Harnett Accontants

Harnett & Co | Chartered Accountants, Kingston upon Thames
Global House Business Centre 1 Ashley Avenue Epsom Surrey KT18 5AD
ICAEW Authorised Practice
Cloud Accounting Setup & Migration | Harnett & Co — Chartered Accountants Kingston upon Thames Skip to main content
Technology & Compliance

Cloud Accounting
that works for you

Move your finances to the cloud with confidence. We set up, migrate and manage your cloud accounting software so your records are always accurate, accessible and fully compliant with HMRC's Making Tax Digital requirements.

📞 01372253100
Xero Preferred Partner
MTD Compliant Setup
Data Migration Included
Training Provided
ICAEW Regulated
Why it matters

The right software changes how you run your business

Running a business on spreadsheets or outdated desktop software is a bit like navigating with a map from ten years ago. The information is there, but it is never quite up to date, it takes time to piece together and it gives you no real sense of where you stand right now.

Cloud accounting gives you a live picture of your finances at any moment. Your bank transactions feed in automatically, your invoices are tracked in real time and your VAT position is always clear. You spend less time on admin and more time on the decisions that actually grow your business.

For UK businesses, cloud accounting has also become a practical necessity. HMRC's Making Tax Digital programme requires digital record-keeping and digital submission for VAT and, from April 2026, for income tax too. We set everything up correctly from the start so you are ahead of those requirements, not scrambling to catch up.

Real-time visibility — see your profit, cash flow and outstanding invoices at a glance, any time of day
Automatic bank feeds — transactions pulled in daily so reconciliation takes minutes, not hours
MTD compliant from day one — VAT returns submitted directly to HMRC without you logging into any portal
No data loss on migration — we transfer your historical records accurately before switching anything live
Shared access with your accountant — we can see the same records you do, in real time, so queries get resolved faster
Scales as you grow — add users, connect apps and expand reporting as your business becomes more complex
What's included

Everything you need to move to the cloud

From choosing the right software to getting your team comfortable using it, we handle the entire transition and stay involved long after you are up and running.

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Software Setup & Configuration

We set up your chosen cloud platform from scratch, including your chart of accounts, VAT settings, invoice templates, user permissions and any integrations with your bank, payroll or ecommerce platform. Everything configured correctly before you go live.

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Data Migration

Switching from spreadsheets, Sage desktop, QuickBooks desktop or another system? We migrate your opening balances, customer and supplier records and historical transaction data accurately and cleanly, with no gaps in your financial history.

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Bank Feed Connection

We connect your business bank accounts and credit cards directly to your cloud software so transactions import automatically each day. This alone removes hours of manual data entry every month and keeps your reconciliation consistently up to date.

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MTD Compliance Setup

We register your business with HMRC as an MTD-enrolled taxpayer, link your software to HMRC's systems and test the connection with a real submission before handing over. You are fully compliant with Making Tax Digital requirements before anything goes live.

MTD Ready
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Training & Handover

Every new setup includes a practical training session so you and your team can handle day-to-day tasks confidently, from raising invoices and uploading receipts to running reports. We explain things in plain English, not accounting jargon.

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Dashboard & Reporting Setup

We configure your financial dashboard and set up the key reports that matter to your business, including profit and loss, cash flow summary and outstanding debtors. You always know where your business stands without having to dig through raw data.

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Third-Party App Integration

Cloud accounting becomes even more powerful when connected to the other tools your business uses. We set up integrations with Stripe, GoCardless, Shopify, PayPal, Dext and other apps to automate data flows and reduce manual work further.

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Ongoing Support & Management

Once you are live, we remain your accountant within the software. We can review your records regularly, fix any coding errors, advise on new features and ensure your software stays up to date with any changes to HMRC requirements or accounting standards.

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Construction Industry Setup

CIS-aware configuration for construction businesses, including correct treatment of the VAT domestic reverse charge within your cloud software. This is one of the most commonly misconfigured areas in cloud accounting and we get it right from the outset.

Construction
Software we work with

Which cloud platform is right for you?

We work with all the major cloud accounting platforms used by UK businesses. Here is an honest guide to each one so you can understand which is likely to suit your situation best.

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Xero
Our preferred platform

Xero is our first recommendation for most businesses. It was built as a cloud-first platform from the ground up, which shows in how well it works. The interface is clean and easy to use even if you have no accounting background, and it connects with over 1,000 third-party apps including Stripe, Shopify, Dext and GoCardless. Unlimited users on all plans makes it particularly good value as your team grows.

  • Unlimited users on all plans
  • Live bank feeds and automatic reconciliation
  • Over 1,000 app integrations
  • Strong MTD for VAT and Income Tax support
  • Intuitive for non-accountants

Best for: Most SMEs, growing businesses, service companies and those who work closely with an accountant.

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QuickBooks Online
Strong for reporting

QuickBooks is a solid choice for businesses that need detailed financial reporting and want payroll management in the same platform. The dashboard puts most key figures directly in front of you without hunting around, which suits business owners who want quick answers. It also offers strong VAT tools and integrates well with most UK banks.

  • Powerful, customisable financial reports
  • Payroll included in higher-tier plans
  • Clean, straightforward dashboard
  • Good mobile app for invoicing on the go
  • Strong UK tax compliance features

Best for: Businesses needing strong reporting, those who want payroll and accounting in one place, and first-time cloud accounting users.

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Sage Business Cloud
UK heritage

Sage has a long history in UK accountancy and its cloud offering works well for businesses that have used Sage desktop in the past and want to move online without changing their processes dramatically. It is particularly suited to businesses with more complex inventory or payroll requirements and those in manufacturing or retail. HMRC compliance and payroll support are genuine strengths.

  • Built-in payroll on most plans
  • Strong inventory management
  • Familiar to businesses coming from Sage 50
  • Good HMRC compliance and VAT tools
  • Dedicated UK support

Best for: Businesses migrating from Sage desktop, those with complex payroll needs, manufacturing and retail businesses.

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FreeAgent
Great for freelancers

FreeAgent is purpose-built for freelancers, sole traders and small limited companies. It is refreshingly easy to use and covers everything a smaller business needs, including invoicing, expense tracking, time tracking and VAT returns. It is free for business account holders at NatWest, Royal Bank of Scotland and Mettle, making it an excellent low-cost starting point for newer businesses.

  • Simple, approachable interface
  • Built-in time tracking and project management
  • Free for NatWest and RBS business account holders
  • Self Assessment and VAT returns covered
  • Designed specifically for smaller businesses

Best for: Sole traders, freelancers, contractors and very small limited companies who want simplicity without compromising compliance.

Making Tax Digital

Cloud accounting and MTD go hand in hand

Making Tax Digital is HMRC's programme to move the entire UK tax system online. For most businesses, the shift has already begun. MTD for VAT has required digital record-keeping and digital submission since April 2019, and all VAT-registered businesses have been included since April 2022.

The next phase brings income tax into scope. From April 2026, sole traders and landlords with qualifying gross income above £50,000 must keep digital records and submit quarterly income and expense updates to HMRC through approved software. The threshold drops to £30,000 in April 2027 and £20,000 in April 2028, meaning that most self-employed individuals and property landlords will eventually be included.

Cloud accounting software is the most practical and reliable way to meet these requirements. We are already preparing clients for the April 2026 deadline and would encourage anyone affected to start thinking about this now rather than leaving it to the last minute.

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Already preparing clients for April 2026 If your combined gross income from self-employment and property exceeded £50,000 in the 2024/25 tax year, MTD for Income Tax will apply to you from 6 April 2026. We can assess your position and get you set up in good time.
MTD rollout timeline
Live April 2019 — MTD for VAT (Phase 1) Digital records and MTD-compatible submission became mandatory for VAT-registered businesses above the £85,000 threshold.
Live April 2022 — MTD for VAT (All businesses) Extended to every VAT-registered business regardless of turnover. Digital links between records and submission software became mandatory.
3
Upcoming April 2026 — MTD for Income Tax Sole traders and landlords with qualifying gross income above £50,000 must submit quarterly updates digitally. Quarterly updates replace the single annual return.
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Upcoming April 2027 — MTD for Income Tax (extended) Threshold reduces to £30,000. A further reduction to £20,000 is planned for April 2028, bringing the majority of sole traders and landlords into scope.
How it works

Up and running in four simple steps

We keep the transition straightforward. Most clients are fully live within one to two weeks from the initial conversation.

1

Discovery call

We find out how you currently manage your finances, what software you use and what your goals are. No obligation, just an honest conversation.

2

Software recommendation

We recommend the right platform for your business type and budget, and send you a clear written proposal covering setup, migration and ongoing costs.

3

Setup and migration

We configure the software, migrate your data, connect your bank feeds, set up MTD compliance and test everything before going live.

4

Training and handover

We walk you through the software so you are confident with the day-to-day tasks, then stay involved as your accountant for ongoing support and compliance.

Why cloud accounting

What changes when you move to the cloud

The practical difference between cloud accounting and a traditional desktop setup is significant. It is not just about where the data is stored. It is about having information that is current, accessible and useful at every point in your working week.

Business owners who switch to cloud accounting consistently tell us the same things. They spend less time chasing receipts, they feel more in control of their cash position and they can answer questions about their business without having to wait for their accountant to produce a report.

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Less time on admin Automated bank feeds and receipt capture reduce manual data entry dramatically, freeing you to focus on running your business.
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Better business decisions Real-time profit and loss, cash flow and debtor reports give you the information you need to make confident decisions every day.
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Work from anywhere Your accounts are on your phone, your tablet and your laptop. Check your position in a client meeting, raise an invoice on site or approve a payment from home.
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Your data is always safe Automatic daily backups and bank-level encryption mean your financial records are far better protected than files on a single computer.
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Lower year-end costs Accurate, up-to-date records throughout the year reduce the time your accountant spends preparing year-end accounts, which reduces your bill.
Who we help

Cloud accounting for every type of business

We work with businesses of all sizes and sectors across West London and Surrey, from freelancers setting up their first cloud account to established companies migrating years of historical data.

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Sole Traders & Freelancers

Simple, affordable setup on Xero or FreeAgent so your invoicing, expenses and self-assessment records are always in order, without the complexity of a full business accounting package.

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Limited Companies

Full cloud setup integrated with your bookkeeping, payroll and year-end accounts. One joined-up service so your software, your records and your compliance all work together.

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Construction & Trades

CIS-aware cloud setup with correct configuration for the VAT domestic reverse charge, subcontractor payments and industry-specific reporting requirements.

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Retail & E-commerce

Multi-channel integration connecting your cloud software to Amazon, Shopify, eBay or your own website so sales data flows in automatically and stock is properly tracked.

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Property & Landlords

Cloud setup tailored for rental income tracking, property expense management and the MTD for Income Tax requirements that will affect landlords from April 2026 onwards.

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Professional Services

Time tracking, project profitability and client billing all connected to your cloud accounts so you always know which clients and projects are actually making you money.

Common questions

Cloud accounting questions, answered honestly

Cloud accounting means storing and managing your financial records online rather than on a desktop computer. Your data is accessible from any device, automatically backed up and updated in real time. For UK businesses, cloud accounting is now effectively essential because HMRC's Making Tax Digital programme requires digital record-keeping and digital submission of VAT returns, and from April 2026 income tax updates too. Cloud software is the most practical and reliable way to meet those requirements without adding complexity to your day.

The right platform depends on your business type, transaction volume and how you want to work. Xero is our preferred choice for most clients because it is intuitive, has unlimited users on all plans and integrates with over 1,000 third-party apps. QuickBooks works well for businesses that want strong reporting and payroll together. Sage suits businesses in manufacturing, retail or those already familiar with Sage. FreeAgent is an excellent, cost-effective choice for sole traders and freelancers. We assess your situation and make an honest recommendation before you commit to anything.

Most clients are up and running within one to two weeks. The timeline depends on how much historical data you want to migrate and the complexity of your existing records. We handle the entire process, including setting up your chart of accounts, configuring bank feeds, migrating your historical data and connecting any third-party apps you use. You do not need to do anything technical yourself, and your existing records stay accessible throughout the transition.

Yes. All the platforms we use employ bank-level encryption, multi-factor authentication and automatic daily backups. Your data is stored on secure, redundant servers and is far better protected than files sitting on a single laptop. Xero, QuickBooks and Sage are all fully GDPR-compliant and operate in accordance with UK data protection law. In practice, cloud storage is significantly more secure than most traditional desktop setups where data lives on one machine with no offsite backup.

Technically, you can use bridging software with a spreadsheet to comply with MTD for VAT, but this is a cumbersome workaround that becomes increasingly impractical as MTD expands. Cloud accounting is the proper solution. MTD for VAT requires digital record-keeping and digital submission for all VAT-registered businesses. MTD for Income Tax, which arrives in April 2026 for sole traders and landlords with income above £50,000, requires quarterly digital updates to HMRC. Cloud accounting software handles all of this automatically as part of your normal workflow.

Yes, although the start of a new financial year or VAT period is usually the cleanest time to switch. If you need to move mid-year, we carry over your opening balances accurately so there is no gap in your records. We also make sure any outstanding VAT returns or payroll records are correctly reflected in the new system before you go live. The transition is managed carefully to avoid any disruption to your normal business operations.

We include a practical handover session with every setup so you and your team can handle day-to-day tasks confidently, including raising invoices, uploading receipts and checking your dashboard. For clients who prefer to hand everything over to us, we can manage the software entirely on your behalf. Most business owners find that cloud software is far easier than traditional desktop packages after an initial orientation. If questions come up after the handover, we are always available to help.

Get started

Ready to move your finances to the cloud?

Get in touch for a no-obligation conversation. We will find out what you are currently using, recommend the right platform for your business and give you a clear, fixed-fee quote for setup, migration and ongoing support.

📞 01372253100