Which Bank Developed Accounting Software is Best?

As a small business owner, you might find your business's accounting and tax return arduous, beyond your abilities, or you may not have the time for it. It's not uncommon, but finding the right solution to this challenge can be the difference between a time and money-saving solution and replacing one challenge with another.

Can you get a bank to do your taxes? Some UK banks now provide accounting and tax return software, but can these services save you time and money, and which is best? We find out in this article.

What is Accounting and Tax Return Software?

Accounting and tax return software helps businesses manage their finances and prepare tax returns. They automate many accounting and tax preparation tasks, making staying on top of your business's finances more manageable. It's essential to be aware that not all of these services include the same features, so it's beneficial to compare them before making a decision.

Should you Choose Accountancy Software Over an Accountant?

Whether your business uses an accountant and accountancy software will depend on your unique needs and financial situation. It may be beneficial to explore both options.

Choosing an Accountant

An accountant provides many benefits, including expertise in tax laws and financial regulations, personalised advice and recommendations, and the ability to handle complex financial situations. However, accountants can be costly and unnecessary for smaller businesses with more straightforward financial tasks.

Choosing Accountancy Software

Accountancy software can be a more cost-effective and efficient solution than hiring an accountant. You'll benefit from automated processes for bookkeeping, invoicing, and tax calculations, making it a significant timesaver, and by removing the human element, it's less prone to mistakes.

However, accountancy software has some limitations. Most notably, it can't provide personalised advice, and some more complex financial situations might be beyond its capabilities.

Of course, you can use accountancy software and hire an accountant. You can use the software to handle your day-to-day financial activities and contact an accountant if you need additional help.

What are the Benefits of Accounting and Tax Return Software?

The benefits of using accounting and tax return software include the following:

• Save time

  Accounting software automates many finance management and tax preparation tasks, freeing you to focus on other aspects of your business.

• Improved accuracy

  Because you're automating many of your financial management and tax preparation tasks, you reduce the risk of human error. Your accounting and tax return software can help reduce mistakes and improve accuracy.

• Cost savings

  By providing free software, UK banks are helping business owners reduce expenses.

Which Banks Offer Accounting and Tax Return Software?

A large number of banks offer accounting and tax return software. Some banks may only make their services available if you bank with them, and some offer their services for free. We've compiled a list of some of the best accounting and tax return software banks provide, including a comparison, to help you make an informed choice.

Anna +Taxes

Anna +Taxes is an accounting solution from Anna, the bank specialising in working with small businesses. It fully integrates into their banking environment and can also be used with other banks to help you calculate income, expenses, VAT and more. It even reminds you when your tax deadline is approaching, saving you from unnecessary fines.

Anna +Taxes was built with ordinary people in mind, not accountants, meaning it's for people busy making their business successful rather than those with finance qualifications. Because of this, it's designed to save you time, removing a time-consuming task from your busy schedule.

It's a paid service, with monthly prices starting at £24 + VAT, making it a considerably cheaper alternative to an accountant.

Tide Accounting

Another bank focusing on small businesses is Tide. Tide Accounting is designed to automate your small business accounting, doing the time-consuming manual admin work for you. It fully integrates into your Tide bank account and works with your Government Gateway account to ensure you can do stress-free bookkeeping and VAT returns. Because VAT submissions through Tide Accounting are Making Tax Digital (MTD) recognised, you can submit them directly to HMRC via your Tide account.

Tide Accounting tackles two big tasks; VAT returns and Self Assessments, making it ideal for small businesses and sole traders. Like Anna +Taxes, as an automated solution that integrates into your Tide bank, you reduce the risk of human error, reducing some of the challenges associated with bookkeeping.

Tide Accounting is also a paid service, but as it's in the early stages and features are still being added, it's currently free until 31st May 2023, after which it will cost just £6.99 + VAT a month.

How Anna +Taxes and Tide Accounting Compare

Anna +Taxes and Tide Accounting include features that any small business would find valuable and ultimately time and money-saving, but how do they compare? We've created the following comparison table to show how these services square up.

What Other Accounting Solutions are Available?

Many UK banks offer accounting solutions, some developed in-house and others off-the-shelf solutions. Even high street banks such as NatWest and Royal Bank of Scotland offer access to FreeAgent, a third-party accounting software. These services aren't limited to challenger banks and FinTechs. You can view more of the features these banks offer and more by visiting our business bank accounts page.

Can you Get a Bank to do Your Taxes?

In short, yes, you can. If you're a small business owner needing help with accounting and tax return preparation, these options may be the solution you need. Both Anna and Tide offer practical solutions to the challenges of bookkeeping and VAT returns, with other banks providing comparable solutions.

By automating many of the tasks involved in financial management and tax preparation, this software can help you save time, improve accuracy, and reduce your expenses.

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Jon Cole-Dalton