Who is VT bookkeeping software suitable for?
If you’re looking for an easy way to transition from spreadsheets to software, VT may be the answer.
VT Cash Book is a brilliant free option for people who keep cash basis accounts and still complete a Self Assessment Tax Return. You can also use the software to keep track of your personal finances. The paid-for version, VT Transaction+, is Making Tax Digital compatible.
I love this software because it’s fast and easy to use. Everything is editable. Other than deleting a transaction by mistake, there’s very little you can do wrong in it that can’t be corrected. [BUT, if you do delete a transaction, it’s gone forever – there’s no audit trail. No audit trail means any changes are absolute. There is no way of tracking what’s changed when a transaction is edited, and you can’t restore deleted transactions.]
Plus points:
- UK-based company
- Free for anyone who keeps cash basis accounts and is still in Self Assessment
- Making Tax Digital compatible (paid subscribers only)
- User-friendly
- Fast data entry (batch entry available in all versions and .csv import function in paid-for version)
- Super-fast reporting
- Date lock (prevents changes to completed accounting periods)
- Unlimited businesses per user
- Can be installed on more than one computer (but requires careful setup and use)
- A copy of the program data can be exported and sent to your accountant
Minus points:
- Can only do Making Tax Digital quarterly updates (not end-of-year MTD Tax Return)
- Not cloud-based (needs regular backing up)
- No bank feed (all transaction data has to be entered manually or by .csv import in paid-for version)
- No audit trail (doesn’t keep a record of transactions edited or deleted)
- No mobile phone app
- No in-software document storage
- Only works with Windows
Conclusion:
VT Cash Book is a brilliant free option for people who keep cash basis accounts and still complete a Self Assessment Tax Return. It’s best suited to a single user, with the data being stored on a single computer or laptop and backed up regularly.
The paid-for version, VT Transaction+, is an affordable option for people who keep accruals basis accounts or who need to comply with Making Tax Digital. It currently costs £108 a year including VAT (equivalent to £9/month). Sending quarterly updates to HMRC is quick and hassle-free.
Both VT software packages are a great place to start, particularly if you’re used to spreadsheets and have never used accounting software before. Mistakes are easily corrected, which helps the software feel very “forgiving” to beginners.
All versions of VT have a bank reconciliation feature, so you can check that all the transactions on your business bank statement have been included.
VT is Making Tax Digital compatible for Income Tax and VAT, although both MTD features need the paid-for licence. VT Transaction+ can only submit MTD for Income Tax quarterly updates, so you’ll need to use different software (or ask an accountant) to submit your end-of-year MTD Tax Return.
If you’re interested in using software to keep your bookkeeping records, please get in touch. I’m a qualified accountant, keen to help self-employed small business owners learn to handle their own bookkeeping with confidence. I offer one-to-one software setup and training packages for VT, Pandle, FreeAgent, Xero and others – group training options and ongoing support available.