Compliance
Cloud accounting & bookkeeping: Two-Page Guide
Xero and QuickBooks set up and kept current, so your numbers are always to hand, and your records are ready for Making Tax Digital and e-invoicing.
Looking for help with this? See our cloud accounting and bookkeeping service →
Why businesses move to the cloud
- Bank feeds bring in every transaction daily, so there is no manual entry from statements.
- A live view of cash, what customers owe and what you owe, on your phone.
- Invoices with payment links so customers can pay by card or bank transfer in one click.
- Receipts captured by photo with apps such as Dext or Hubdoc, so there is no shoebox at the year end.
- Shared access for you and your accountant, so questions are answered on the same numbers, in real time.
- Compliant by design with Making Tax Digital for VAT and Income Tax.
The rules driving digital records
| Requirement | Who and when |
|---|---|
| Making Tax Digital for VAT | All VAT-registered businesses must keep digital records and file VAT returns through compatible software |
| Making Tax Digital for Income Tax | Sole traders and landlords with qualifying income over £50,000 from April 2026; £30,000 from April 2027; £20,000 from April 2028 |
| E-invoicing | Mandatory electronic invoicing for VAT invoices between businesses from April 2029 |
| VAT registration | Required once taxable turnover exceeds £90,000 in any rolling 12 months |
Xero or QuickBooks?
We support both. Each is HMRC-recognised and connects to hundreds of apps. The right choice depends on your sector, the apps you already use, payroll, the number of users, and whether you trade in other currencies. We recommend one after looking at how your business actually works.
Our set-up process
- Review your current records, systems and the way money flows through the business.
- Choose the software and add-on apps that fit, with a plan and timetable.
- Configure the chart of accounts, VAT settings, tracking categories and user access.
- Connect bank feeds, payment providers, receipt capture and payroll.
- Migrate opening balances and history, then check everything reconciles.
- Train you and your team, and stay on hand for questions.
Ongoing bookkeeping: choose your level
| Level | What you do | What we do | Suits |
|---|---|---|---|
| Review | Keep the books day to day | Review monthly or quarterly, correct errors, file VAT | Owners who like to keep control |
| Shared | Raise invoices and capture receipts | Reconcile the bank, run payroll and VAT | Most small businesses |
| Managed | Approve payments | Everything, including monthly management accounts | Growing businesses without an in-house finance team |
Why it pays Clean, reconciled books make year-end accounts faster and cheaper, reduce the risk of VAT errors and give lenders confidence. They also mean you can make decisions on this month’s numbers, not last year’s.
How King Street can help
See your numbers in real time
We set up Xero or QuickBooks properly, connect your bank and apps, and keep your books current. You deal directly with Doug Murphy or Stephen Thompson, not a rotating account team.
Email us about this guide 0161 835 23233rd Floor, 82 King Street, Manchester M2 4WQ
This guide is general information, not advice on your circumstances. Please speak to us before acting.
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