Cloud Accounting Setup (Xero, QuickBooks, Sage)

If you're moving from spreadsheets or manual bookkeeping to cloud accounting software, getting it set up properly from the start makes all the difference. Cloud accounting software must be compatible with Making Tax Digital (MTD) requirements, which requires digital record-keeping and automated VAT returns for businesses meeting MTD thresholds (gov.uk MTD guidance). Setting up cloud accounting software involves data migration (transferring existing financial data), customizing settings (tax rates, invoice templates, user permissions), and integrating with other business tools (CRM, e-commerce platforms). Making Tax Digital for Income Tax (MTD IT) rollout is scheduled for 2025–26, requiring businesses with qualifying income over £20,000 from self-employment or property to maintain digital records and submit quarterly updates.

The problem is most businesses don't realise how important proper setup is. They try to do it themselves, miss important configuration steps, or choose software that doesn't fit their needs. That causes problems—data migration issues and lost transactions, incorrect tax settings causing compliance problems, missed MTD requirements and penalties, and wasted time trying to fix mistakes after setup.

We handle cloud accounting setup for businesses moving to Xero, QuickBooks, or Sage: software selection (helping you choose the right cloud accounting software based on your business needs, size, and MTD requirements), initial setup (setting up your company file, chart of accounts, tax settings, and user permissions), data migration (transferring existing financial data from spreadsheets or other systems into your new cloud accounting software), bank feed setup (connecting your bank accounts for automated transaction feeds and reconciliation), integration setup (connecting your cloud accounting software with other business tools like CRM, e-commerce platforms, or payment processors), MTD compliance configuration (ensuring your software is configured for Making Tax Digital compliance including VAT and Income Tax requirements), and training and onboarding (training you and your team on how to use the software effectively). Whether you're a sole trader in Medway moving from spreadsheets, a limited company in Maidstone needing MTD compliance, or a business in Canterbury wanting to integrate cloud accounting with existing systems, we'll handle your cloud accounting setup that works. No data loss, no compliance issues—just proper setup that saves you time and keeps you compliant.

What this helps you do (fast)

• Choose the right software for your business — We'll help you choose between Xero, QuickBooks, and Sage based on your needs, size, and budget. Choosing the right software saves money and avoids switching costs later.
• Migrate data without losing information — We'll transfer all your existing financial data from spreadsheets or other systems into your new cloud accounting software. Proper migration ensures nothing is lost.
• Configure software for your business — We'll set up charts of accounts, tax settings, invoice templates, and user permissions tailored to your business. Proper configuration saves time and ensures accuracy.
• Connect bank feeds for automation — We'll connect your bank accounts so transactions feed automatically into your cloud accounting software. Automated feeds save hours of manual data entry.
• Ensure MTD compliance from day one — We'll configure your software for Making Tax Digital compliance, ensuring you meet all HMRC requirements. MTD compliance avoids penalties and keeps you legal.
• Integrate with other business tools — We'll connect your cloud accounting software with CRM, e-commerce, payment processors, or other tools you use. Integration saves time and reduces errors.

How it works

Step-by-step process for cloud accounting setup:

1. Discovery call — We chat about your business: what accounting software you're currently using (spreadsheets, manual records, other software), what your business structure is (sole trader, limited company, partnership), what your turnover is and whether you're VAT-registered, what your bookkeeping needs are (invoicing, expenses, payroll, etc.), whether you need MTD compliance, what integrations you need (bank feeds, CRM, e-commerce, etc.), and what your budget is. Understanding your situation helps us recommend the right software.
2. Software selection and recommendation — We help you choose the right cloud accounting software:
   • Xero — Best for small to medium businesses, excellent bank reconciliation, strong integrations, user-friendly interface. MTD-compliant for VAT and Income Tax.
   • QuickBooks — Good for small businesses, strong invoicing features, good reporting, cost-effective. MTD-compliant for VAT and Income Tax.
   • Sage — Good for larger businesses, strong payroll features, comprehensive reporting, scalable. MTD-compliant for VAT and Income Tax.
   • Comparison — We compare features, pricing, and suitability for your specific needs to help you make the best choice.
   • Trial setup — We can set up trial accounts so you can test software before committing.
   Software selection ensures you choose the right platform for your business.
3. Initial software setup — We set up your cloud accounting software:
   • Company file creation — We create your company file with correct business details (name, registration number, address, etc.).
   • Chart of accounts setup — We set up your chart of accounts tailored to your business type and industry, ensuring accounts are organised correctly.
   • Tax settings configuration — We configure VAT settings (if applicable), tax rates, and tax codes to ensure correct tax calculations.
   • Financial year setup — We set up your financial year dates and accounting periods correctly.
   • User setup and permissions — We create user accounts with appropriate permissions (admin, accountant, user, etc.) based on who needs access.
   Initial setup establishes your software foundation.
4. Data migration — We migrate your existing financial data:
   • Data extraction — We extract data from your current system (spreadsheets, manual records, other software).
   • Data cleaning — We clean and organise data to ensure it's accurate and ready for migration.
   • Data import — We import opening balances, customer and supplier lists, product/service lists, and historical transactions (if required).
   • Data verification — We verify all data has been imported correctly and balances match your previous records.
   • Opening balance confirmation — We confirm opening balances are correct and your books balance.
   Data migration ensures continuity and nothing is lost.
5. Bank feed setup and configuration — We connect your bank accounts:
   • Bank account identification — We identify all bank accounts, credit cards, and payment processors that need connecting.
   • Bank feed connection — We connect bank feeds using Open Banking or direct bank connections, ensuring secure access.
   • Account mapping — We map bank accounts to the correct accounts in your chart of accounts.
   • Automated reconciliation setup — We configure automated bank reconciliation rules to match transactions automatically where possible.
   • Testing — We test bank feeds to ensure transactions are importing correctly.
   Bank feed setup automates data entry and reconciliation.
6. Integration setup (if needed) — We connect your cloud accounting software with other tools:
   • CRM integration — We connect CRM systems (Salesforce, HubSpot, etc.) to sync customer and sales data.
   • E-commerce integration — We connect e-commerce platforms (Shopify, WooCommerce, etc.) to sync sales and inventory.
   • Payment processor integration — We connect payment processors (Stripe, PayPal, etc.) to sync payment data.
   • Payroll integration — We connect payroll software if you use separate payroll systems.
   • Other integrations — We connect any other business tools you use that can integrate with your accounting software.
   Integration setup connects your business tools for seamless data flow.
7. MTD compliance configuration — We ensure your software is configured for Making Tax Digital:
   • MTD VAT setup — We configure MTD for VAT if you're VAT-registered, ensuring digital record-keeping and automated VAT return submission.
   • MTD IT preparation — We prepare your software for Making Tax Digital for Income Tax (from April 2026), ensuring digital record-keeping and quarterly update capability.
   • MTD registration — We help register you for MTD with HMRC if required.
   • Compliance verification — We verify your software meets all MTD requirements and is ready for compliance.
   MTD compliance configuration ensures you meet all HMRC requirements.
8. Training and handover — We train you and your team:
   • Software training — We provide training on using your cloud accounting software, covering key features and daily tasks.
   • Bank reconciliation training — We show you how to reconcile bank transactions and handle exceptions.
   • Invoicing and expenses training — We train you on creating invoices, recording expenses, and managing suppliers and customers.
   • Reporting training — We show you how to run reports (profit and loss, balance sheet, cash flow, etc.).
   • MTD training — We explain MTD requirements and how to maintain compliance.
   • Documentation — We provide documentation and guides for future reference.
   Training ensures you can use your software effectively.

We handle all aspects of cloud accounting setup, from software selection to training. The key is choosing the right software, setting it up properly, migrating data accurately, and ensuring MTD compliance from day one.

Costs & timelines

Pricing factors:

• Software choice — Different software (Xero, QuickBooks, Sage) have different setup complexity and requirements.
• Data migration complexity — Simple migration (clean spreadsheet data) vs. complex migration (multiple systems, large volumes of data) increases time and cost.
• Number of integrations — More integrations (bank feeds, CRM, e-commerce, etc.) increase setup time and complexity.
• Business complexity — Simple business (few transactions, straightforward structure) vs. complex business (multiple entities, complex structure, many transactions) increases setup requirements.
• Training requirements — Amount of training needed depends on your team's experience and comfort with cloud accounting.

Commonly reported ranges by local providers:

• Simple setup (small business, clean data, basic configuration): £300–£600 (includes software selection, initial setup, basic data migration, bank feed connection, basic training)
• Standard setup (medium business, moderate data migration, integrations): £500–£1,200 (includes software selection, comprehensive setup, data migration, bank feeds, integrations, MTD configuration, training)
• Complex setup (large business, complex data migration, multiple integrations): £1,000–£2,500+ (includes software selection, comprehensive setup, complex data migration, multiple integrations, MTD configuration, extensive training)
• Ongoing support (optional): £100–£300 per month (ongoing support, updates, training refreshers, troubleshooting)

Why cloud accounting setup costs what they do:

• Specialist knowledge — Understanding different cloud accounting software, MTD requirements, data migration, and integrations requires specialist knowledge.
• Time and complexity — Software selection, setup, data migration, integration configuration, and training take significant time and attention to detail.
• Value provided — Proper setup saves you time, ensures compliance, and avoids costly mistakes, providing substantial long-term value.
• Software subscriptions — Cloud accounting software subscriptions are additional (typically £10–£60 per month depending on software and plan).

Timeline: Software selection typically takes 1 week. Initial setup typically takes 1–2 weeks. Data migration typically takes 1–3 weeks depending on complexity. Bank feed and integration setup typically takes 1–2 weeks. MTD configuration typically takes 1 week. Training typically takes 1–2 days. Overall setup typically takes 4–8 weeks from start to finish, depending on complexity.

Payment: Typically invoiced in stages: software selection (on recommendation), setup and migration (on completion), training (on completion). Payment terms are typically 14–30 days.

No hidden fees. Our price includes software selection, initial setup, data migration, bank feed setup, integrations (if included), MTD configuration, and training. Software subscriptions are separate and paid directly to software providers.

Kent (UK) focus

For businesses in Kent, whether you're a sole trader in Medway moving from spreadsheets, a limited company in Maidstone needing MTD compliance, or a business in Canterbury wanting to integrate cloud accounting with existing systems, cloud accounting setup is essential for meeting Making Tax Digital requirements and streamlining your bookkeeping. Many Kent businesses don't realise how important proper setup is, or they try to do it themselves and miss critical steps. We help local businesses choose the right software, set it up properly, migrate data accurately, connect bank feeds and integrations, ensure MTD compliance, and train teams effectively, ensuring they save time and stay compliant. It's worth getting it right—poor setup can cause data loss, compliance issues, and wasted time, while proper setup saves hours every month and keeps you compliant with HMRC requirements.

Common Kent cloud accounting setup scenarios:

• Moving from spreadsheets — Businesses moving from Excel spreadsheets to cloud accounting for MTD compliance.
• MTD preparation — Businesses preparing for Making Tax Digital for Income Tax from April 2026.
• VAT-registered businesses — VAT-registered businesses needing MTD for VAT compliance.
• Businesses wanting automation — Businesses wanting to automate bank reconciliation and reduce manual bookkeeping time.

Remote-first, Kent-focused. We don't need to meet in person (though we can if you prefer), and we understand what Kent businesses are dealing with. Software selection, setup, data migration, integrations, MTD compliance, training—we'll handle your cloud accounting setup that saves time and keeps you compliant.

FAQs