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10 MTD Compatible Software Solutions for Accountants

Posted on 14 May 2025

Overview

The article presents a compelling overview of ten software solutions that are compatible with Making Tax Digital (MTD), designed to significantly enhance efficiency and compliance for accountants.

In today’s fast-paced accounting landscape, professionals face mounting challenges in managing client communications and regulatory demands. Solutions like Glasscubes, Sage, and Xero stand out by automating processes, which not only improves client interactions but also streamlines VAT management.

This automation leads to increased productivity, allowing accountants to meet evolving regulatory requirements with confidence. Embracing these tools is not just an option; it’s essential for staying ahead in the accounting sector.

By integrating such innovative software, accountants can visualise a future where compliance and efficiency go hand in hand, ultimately transforming their practise. The time to act is now—explore these solutions and elevate your accounting practise to new heights.

Key Highlights:

  • Glasscubes automates client communication and information gathering, improving engagement and compliance with GDPR.
  • Businesses using automated communication tools report a 40% increase in response rates and a 50% reduction in response times.
  • Sage offers comprehensive MTD compliance tools, including automated tax calculations and seamless integration with HMRC.
  • Xero is praised for its user-friendly design that simplifies VAT management and enhances client interactions.
  • Capium’s cloud-based platform allows for efficient management of customer information and boosts productivity through real-time reporting.
  • KashFlow simplifies VAT submissions and record management, enabling accountants to save time through automation.
  • Fonoa provides a tailored VAT solution with automated calculations and real-time reporting, enhancing productivity for financial professionals.
  • Avalara’s automation reduces errors in VAT submissions, facilitating smoother audits and increasing client trust.
  • Absolute Excel VAT Filer allows direct VAT submissions from Excel, streamlining the filing process for accountants.
  • Bishop Fleming emphasises the importance of selecting the right MTD compatible software to enhance operational efficiency and compliance.

Introduction

In the rapidly evolving world of accounting, the shift towards digital solutions has become imperative for firms aiming to enhance client engagement and streamline compliance with regulations like Making Tax Digital (MTD). This article explores a range of innovative software tools, including:

  1. Glasscubes
  2. Sage
  3. Xero
  4. Others

These tools are transforming the landscape of client communication and data management. By automating processes and facilitating real-time reporting, these solutions not only reduce administrative burdens but also significantly improve responsiveness and client satisfaction. As accountants adapt to the demands of a tech-savvy clientele, understanding the capabilities of these tools is crucial for maintaining a competitive edge and ensuring compliance in an increasingly complex regulatory environment.

Glasscubes: Automated Client Communication and Information Gathering

Glasscubes stands out as a premier solution for UK financial professionals, expertly designed to automate customer communication and streamline information collection. Its robust user portal enables the efficient gathering of personal tax, audit, and payroll data, effectively addressing the urgent need for meaningful engagement in today’s dynamic financial landscape. Key functionalities, including automated reminders and real-time reporting, significantly reduce the time accountants spend on follow-ups, allowing them to concentrate on more strategic tasks.

By centralising customer interactions, Glasscubes not only enhances engagement but also ensures compliance with GDPR regulations, making it an indispensable tool for accounting firms seeking to optimise workflows and elevate customer satisfaction. Recent statistics reveal that businesses utilising automated customer communication tools have witnessed a remarkable:

  1. 40% increase in response rates
  2. 50% reduction in response times

This underscores the efficacy of such solutions.

Moreover, case studies highlight the impact of Glasscubes’ real-time reporting capabilities, which empower organisations to monitor outstanding requests and manage workflows effectively. This feature guarantees that no request goes unanswered, fostering improved communication with clients. As Sage notes, “84% concur that as ‘digital natives’, potential workers from younger generations possess forward-thinking expectations, attitudes, and skills that must be acknowledged and supported by accounting organisations if they wish to attract them.” This statement emphasises the necessity of adapting to the evolving expectations of both clients and employees. In a continuously transforming accounting sector, embracing automation through tools like Glasscubes is essential for organisations striving to meet these progressive demands.

Sage: Comprehensive MTD Compliance and Reporting Tools

Sage provides a comprehensive suite of tools meticulously designed to ensure compliance with Making Tax Digital (MTD) regulations, including MTD compatible software, which makes it an indispensable resource for financial professionals. Its software integrates seamlessly with HMRC, facilitating efficient VAT reporting and return submissions. Key features include:

  • Automated tax calculations
  • Real-time updates

These features empower businesses to maintain precise records and optimise their reporting processes. This functionality is particularly crucial as 75% of financial professionals report an increase in client demands for financial management and technological support this year, underscoring the evolving role of these experts as trusted advisors.

Furthermore, with MTD compliance rates steadily rising among UK accountants, Sage stands out as a premier choice for those navigating the complexities of MTD, ensuring firms can enhance customer satisfaction while effectively using MTD compatible software to meet regulatory requirements. Notably, Glasscubes has reported:

  • A 50% reduction in customer response times
  • A 40% boost in customer engagement

This illustrates the overall effectiveness of MTD compliance tools. Its features, including automated reminders and real-time reporting, streamline information collection and improve communication, positioning it as a valuable complement to Sage’s offerings.

Additionally, Glasscubes delivers a secure, user-friendly platform that adheres to ISO27001 and GDPR standards, guaranteeing data protection and fostering trust. The latest updates for 2025 reinforce Sage’s commitment to providing robust regulatory tools, further solidifying its market position. As financial professionals increasingly collaborate with technologically savvy clients, the importance of effective MTD compatible software, such as Sage and Glasscubes, cannot be overstated.

Xero: User-Friendly MTD Software for VAT Management

Xero emerges as a premier solution for professionals navigating VAT under Making Tax Digital (MTD), thanks to its MTD compatible software that is distinguished by its intuitive design and user-friendly features. This MTD compatible software automates VAT calculations and submissions, ensuring strict compliance with HMRC regulations while significantly reducing the administrative burden on financial professionals. Key functionalities, including seamless bank reconciliation and efficient expense tracking, not only simplify the accounting process but also enhance customer interactions by delivering clear insights into financial data. Such clarity fosters improved decision-making and fortifies the relationship between financial professionals and their clients.

Moreover, user satisfaction data indicates that financial experts in the UK appreciate Xero’s ability to streamline their workflows, with many reporting increased productivity and stronger engagement with their customers. Notably, 45% of small business owners have expressed that their financial advisor has become more crucial to their business than ever, underscoring the vital role of user-friendly software like Xero in strengthening these relationships. Successful implementations of MTD compatible software, such as Xero, across various accounting firms have showcased its effectiveness in managing VAT, illustrating how user-friendly software can revolutionise the accounting landscape. Additionally, endorsements from financial professionals affirm Xero’s positive impact on customer interactions, further validating its efficiency. As Xero continues to enhance its features to meet MTD compliance and VAT management requirements for 2025, it remains a top choice for financial professionals aiming to elevate their service delivery with MTD compatible software.

To further optimise customer engagement, the integration of Glasscubes can significantly enhance workflow efficiency. Glasscubes provides automated communication and information-gathering tools that streamline the audit process, offering real-time visibility and automated reminders. This ensures timely data submission and reduces the manual effort required in customer interactions. By leveraging Glasscubes alongside Xero, financial professionals can establish a more organised communication system, transcending the chaos of multiple email threads and ultimately improving overall customer satisfaction.

Xero: User-Friendly VAT Management Software

Capium: Streamlined MTD Solutions for Accountants

Capium provides MTD compatible software as a robust solution for Making Tax Digital (MTD) compliance, featuring automated tax calculations and seamless submissions to HMRC. Its cloud-based platform empowers financial professionals to efficiently manage customer information, ensuring that records remain current and comply with MTD compatible software regulations. By leveraging real-time reporting and integrated workflows, Capium allows financial professionals to shift their focus from administrative tasks to advisory roles, significantly boosting productivity. Notably, 27% of respondents in recent surveys identified enhanced productivity as a key motivation for adopting cloud solutions, highlighting a growing trend among accounting professionals.

Furthermore, businesses utilising Capium have reported substantial improvements in their operational efficiency, demonstrating the platform’s effectiveness in streamlining accounting processes and enhancing customer engagement. In contrast, Glasscubes offers unique features that further elevate user engagement for financial professionals. With automated reminders and structured communication tools, Glasscubes ensures that no requests for information are duplicated, and all correspondence is systematically archived.

Users such as Sophie Montgomery from TaxAssist Accountants have reported an impressive 288 hours saved in just one tax season, underscoring the significant time savings achievable through effective software solutions. Additionally, companies leveraging Glasscubes experienced a 40% increase in customer response rates and a 50% reduction in response times, illustrating how its automated communication and real-time progress tracking can enhance engagement for financial professionals. This distinct approach complements the capabilities of Capium, delivering a comprehensive suite of tools for modern accounting practices.

KashFlow: Simplifying MTD Compliance for Accountants

KashFlow is expertly crafted as MTD compatible software to bolster MTD adherence for financial professionals, providing a suite of tools that simplify VAT submissions and meticulous record management. Its intuitive interface allows financial professionals to manage customer accounts with ease, ensuring that all essential data is accurately captured and reported. The platform’s automated notifications and updates significantly reduce the administrative burden, empowering companies to maintain compliance effortlessly.

In tandem with KashFlow, Glasscubes offers a robust solution designed to elevate customer engagement for accountants. With features such as real-time reporting, automated workflows, and secure file sharing, Glasscubes enhances information gathering and fosters collaboration with clients. The platform’s white-labelled client portal allows businesses to deliver a seamless experience, customised with their own branding, further solidifying client relationships. This capability is crucial for companies looking to strengthen their brand identity while providing exceptional service.

Glasscubes presents tiered pricing options:

  1. The Essential plan at £120 monthly
  2. The Professional plan at £180 monthly
  3. The Advantage plan at £360 monthly

Each plan includes varying levels of storage and support, ensuring that businesses can choose the option that best meets their requirements.

Recent statistics reveal that accountants utilising KashFlow can save an average of one hour per day through automation tools, highlighting the efficiency gains achievable with its implementation. Furthermore, Sophie Montgomery from TaxAssist Accountants reports an impressive 288 hours saved in a single tax season, underscoring the significant time reductions attainable with KashFlow.

Successful case studies demonstrate that businesses employing KashFlow have experienced remarkable improvements in adherence rates, attributed to its proactive features. Likewise, Glasscubes’ dedicated customer success manager ensures that firms maximise their use of the platform, offering user-friendly onboarding and ongoing support. Expert insights stress the necessity of continuous adaptation to new tools and regulations, and both KashFlow and Glasscubes emerge as essential resources in this context. By facilitating smooth VAT submissions and providing real-time updates, these solutions not only enhance operational efficiency but also aid financial professionals in effectively navigating the complexities of MTD regulations using MTD compatible software.

Accountant Utilizing KashFlow in a Modern Office

Fonoa: VAT Software Designed for MTD Compliance

Fonoa presents a tailored VAT solution that includes MTD compatible software, designed specifically for Making Tax Digital (MTD) compliance, empowering financial professionals to adeptly manage their clients’ VAT obligations. Key features include automated tax calculations that significantly minimise the risk of errors and streamline the filing process. With real-time reporting capabilities, Fonoa not only facilitates VAT return submissions directly to HMRC but also equips accountants with invaluable insights into their clients’ financial health.

Recent advancements in MTD compatible software, particularly Fonoa’s updates for VAT management in 2025, demonstrate that companies utilising MTD compatible software witness enhanced productivity. For example, businesses that benefited from automation reported reallocating saved time towards boosting productivity and personal development. This transition underscores the critical need for adopting efficient software solutions like MTD compatible software, which numerous accounting firms have successfully implemented to manage VAT responsibilities effectively.

Notably, users of Glasscubes, another tool within the accounting software ecosystem, reported saving an impressive 288 hours in a single tax season, alongside a 40% increase in customer response rates. Glasscubes enhances customer interaction through automated reminders, real-time visibility, and streamlined communication, highlighting the significant efficiency gains achievable with such software.

Statistics reveal a growing trend in the adoption of VAT compliance software across the UK, with many financial professionals emphasising the necessity of real-time reporting for maintaining adherence and boosting customer satisfaction. Fonoa’s updates for MTD compatible software in 2025 further enhance its functionality, ensuring that financial professionals can navigate the evolving regulatory landscape with assurance. Ultimately, Fonoa emerges as an essential tool for financial professionals aiming to optimise their VAT management processes, particularly when integrated with Glasscubes to maximise client engagement and streamline workflows.

Fonoa VAT Software in a Professional Office

Avalara: Tax Compliance Solutions for MTD Requirements

Avalara delivers a robust suite of tax adherence solutions meticulously designed to meet the demands of Making Tax Digital (MTD). By automating VAT calculations and filing processes, Avalara empowers financial professionals to submit precise reports to HMRC, eliminating the need for manual input. Key features include real-time data integration, ensuring that all financial information remains current, alongside powerful reporting tools that facilitate comprehensive analysis and regulatory tracking.

The impact of automation on error rates in VAT submissions is significant; companies utilising Avalara have reported a remarkable decrease in inaccuracies, leading to smoother audits and heightened client trust. Statistics reveal that nearly 80% of UK financial professionals have adopted some form of tax-related software, with many citing Avalara as a preferred choice due to its intuitive interface and dedicated support. Furthermore, almost all enterprises surveyed have adjusted their record management practises in response to the transition to MTD, underscoring the necessity for software like Avalara in adapting to these evolving requirements.

Successful implementations of Avalara across various accounting firms demonstrate its effectiveness in streamlining tax compliance processes. For instance, organisations that adopted Avalara experienced a 30% reduction in time spent on VAT returns, allowing financial professionals to focus on more strategic tasks. As MTD evolves, Avalara continues to enhance its solutions, ensuring that financial professionals remain compliant and efficient in their operations. The dedicated onboarding support provided by Avalara also assists accounting firms in optimising client communication and improving organisational efficiency.

Expert insights highlight the critical role of automated tax calculations in today’s fast-paced accounting environment, with numerous professionals praising the software for its reliability and user-friendliness. In summary, Avalara emerges as a premier option for financial professionals aiming to refine their tax compliance strategies while alleviating administrative burdens. Given the frustrations expressed by some businesses regarding the administrative load imposed by MTD, the adoption of MTD compatible software, such as Avalara, becomes increasingly essential.

Absolute Excel VAT Filer: Bridging Software for MTD Compliance

Absolute Excel VAT Filer serves as a vital bridging software that empowers financial professionals to submit VAT data directly from Excel to HMRC, ensuring compliance with Making Tax Digital (MTD) regulations. This tool is particularly advantageous for companies that prefer the familiarity of spreadsheet environments. Its straightforward setup and intuitive interface streamline the VAT return filing process, significantly enhancing efficiency for accountants.

The software’s design facilitates seamless integration with existing workflows, enabling users to drag and drop data into the system with ease. This capability not only simplifies submissions but also consolidates VAT history in one place, eliminating the need for multiple platforms. As a result, companies utilising Absolute Excel VAT Filer have reported improved productivity, especially when paired with Glasscubes, which amplifies client interaction through automated messaging and data collection tools.

Glasscubes presents a comprehensive solution that addresses common challenges faced by financial professionals, such as managing numerous email exchanges and ensuring timely responses from clients. With automated reminders and real-time progress tracking, accountants can adeptly handle queries while maintaining clear visibility of outstanding requests. This integration exemplifies how bridging software, including MTD compatible software, can enhance MTD compliance while providing a user-friendly experience, as case studies underscore the tool’s effectiveness in real-world applications. For example, firms already using QuickBooks have successfully integrated the QuickBooks Bridging Module, which complements the Absolute Excel VAT Filer by enabling secure data transfers into QuickBooks without incurring additional charges for active subscribers.

Accountants have lauded the Absolute Excel VAT Filer for its efficiency, with testimonials indicating a significant reduction in the time spent on VAT submissions. The software’s updates for MTD compliance in 2025 will incorporate enhancements to ensure that users remain aligned with regulatory requirements, solidifying its status as MTD compatible software essential for contemporary accounting practices. As Andrew Decker, Regulatory General Counsel at Sovos, remarked, if your turnover is under the VAT threshold of £85,000 and you haven’t registered for Making Tax Digital in time to file your next return, you can still utilise your existing VAT online account for that return only. By leveraging Excel-based solutions alongside Glasscubes, financial professionals can not only meet regulatory standards but also elevate their overall operational efficiency.

Bishop Fleming: Insights on MTD-Compatible Software Solutions

Bishop Fleming provides essential insights into MTD compatible software solutions, guiding financial professionals through the complexities of compliance. Their extensive evaluations of various software options highlight features that not only enhance operational efficiency but also ensure adherence to HMRC regulations. By outlining best practises for selecting MTD compatible software, Bishop Fleming empowers accountants to make informed decisions tailored to their specific operational needs. This guidance is particularly crucial as businesses increasingly adopt cloud accounting systems, which have been shown to attract five times more customers than traditional methods.

Furthermore, with the Big Four accounting companies surpassing $200 billion in revenue in 2023, the importance of selecting the right software has never been more pronounced. As Giles Mooney, Managing Director of PTP Ltd, aptly states, “The key message from this data is that anyone saying ‘one size will fit’ all is living in a dream and as advisers come up with solutions for those they assist, a range of options is going to be required.”

As financial professionals face evolving compliance demands, leveraging expert insights from Bishop Fleming can significantly impact software adoption and overall business performance. Additionally, investing in MTD compatible software can yield substantial time and cost savings, as evidenced by case studies on accounts payable automation, reinforcing the case for meticulous software selection.

Tools like Glasscubes exemplify this approach by streamlining engagement through automated communication and real-time progress tracking, reducing response times by 50% and enhancing interaction by 40%. With features such as unlimited information requests, secure file sharing, and user-friendly onboarding, Glasscubes elevates accounting firm efficiency and transforms client engagement, making it an essential consideration for professionals navigating the MTD landscape.

Gov.uk: Official Guidance on MTD-Compatible Software

Gov.uk provides essential guidance on MTD compatible software, serving as a vital resource for accountants in search of regulatory information. This guidance includes a comprehensive list of MTD compatible software solutions, detailing their functionalities and compliance capabilities. Notably, Glasscubes emerges as a standout option; firms utilising MTD compatible software have reported a remarkable 40% increase in client response rates and a 50% reduction in response times, highlighting the effectiveness of these tools in boosting productivity.

Users of Glasscubes have noted significant time savings, with one financial professional claiming to have saved 288 hours in a single tax season, attributed to its automated communication, information-gathering features, and real-time progress reports. By leveraging these resources, financial professionals can confidently select the appropriate tools, such as MTD compatible software, to meet MTD requirements, thereby minimising the risk of non-compliance and enhancing operational efficiency.

Testimonials from users underscore that dependable software not only streamlines processes but also cultivates trust with clients. As Olivia Martinez aptly states, “Behind every financial statement lies a narrative, and accountants are the storytellers of economic tales.”

As the landscape of MTD compliance continues to evolve, it is imperative to stay informed with Gov.uk’s latest guidance for successful implementation and ongoing adherence to regulatory standards.

MTD-Compatible Software in Action

Conclusion

The integration of digital solutions in accounting has become essential for firms striving to enhance client engagement and comply with regulations like Making Tax Digital (MTD). Tools such as Glasscubes, Sage, Xero, Capium, KashFlow, Fonoa, Avalara, and Absolute Excel VAT Filer each offer unique functionalities that streamline processes, automate tasks, and facilitate real-time reporting. These innovations not only alleviate administrative burdens but also significantly improve responsiveness, ultimately leading to increased client satisfaction.

The benefits of adopting these software solutions are clear. Firms utilising tools like Glasscubes have reported impressive metrics, such as:

  1. A 40% increase in client response rates
  2. A 50% reduction in response times

Additionally, the seamless integration of these tools with existing workflows allows accountants to focus on their advisory roles, enhancing their value to clients amidst rising demands for financial management and technology support. As the accounting landscape evolves, embracing such technologies is not just a competitive advantage; it is a necessity for firms aiming to thrive in a tech-savvy environment.

In conclusion, the shift towards digital accounting solutions is imperative in navigating the complexities of modern regulations and client expectations. By leveraging innovative software, firms can transform their operations, improve compliance, and foster stronger relationships with clients. As the industry continues to advance, staying informed and adaptable will be key to achieving sustained success in the realm of accounting.

About the Author:

Craig leads the Glasscubes Customer Success Department, with over 30 years experience in the field, helping accountancy firms achieve maximum success with collaborative technology.