Every business owner, large or small, knows that managing finances can be a daunting task. It’s often time-consuming and complex, particularly for small and medium enterprises (SMEs) with limited resources. As the business landscape becomes more digital, keeping your company’s finances in check has become a lot easier, thanks to a variety of intuitive accountancy apps. These applications can help streamline your business operations, from managing expenses and incomes to forecasting future financial situations.
The United Kingdom’s HM Revenue and Customs (HMRC) had planned a significant digital overhaul with the Making Tax Digital (MTD) initiative, but this has been delayed until at least April 2026. While this might be a disappointment for some, it also provides software developers
with a unique opportunity to refine their tools and services further. Importantly, small businesses, sole traders, and landlords stand to gain the most from these digital changes and should not wait to digitise their taxes and accounts.
The following are five standout accountancy apps that could revolutionise the way your SME handles its finances. All the apps listed here are compatible with Xero, a renowned accounting software used globally, and can integrate seamlessly with a variety of other platforms.
- Dext Prepare
Do away with manual data entry with Dext Prepare. This game-changing app allows you to simply snap a picture of an invoice or receipt, and the rest is taken care of. Dext uses AI to extract the required information and automatically inputs it into your accounting software. It can learn from your past entries and allows you to set supplier rules for streamlined posting.
Hammock, designed by landlords for landlords, is perfect if you have multiple rental properties. This unique app connects with your bank, tracks income and expenditure for each tenant, and provides vital insights such as profit and loss statements, loan-to-value (LTV) ratios, rental yields, and occupancy rates. What’s more, Hammock updates your tax statement and even includes user-friendly features like linking with Google Street View and Right Move valuations.
- Dext Commerce
If you run an ecommerce business, Dext Commerce is your new best friend. It collates data from multiple sales channels and payment platforms, like Amazon, eBay, Shopify, Etsy, Stripe, and PayPal, providing you a comprehensive overview of your transactions. Plus, it ensures all your entries are MTD-compliant when posting to other accounting software.
Cash flow forecasting can often feel like gazing into a crystal ball, but Float makes the process far more scientific. This clever app allows you to build scenarios, like hiring a new employee, and projects the financial impact. It provides forecasts for up to three years and links to your accounting software for real-time insights.
Cut the chaos of financial document approvals with ApprovalMax. This smart app streamlines the approval process, eliminating the need for paper and email approvals, making it easier to keep track of spending. It provides an automated approval workflow with multi-layered approvals and safeguards sensitive data.
Business owners who have been delaying the digitization of their finances should consider
these tools a call to action. The initial setup might seem overwhelming, but your accountant can provide guidance to build confidence in the process. Embracing these digital tools can simplify your operations, making financial management smoother and more efficient.
Cara Mastrodomenico of Monahans, a firm that specialises in Digital Accountancy and the transition towards it, echoes this sentiment: “For the businesses that are coming late to the digital party – invariably those who have been too busy to think about it, which is great for them because it means their business is running well – they may well be scared about what the changes mean for them. It can become very daunting and there’s a temptation to bury your head in the sand. But it’s not as hard as it looks. Talk to your accountant as soon as possible, because they will be able to expertly guide you, and give you confidence. And once the changes are made, life will be a lot easier.”
Navigating the world of finance can be simpler and less stressful with the right tools at your disposal. As businesses continue to embrace the digital age, these five game-changing accountancy apps can help SMEs streamline their operations, making managing finances a breeze. And remember, while the MTD implementation might be delayed, now is the perfect time.