and an end of period process.
Even if your start date is not immediate, the smartest move is to build the right routine early. The reason is simple. Catch up bookkeeping tends to collide with the busiest parts of the tax year, including Self Assessment season and common company year ends. Rushed tidying leads to errors, missed claims, and higher professional fees.
BES Accountancy point of view:
MTD readiness is a routine, not a software purchase. If the process is weak, the software cannot save it.
What you need in place on Xero or QuickBooks
Digital records and routine
Digital records are not complicated, but they must be consistent. In practice, this means every sale and expense is captured clearly, categorised properly, supported by evidence, and reconciled to the bank. If you only update records when a deadline is close, you rely on memory and guesswork, and that is where mistakes creep in.
To get MTD ready bookkeeping working in real life, most London business owners need three building blocks.
Clean categories that match how your business operates
Reliable capture of invoices, receipts, and expenses as you go
A monthly close that reconciles the bank and checks reports before filing
Both Xero and QuickBooks can support MTD style bookkeeping, but only if they are set up properly. A good setup does not only make compliance easier. It gives you clearer visibility on profit and cash flow, which supports better decisions.
Spreadsheets and digital links
Some businesses still use spreadsheets as part of their workflow. In certain cases, that can be workable, but digital link expectations matter. Manual copying and pasting creates avoidable risk, and it often becomes a hidden time cost. If you are moving from Excel to Xero or QuickBooks, the aim is to reduce manual steps and build a single, reliable record.
VAT and quarterly update basics
For VAT, the essentials are straightforward:
The correct VAT treatment is applied to sales and costs
Bank accounts are reconciled, so figures match reality
Records are clean before you press submit
For quarterly updates, the rhythm should be repeatable. Capture weekly, reconcile monthly, review quarterly, then submit with confidence.
Quick comparison, which route fits best
Xero - is often a strong fit for owners who want clear workflows, reporting, and a tidy monthly routine with specialist support.
QuickBooks - is often a strong fit for owners who want flexible bookkeeping, fast invoicing, and a well structured setup supported by an accountant.
Spreadsheet plus bridging - can work in narrow cases, but it often increases risk and admin because manual steps creep in.
Outsourced bookkeeping - is ideal when you want the books kept up to date without spending evenings on admin, with professional oversight for accuracy and compliance.
Want to dive deeper into accounting for businesses?
Read our related blog, where we provide a full guide to submitting your File Your Tax Return Early.
Common MTD mistakes that increase tax and admin costs
Most issues do not come from the rules. They come from weak processes.
Compliance risk - Weak record keeping can trigger HMRC questions, rejected submissions, and penalties risk. Manual transfers, unclear audit trails, and inconsistent routines increase the chance of problems.
Wrong numbers and rework - Messy books can lead to incorrect VAT, missed claims, and cash flow shocks. The knock on effect is time spent amending returns and paying extra professional fees to fix avoidable errors.
Time drain and stress - The most common causes of clean up work are familiar.
Unreconciled bank accounts
Uncategorised spending
Duplicate entries
Missing receipts and incomplete evidence
Growth impact - Unreliable numbers make it harder to plan, price confidently, and apply for finance. Even a profitable business can feel chaotic if the records are not trustworthy.
BES Accountancy uses tools like Xero and QuickBooks to help clients prepare property tax forecasts, file returns, and avoid costly surprises.
A simple MTD ready process for owners and directors
Owners do not need more complexity. They need a system that runs in the background.
Set up once, then run it monthly
A proper setup includes correct VAT settings, sensible categories, bank feeds, receipt capture, and a monthly review that closes the period cleanly.
Here is a practical checklist you can start now:
Confirm your VAT status and how you will file through software
Check whether you are likely to fall into MTD for Income Tax, and plan ahead
Choose your route, Xero, QuickBooks, or supported hybrid
Set a cadence, weekly capture, monthly reconciliation, quarterly review
Book a call with Bes Accountancy to review your setup and fix issues before they compound
Contributor note from Besnik Vata, director of Bes Accountancy, a London based accounting company:
"When books are up to date monthly, you stop guessing. You can see profit, tax exposure, and cash flow early enough to act."
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Next steps, get MTD ready with Bes Accountancy
MTD readiness is a process, not a one off software switch. Mistakes create hidden costs through risk, rework, and clean up time. A low cost approach can cost more once you factor in corrections and stress.
If you want a clear plan, Bes Accountancy can review your bookkeeping, recommend the right route, set up Xero or QuickBooks properly, and keep you compliant with a monthly routine. We focus on availability, efficiency, and trust, so you always know where you stand.
Speak to a qualified accountant for tailored advice.
Call for a free quote: 07816264205 | Email for a free quote: Info@bestax.co.uk
FAQ:
What does MTD ready bookkeeping mean for a small business?
It means your records are digital, consistent, supported by evidence, and your submissions can be made through compatible software without last minute clean ups.
Do I have to use Xero or QuickBooks for MTD?
Not necessarily, but you do need a compatible method for submissions. Xero and QuickBooks are popular because they support day to day bookkeeping and reporting when configured properly.
Can I keep using Excel and still comply?
In some cases spreadsheets can be part of a workflow, but digital link expectations matter and manual copying increases risk. Many owners move away from Excel because it becomes too time consuming and error prone.
How often should I update my bookkeeping under MTD?
Weekly capture and monthly reconciliation is a practical baseline for most small businesses. It reduces errors, improves cash flow clarity, and makes quarterly updates far easier.
What can Bes Accountancy do if my books are already messy?
We can clean up historic records, correct categorisation and VAT treatment, set up Xero or QuickBooks properly, and implement a simple monthly routine so you stay compliant going forward.
About BES Accountancy
Founded in twenty twenty and based in London, BES Accountancy helps businesses and self employed professionals across the UK with bookkeeping, payroll, VAT, financial accounting, and accounts preparation for sole traders and partnerships. We work with Xero and QuickBooks and our values are availability, efficiency, trust.
Get a free quote by phone | Email Info@bestax.co.uk
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