Accountant vs Online Software: What's Better for South East London Sole Traders?

The short answer

• ✓ Software handles the recording: bank feeds, invoices and a live view of your figures, for a monthly subscription.
• ✓ An accountant handles the judgement: reviewing your figures, catching missed expenses and checking your return before it's filed.
• ✓ Making Tax Digital for Income Tax means more sole traders now need compatible software anyway.

The Making Tax Digital dates in this article were checked against GOV.UK on 1 October 2026.

What does online accounting software actually do well?

Cloud software like Xero, QuickBooks or FreeAgent has genuinely changed what a sole trader can do without any help. For a few pounds a month, you get:

• ✓ Bank transactions pulled in automatically instead of typed up by hand
• ✓ Invoices sent and tracked in one place
• ✓ A live view of what you've earned and spent, not a spreadsheet from three months ago
• ✓ Making Tax Digital compatibility built in, which matters more each year as the requirement widens

For a sole trader with straightforward income and modest turnover, that alone covers a lot of ground.

Where does accounting software run out of road?

Software records what you tell it. It doesn't know what you haven't told it, and it definitely doesn't know tax law. In practice, that means:

• ✓ It won't flag an allowable expense you didn't think to claim
• ✓ It won't tell you if you'd be better off as a limited company instead of a sole trader
• ✓ It won't check your Self Assessment return before it's submitted, that's still entirely on you
• ✓ It won't notice a mistake unless you already know enough to spot it yourself

The software is only ever as good as the person using it, and most sole traders didn't start their business to become tax experts.

What does an accountant actually add?

A good accountant isn't competing with your software, they're using it. The value is in what happens around the data, not the data entry itself:

• ✓ Reviewing what the software has recorded before anything gets filed with HMRC
• ✓ Catching allowable expenses and reliefs the software will never flag on its own
• ✓ Explaining what your numbers actually mean for real decisions, registering for VAT, taking on your first member of staff, or switching to a limited company
• ✓ Someone to call when HMRC sends a letter you don't understand

So what's right for a South East London sole trader?

Most sole traders across Catford, Lewisham and the wider SE postcodes do best combining the two: software for the day-to-day recording, an accountant for the parts that actually carry risk, the tax return itself, and anything HMRC-facing.

Software alone is fine until the year you get something wrong. A mistake on a Self Assessment return can cost more in penalties and back tax than an accountant's fee would have. Here's what a small business accountant costs in London.

Whichever tool you use, accurate records are your responsibility, so HMRC's guidance on record keeping is worth a read.

REYS Accountants, based in Catford, SE6, sets clients up with cloud bookkeeping. A qualified accountant then reviews it before your Self Assessment return goes to HMRC, so you get the speed of software with someone checking the work. See how we work as an accountant for sole traders.

Running a shop or cafe? Our page on bookkeeping and VAT for Lewisham businesses covers the software side for high-street businesses.

So which should you choose, an accountant or software?

Software handles the recording. An accountant handles the judgement calls, the checking, and the moments when something doesn't look right.

For most sole traders, it isn't a choice between the two. It's knowing which one to trust with which part.

Frequently Asked Questions