Cloud accounting software is an online bookkeeping system that lets a business record income and expenses, send invoices and view up-to-date financial information from any device with an internet connection.
Why it matters for compliance
Popular platforms such as Xero, QuickBooks and FreeAgent connect directly to bank feeds and are Making Tax Digital compatible, which is now a requirement for VAT-registered businesses and is being extended to income tax for many sole traders and landlords.
Tax rules depend on individual circumstances and can change. This glossary is general information rather than personalised tax advice.