Xero, QuickBooks & Sage MTD Setup – Making Tax Digital Software Implementation

Choosing the Right Accounting Software for Making Tax Digital

When businesses begin preparing for Making Tax Digital, one of the first questions they ask is:

“Which software should we use?”

And more specifically:

Should we use Xero?
Is QuickBooks better?
Does Sage work with MTD?

The reality is — all three platforms are HMRC-recognised and fully capable of supporting MTD compliance.

But choosing the right one isn’t just about compliance.

It’s about how your business operates day-to-day.

Each platform has different strengths, automation capabilities, reporting tools, and usability features.

That’s why proper setup — not just software choice — determines whether your MTD transition feels smooth or stressful.

If you’ve been searching:

• Xero MTD VAT
  • QuickBooks MTD setup
  • Sage making tax digital

You’re likely trying to understand which system fits your business — and how to implement it correctly.

That’s exactly what we help with.

HMRC Compatibility — All Three Platforms Are Approved

Xero, QuickBooks, and Sage are all fully recognised by HMRC as compliant Making Tax Digital software providers.

This means they can:

• Maintain digital accounting records
  • Calculate VAT automatically
  • Generate VAT returns
  • Submit VAT filings directly to HMRC
  • Store digital audit trails

From a compliance standpoint, any of these platforms can meet MTD requirements — provided they are configured correctly.

Incorrect setup can still create submission issues, even on compliant software.

Xero MTD Setup — Cloud Accounting Built for Automation

Xero is one of the most popular cloud accounting platforms among UK small and mid-sized businesses.

Its interface is intuitive, making it particularly appealing to business owners who want visibility without deep accounting knowledge.

With Xero MTD VAT setup, businesses gain:

• Real-time financial dashboards
  • Automated bank feeds
  • VAT return generation
  • Digital receipt capture
  • App integrations

Because Xero is fully cloud-based, it allows business owners and accountants to collaborate live on financial data.

We configure Xero systems to ensure VAT schemes, chart structures, and reporting outputs align with HMRC requirements.

QuickBooks MTD Setup — Flexible & Scalable Reporting

QuickBooks is another leading platform used widely across sole traders, landlords, and limited companies.

It offers strong automation combined with customisable reporting tools.

With QuickBooks MTD setup, businesses benefit from:

• Automated VAT calculations
  • Expense categorisation tools
  • Invoice tracking
  • Profit and loss reporting
  • Digital submission capability

QuickBooks is particularly effective for businesses wanting structured reporting alongside simple day-to-day bookkeeping.

We implement QuickBooks environments that are fully MTD-ready — including VAT linking and digital submission testing.

Sage Making Tax Digital Setup — Traditional Strength Meets Digital Compliance

Sage has long been a trusted accounting solution in the UK — particularly among established businesses and finance teams.

Its MTD-compatible versions allow businesses to transition from desktop or legacy Sage systems into digital compliance frameworks.

With Sage making tax digital setup, businesses can:

• Maintain detailed financial ledgers
  • Generate VAT returns digitally
  • Submit filings to HMRC
  • Track departmental finances
  • Manage complex reporting structures

Sage is often preferred by businesses with more detailed accounting needs or internal finance departments.

We configure Sage systems to align with MTD reporting requirements while preserving legacy data structures where needed.

Software Selection — Which Platform Is Best for You?

Choosing between Xero, QuickBooks, and Sage isn’t about which is “best” universally — it’s about which is best for your business model.

We assess factors such as:

• Business size
  • Transaction volume
  • VAT complexity
  • Staff access needs
  • Reporting depth required
  • Industry sector
  • Integration requirements

For example:

• Sole traders often prefer Xero or QuickBooks
  • Retailers may benefit from QuickBooks integrations
  • Larger firms may prefer Sage reporting depth

Our recommendations are tailored — not generic.

Migrating From Spreadsheets or Legacy Systems

Many businesses moving into MTD still operate using spreadsheets or outdated accounting platforms.

Migrating into Xero, QuickBooks, or Sage requires structured data transfer.

This includes:

• Customer records
  • Supplier accounts
  • VAT balances
  • Opening trial balances
  • Historical transactions

We manage full migration processes to ensure financial continuity and compliance accuracy.

VAT Linking — Connecting Software to HMRC

Regardless of which platform you choose, VAT linking is essential.

This creates the digital bridge allowing VAT returns to be submitted directly to HMRC.

The process includes:

• HMRC authorisation
  • API connection activation
  • VAT number validation
  • Submission pathway testing

Without VAT linking, even compliant software cannot submit returns.

We complete this process as part of every setup.

Bank Feed Integration — Automating Financial Data

All three platforms support bank feed integration — allowing transactions to flow automatically into accounting systems.

This enables businesses to:

• Track income instantly
  • Capture expenses quickly
  • Reduce manual data entry
  • Improve bookkeeping accuracy

Automated bank feeds are one of the biggest time-saving advantages of modern MTD software.

Receipt Capture & Expense Digitisation

Modern accounting platforms allow receipt uploads via mobile apps.

This enables businesses to:

• Photograph receipts
  • Store digital copies
  • Match costs to transactions
  • Maintain audit trails

Digital documentation strengthens compliance — particularly for VAT expense claims.

The MTD Software Setup Process — From Selection to Submission

Implementing Xero, QuickBooks, or Sage for Making Tax Digital isn’t just about opening an account and starting bookkeeping.

Proper setup ensures your software works correctly, reports accurately, and submits to HMRC without errors.

Our setup process begins with confirming which platform best suits your business structure and reporting needs.

Once selected, we configure the system environment.

This includes:

• Business profile setup
  • Financial year configuration
  • VAT scheme alignment
  • Chart of accounts structuring
  • Invoice template creation
  • Expense categories mapping

These structural foundations ensure your bookkeeping feeds accurate data into tax reporting.

VAT Linking & Digital Submission Activation

Once your software environment is configured, we establish the digital link with HMRC.

This stage enables VAT returns to be submitted directly through Xero, QuickBooks, or Sage.

The linking process includes:

• HMRC MTD authorisation
  • Secure API connection
  • VAT number validation
  • Submission pathway testing

We run live submission tests to ensure filings transmit successfully before your next VAT deadline.

Bank Feed Integration — Automating Transaction Flow

Bank feed setup allows your accounting platform to import transactions automatically.

This significantly reduces manual bookkeeping work while improving reporting accuracy.

Bank feed integration enables:

• Real-time income tracking
  • Automatic expense capture
  • Faster reconciliations
  • Reduced admin workload

We connect and configure feeds across multiple accounts where required.

Training & Onboarding — Making Software Easy to Use

Even the best accounting software is only effective if you know how to use it confidently.

We provide onboarding training tailored to your experience level.

This includes:

• Recording sales invoices
  • Logging expenses
  • Uploading receipts
  • Reviewing VAT positions
  • Generating reports
  • Preparing submissions

Our goal is to ensure your system feels intuitive — not technical.

Migrating From Existing Systems

If you’re moving from spreadsheets, legacy Sage systems, or other accounting platforms, migration must be handled carefully.

We manage:

• Data transfers
  • Opening balance reconciliation
  • Historical VAT position alignment
  • Customer & supplier imports

This ensures financial continuity while transitioning into MTD compliance.

Common Software Setup Mistakes

We regularly help businesses correct software setups that were implemented without professional guidance.

Common issues include:

• Incorrect VAT rate coding
  • Flat Rate Scheme misconfiguration
  • Duplicate bank feed imports
  • Expense misclassification
  • Unlinked HMRC submissions
  • Incomplete chart structures

These errors can distort VAT returns and income reporting — creating compliance risks.

Proper setup prevents these issues from arising.

Compliance Risks of Incorrect Software Configuration

Incorrect software setup doesn’t just affect bookkeeping — it can impact tax reporting accuracy.

Potential consequences include:

• Incorrect VAT liabilities
  • Underreported income
  • Submission rejections
  • Late filing penalties
  • HMRC compliance reviews

Because MTD reporting is digital, discrepancies are easier for HMRC to detect.

Professional implementation protects both compliance and financial accuracy.

How We Help With Xero, QuickBooks & Sage MTD Setup

We provide end-to-end implementation support across all three platforms.

Our services include:

• Software selection guidance
  • Full system configuration
  • VAT scheme setup
  • HMRC linking
  • Bank feed integration
  • Receipt capture implementation
  • Reporting structure design
  • Submission testing
  • Staff training

Whether you’re a sole trader, landlord, or limited company, we tailor software environments to your reporting needs.

Support Beyond Implementation

Many clients continue working with us after setup for ongoing compliance and reporting support.

This may include:

• Bookkeeping reviews
  • VAT return preparation
  • Income reporting submissions
  • Software optimisation
  • System health checks

We ensure your digital accounting environment continues running smoothly long after implementation.

Frequently Asked Questions — Xero, QuickBooks & Sage MTD Setup

Which software is best for MTD?
It depends on your business structure, reporting needs, and transaction complexity.

Are all three HMRC compliant?
Yes — Xero, QuickBooks, and Sage are fully recognised MTD software providers.

Can you migrate data from spreadsheets?
Yes — we handle full data migration and reconciliation.

Do you link the software to HMRC?
Absolutely — we complete VAT authorisation and submission setup.

Do you provide training?
Yes — tailored onboarding is included.

Can you manage filings after setup?
Yes — we provide ongoing VAT and income reporting support.

Ready to Get Your MTD Software Set Up Properly?

If you’re preparing for Making Tax Digital and want confidence your accounting system is compliant, connected, and fully optimised — we’re here to help.

Audit Consulting Group will:

• Recommend the right platform
  • Configure your system correctly
  • Link VAT submissions
  • Connect bank feeds
  • Migrate historical data
  • Train your team

You get a fully operational digital reporting environment — without the technical stress.

Speak with our specialists today and get your Xero, QuickBooks, or Sage MTD setup completed professionally.